Meta’s $14.8 billion investment in data-labeling startup Scale AI — and the hiring of its CEO Alexandr Wang — has triggered fresh scrutiny over so-called “acquihire” deals, testing how the Trump administration may respond to major tech partnerships in the artificial intelligence sector.
Announced on Thursday, the deal gives Meta a 49% nonvoting stake in Scale AI, marking its second-largest investment ever. Unlike a full acquisition, the structure avoids immediate review by U.S. antitrust regulators, although watchdogs could still investigate whether the deal was crafted to sidestep regulatory oversight or harm competition.
Scale AI, known for using gig workers to manually label data, counts several of Meta’s key rivals — including Microsoft and OpenAI — among its clients. While the company insists that customer data will remain protected, sources told Reuters that Alphabet’s Google has already cut ties with Scale over concerns about Meta’s involvement. Other clients are reportedly reevaluating their relationships with the firm.
Wang, the 28-year-old CEO of Scale, will join Meta in a leadership role while remaining on Scale’s board. According to sources, restrictions will be placed on his access to sensitive client information to avoid conflicts of interest.
Legal experts say Meta’s decision to take a nonvoting minority stake likely offers some protection from regulatory backlash. “It was a smart move,” said David Olson, antitrust law professor at Boston College. “But that doesn’t mean regulators won’t take a closer look.”
Under the Trump administration, antitrust regulators have been more reluctant to interfere with AI sector partnerships, signaling a desire not to stifle technological development. However, they have also voiced concerns over the dominance of Big Tech firms.
“The administration doesn’t want to regulate AI too early,” said William Kovacic, director of George Washington University’s Competition Law Center. “But they will still be watching carefully to ensure major players don’t quietly build monopolistic control.”
Federal agencies have previously opened investigations into similar acquihire-style deals, including Amazon’s hiring of executives from AI startup Adept and Microsoft’s $650 million agreement with Inflection AI. So far, no enforcement actions have been taken in those cases.
Still, critics are raising alarms. Senator Elizabeth Warren, who has led congressional probes into Big Tech’s AI strategies, said Meta’s move “must be investigated.” In a statement Friday, she warned that if the deal undermines competition, “antitrust enforcers should investigate and block it.”
The FTC, which is currently pursuing a monopoly case against Meta, declined to comment on whether the Scale AI investment would prompt additional review.
As AI partnerships multiply across the tech landscape, the Meta-Scale deal may prove a critical test of how regulators handle influence, control, and competition in one of the world’s fastest-evolving industries.
