Meta's $14.8 Billion Deal With Scale AI Raises Questions Over Fair Play in AI Race

Meta, the parent of Facebook, has made headlines with its $14.8 billion investment in Scale AI, a company that provides data-labeling services powered by gig workers. This deal avoids the type of full acquisition that would automatically result in a review by U.S. antitrust authorities and grants Meta a 49% nonvoting stake, its second-largest deal to date.

Scale AI trains AI models by providing massive amounts of labeled data needed for machine learning. Its clients include major Meta competitors like Microsoft and OpenAI, which adds a layer of complexity to the deal.

What’s interesting here is that it includes the hiring of Scale AI’s 28-year-old CEO, Alexandr Wang. He’ll join Meta but remain on Scale’s board with restrictions on access to sensitive information. While the structure technically avoids crossing regulatory lines, some industry watchers see it as a test of the Trump administration’s stance on AI partnerships that stop short of full acquisitions—commonly known as “acquihires.”

Regulatory attention is still a risk

Although the investment doesn’t meet the threshold for an automatic review, regulators can still investigate if they suspect anti-competitive intent or attempts to bypass scrutiny. Legal experts say the deal appears to have been structured to prevent conflicts of interest, like limiting Meta’s access to rival data or cutting competitors off from Scale’s services.

But reactions from the tech industry suggest concern. Google has reportedly cut ties with Scale following Meta’s investment, and other clients are re-evaluating their relationships. Despite this, Scale says it remains committed to protecting customer data and working with both commercial and government partners.

Some analysts argue the regulatory environment has gotten more lenient under President Donald Trump. William Kovacic, a former FTC official and current professor, said while Trump-appointed enforcers are less eager to regulate AI development, they’re still wary of tech giants’ growing power.

Previous AI deals under the microscope

Meta’s investment is the latest in a growing list of high-profile AI partnerships that test antitrust norms. The FTC previously looked into Microsoft’s $650 million deal with Inflection AI, which involved hiring most of the startup’s staff and accessing its models. Another investigation was launched into Amazon’s hiring of executives from AI firm Adept. Neither case has resulted in enforcement action so far, so regulators may take a wait-and-see approach as the AI boom accelerates. But the growing number of “acquihires”—where talent is acquired without buying the company—has some calling for more scrutiny.

Senator Elizabeth Warren is one of them. She says Meta’s deal shouldn’t be allowed to circumvent federal law just because it doesn’t involve a controlling stake. If the deal ultimately harms competition or enhances Meta’s dominance in ways that violate antitrust rules, she says regulators should act.

AI partnership's uncertain future

While Meta is still in the middle of an antitrust lawsuit from the FTC over past practices, it’s unclear if the agency will take action on this new-scale investment. The Department of Justice is also keeping an eye on other AI partnerships, like Google’s with Character.AI, to make sure the big tech companies aren’t sneaking up on AI development.

For now, Meta’s deal with Scale AI is a big bet on the future of AI—and a test of how far companies can go before they get in trouble.