What is Scale AI? And why is Meta paying billions for it?

Kenneth Pangan
Written by

Kenneth Pangan

Last edited September 8, 2025

If you’ve been keeping an eye on the world of AI, you’ve probably seen the name Scale AI pop up next to giants like Meta, OpenAI, and even the U.S. military. When Meta drops a cool $14.3 billion, you know something big is happening. But what does a company that talks about "data labeling" and "RLHF" actually do? And why is it worth so much?

Let’s break down what Scale AI is, why it’s so important for building the world’s most powerful AI, and figure out the difference between building an AI from scratch and using one to solve your business problems right now.

So, what is Scale AI, really?

To put it simply, Scale AI is a data infrastructure company. Think of it like this: if a large language model (LLM) is a high-performance race car engine, Scale AI provides the super-premium, perfectly refined fuel it needs to run. The company has built a massive platform and a global team to produce huge amounts of high-quality, human-checked data that’s used to train, fine-tune, and test AI systems.

Without this "ground truth" data, even the smartest AI wouldn’t be able to make sense of the world, follow instructions, or give you a useful answer. Scale AI’s job is to supply this foundational layer, so AI developers can build better, more reliable models without the headache.

Breaking down the Scale AI jargon: RLHF, data labeling, and fine-tuning

To really get why Scale AI is such a big deal, it helps to understand a few terms they throw around.

  • Data Labeling: This is just a fancy term for humans manually tagging raw data so an AI can understand it. This could be someone drawing boxes around cars in photos to teach a self-driving car, transcribing audio files, or sorting text by whether it sounds happy or angry.
  • RLHF (Reinforcement Learning from Human Feedback): This is a technique for teaching an AI to behave more like a human. Real people review and rank different answers the AI gives to a prompt, "rewarding" it for the responses that are the most helpful and accurate. This feedback loop is a huge part of why models like ChatGPT got so good, so fast.

  • Fine-Tuning: This means taking a big, general-purpose AI model and training it a bit more on a smaller, specific set of data. This helps it get really good at a particular job, like analyzing medical scans or handling customer support chats.

Why Scale AI is the powerhouse behind the scenes

Scale AI has become the go-to partner for anyone working on the very edge of artificial intelligence. Their ability to deliver top-notch data on a massive scale gives them a pretty unique and powerful spot in the industry.

The Scale AI Meta partnership and the chase for superintelligence

The biggest news for Scale AI lately has been its huge deal with Meta. Meta’s $14.3 billion investment for a 49% stake wasn’t just about throwing money around; it was a calculated move to lock down a vital piece of the AI puzzle. To make its Llama models a real threat to OpenAI’s GPT series, Meta needs the best training data it can get, and this deal makes sure they have it.

On top of that, Scale AI’s founder, Alexandr Wang, is now heading up a new superintelligence lab at Meta. This shows just how deep the partnership goes, as they team up to push the boundaries of what AI can do.

[This video from CNBC breaks down Meta's significant investment in Scale AI and what it means for the future of AI development.]

How Scale AI is fueling governments and major industries

It’s not just big tech, either. Scale AI works closely with the U.S. Department of Defense, the Army, and the Air Force, helping them develop AI for national security. They also supply data to major players in the auto industry, like General Motors and Toyota, to train the incredibly complex models needed for self-driving cars. This stuff isn’t trivial; it’s high-stakes, mission-critical work.

Ensuring data quality

There’s an old saying in tech: "garbage in, garbage out." It’s never been more true than with AI. An AI model is only as good as the data it’s trained on. The whole reason Scale AI exists is to make sure that data isn’t just big, but also accurate, consistent, and relevant. This makes them a "kingmaker" for any company that’s serious about building a world-class AI.

The big question: Should your business use Scale AI?

Okay, so we know Scale AI is a beast. But does that mean it’s the right tool for your company? This is where we hit the classic "build vs. buy" debate. Using a service like Scale AI is the ultimate "build" path, you’re creating a new, foundational AI model from scratch. For almost every business out there, this is totally unnecessary and just not practical.

The real cost of building a custom AI model with Scale AI

Deciding to "build" your own AI with a provider like Scale AI costs a lot more than just the platform fees. Let’s be real about what it takes.

  • The Money: You’re looking at a multi-million dollar project, easy. This is the kind of budget Meta has, not what a typical company has lying around to improve its customer support.

  • The Time and People: A project this big needs a full-time, in-house team of very expensive Machine Learning engineers and data scientists. If you look at their job board, Scale AI hires PhDs to help their clients, which tells you the level of brainpower you need on your side. You’re looking at a timeline measured in months, if not years.

