Zuckerberg’s AI push continues as Meta ramps up spending and hiring
Meta explored acquiring artificial intelligence startup Perplexity AI before redirecting its focus to a $14.3 billion investment in Scale AI, CNBC confirmed Friday. Although talks between Meta and Perplexity took place, the deal never materialized, with sources close to the matter describing the discussions as either “mutually dissolved” or dropped by Perplexity.
The outreach to Perplexity underscores Meta CEO Mark Zuckerberg’s increasing urgency to catch up to competitors OpenAI and Alphabet in the AI race. While Perplexity declined to comment and Meta has yet to respond publicly, the move adds to a string of aggressive efforts by Meta to acquire talent and technology at the frontier of artificial intelligence.
Meta secures 49% stake in Scale AI
Following the unsuccessful talks with Perplexity, Meta struck a massive deal with Scale AI, taking a 49% stake in the startup. While the social media giant gains no voting rights, the agreement brings Scale founder Alexandr Wang and key engineers into Meta’s growing AI team.
Meta’s decision to partner with Scale reinforces its long-term commitment to building next-generation AI tools and infrastructure. The company is also leveraging the expertise of Daniel Gross, CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman, both of whom are joining Meta’s AI division under Wang’s leadership.
Meta’s AI arms race heats up
Meta’s recent activities point to a high-stakes AI talent war. Earlier this year, it reportedly tried to acquire Safe Superintelligence, valued at $32 billion. Though unsuccessful, the negotiations laid the groundwork for Gross and Friedman’s eventual recruitment. Meta also acquired a stake in their venture firm, NFDG.
The company is pulling out all the stops to stay competitive. OpenAI CEO Sam Altman recently claimed on the “Uncapped” podcast that Meta has offered signing bonuses up to $100 million to lure top engineers. Altman said OpenAI views Meta as its most formidable rival, noting, “Their current AI efforts have not worked as well as they had hoped.”
Meta’s broader AI strategy
Meta’s intense focus on artificial intelligence follows concerns that it is lagging behind on both foundational models and consumer-facing applications. The company’s latest moves aim to close that gap, with Zuckerberg determined to position Meta as a dominant force in the race toward artificial general intelligence (AGI).
While OpenAI and Alphabet continue to lead in generative AI deployment, Meta’s deep pockets and strategic hires suggest that its next wave of AI products may arrive sooner than expected.
