Meta’s latest move to deepen its presence in the artificial intelligence race—a $14.8 billion investment in Scale AI—is sparking debate over how U.S. regulators should handle strategic deals that blur the line between investment and acquisition.
The deal gives Meta a 49% nonvoting stake in Scale AI, a company known for using gig workers to label data for training AI models. Scale’s client list includes some of Meta’s biggest rivals in the AI space, such as Microsoft and OpenAI.
But it’s not just the money that’s raising eyebrows—Scale CEO Alexandr Wang is also heading to Meta as part of the arrangement. He’ll remain on Scale’s board but, according to sources familiar with the deal, won’t have full access to internal company data.
The structure of the deal—nonvoting and under the threshold that would trigger an automatic antitrust review—appears designed to avoid regulatory red tape. Still, experts say that doesn’t put Meta in the clear.
Although the Federal Trade Commission (FTC) hasn’t yet acted publicly on the Meta-Scale deal, legal analysts believe it’s firmly on the agency’s radar.
“This isn’t necessarily the kind of deal that gets blocked immediately,” said William Kovacic, a law professor and former FTC chair. “But regulators are watching. They want to see how this unfolds.”
Senator Elizabeth Warren echoed those concerns, calling for a closer look at what she sees as a potential competitive threat.
“Meta can call this deal whatever it wants,” she said. “But if it cuts competition or gives Meta unfair leverage, regulators should act.”
This is not uncharted territory. The FTC previously opened inquiries into similar AI-centric moves, including Microsoft’s $650 million deal with Inflection AI and Amazon’s recruitment of top AI talent from startup Adept. Neither action resulted in immediate enforcement, but the investigations signal growing caution around strategic tech partnerships that don’t fit the classic merger mold.
The investment has already created ripple effects. Google—once a client of Scale AI—has reportedly cut ties with the company following Meta’s involvement. Other partners are said to be reevaluating their relationship with Scale, concerned about data privacy and competitive risks.
A Scale spokesperson declined to comment on Google’s departure but maintained that the company remains “committed to protecting customer data” and continuing operations as usual.
The Meta-Scale deal is part of a broader trend: big tech firms snapping up strategic stakes and top AI minds without going through full-blown acquisitions. These “acquihire-style” arrangements offer access to intellectual property, data pipelines, and human capital—often without triggering regulatory alarms.
As the U.S. government wrestles with how to regulate rapidly evolving AI technologies, the challenge isn’t just about what companies are buying—it’s also how they’re doing it.
The Trump administration has signaled a light-touch approach to AI regulation, emphasizing innovation over intervention. However, the Justice Department is reportedly taking a closer look at similar deals, including Google’s partnership with Character.AI.