  • The Wrong Tool for the Job: Scale AI is for making brand-new models. Most businesses don’t need to build the next GPT-4. They need to use the amazing AI that already exists to fix a specific problem, like getting through support tickets faster or making your support agents’ lives easier.

When building with Scale AI makes sense (and for who)

  • Good fit for Scale AI: You’re a global tech giant, a government building its own AI, or a car company creating a one-of-a-kind perception model for self-driving cars.

  • Poor fit for Scale AI: You’re a Head of Support at an e-commerce, SaaS, or tech company. Your goal is to cut down resolution times, answer repetitive questions automatically, and free up your team to focus on the tricky stuff.

Pro Tip: For most companies, the goal isn’t to invent a new AI. It’s to use powerful, existing AI to solve a real business problem and see a return on your investment quickly.

The practical alternative to Scale AI: AI that works out of the box

Instead of that long and expensive "build" path, most businesses will get way more bang for their buck by simply "integrating" an AI solution. This means using a specialized AI platform built for a specific purpose, like customer service or internal IT help. These tools are built on top of those powerful foundational models but are designed to solve real-world problems from day one.

This is exactly where a solution like eesel AI comes into the picture. It’s what’s known as an application-layer AI, and it’s built for immediate impact.

  • Go live in minutes, not months: eesel AI is completely self-serve, with one-click integrations for help desks like Zendesk, Freshdesk, and Intercom. You can get it up and running yourself, without sitting through a bunch of sales calls or demos.
  • It uses the knowledge you already have: Forget about creating a massive new dataset. eesel AI plugs into the knowledge you already have. It learns from your past support tickets, help articles, and internal docs in places like Confluence or Google Docs to give answers that are specific to your business from the get-go.

  • You can test it risk-free: With a powerful simulation mode, eesel AI can show you how it would have handled thousands of your past tickets. This gives you a clear picture of how well it will perform and how much it can automate before you ever show it to a customer.

FeatureBuilding with Scale AIIntegrating with eesel AI
Time to ValueMonths or YearsMinutes to Hours
Required TeamPhDs, ML Engineers, Data ScientistsYour existing support/IT team
Upfront CostMillions of dollarsStarts at $239/month
Knowledge SourceRequires massive, new labeled datasetsConnects to your existing docs & tickets
Primary GoalCreate a new foundational AI modelSolve a specific business problem (e.g., support)

Choosing between the Scale AI path and a practical alternative

So, you’ve got two main roads you can take with AI. The first, the Scale AI route, is all about creating massive, groundbreaking models. It’s an exciting, expensive, and complicated journey that’s really only for the biggest and most technically savvy organizations on the planet.

The second path is much more practical. It’s about using application-layer AI platforms to solve your problems today. For anyone leading a customer support, IT, or operations team, this is the path that delivers real results, cutting costs, making your team more efficient, and keeping customers happy, without needing a team of AI researchers. At the end of the day, you have to ask yourself: are you trying to build the engine, or are you ready to get in and drive the car?

Ready to put AI to work?

If you’re looking for a practical, powerful AI solution that works with the tools you already use, see how eesel AI can transform your support. You can get started in minutes with eesel AI and deploy an AI agent that learns from your own business? See how eesel AI can help your team do their work, start a free trial or book a demo today,

Frequently asked questions

For most e-commerce businesses, yes. Scale AI is designed for creating new, foundational AI models from the ground up, which is a multi-million dollar effort. A practical solution that integrates with your existing help desk and knowledge base will provide a much faster and more affordable return on investment.

The main difference is "build vs. integrate." Using Scale AI is like building a car engine from raw materials, requiring a team of engineers and years of work. An out-of-the-box solution is like leasing a fully-built car designed for a specific purpose, like customer support, that you can start driving immediately.

Even for a giant like Meta, preparing high-quality training data is a monumental task that requires specialized infrastructure and a massive, managed workforce. Partnering with Scale AI allows them to access this expertise at an incredible scale, accelerating their model development without having to build that entire operation in-house.

That’s correct for most businesses. If your goal is to solve a specific problem like automating customer support, you don’t need to build a new model. You are better served by application-layer AI tools that use powerful existing models to deliver immediate results without the complexity of building from scratch.

The biggest challenges beyond budget are time and talent. A project using Scale AI requires a dedicated in-house team of expensive, hard-to-find AI/ML engineers and data scientists. The timeline to see a return on your investment is often measured in months or even years, not days.

High-quality, accurately labeled data is the foundation of a reliable AI. It ensures the model learns the correct patterns and understands instructions properly, which helps it avoid generating incorrect or biased responses. Better data directly translates to a more accurate, helpful, and trustworthy AI.

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Kenneth Pangan

Writer and marketer for over ten years, Kenneth Pangan splits his time between history, politics, and art with plenty of interruptions from his dogs demanding attention.