Meta’s Aggressive AI Acquisition Push Targets Top Startups#

Acquisition Efforts#

Meta targeted startups critical to AI innovation, with mixed results:

• Scale AI: Meta invested $14.3 billion for a 49$29 billion. Alexandr Wang, the 28-year-old co-founder and former MIT student, joined Meta to spearhead its Superintelligence lab, bringing key employees. Scale AI provides high-quality data labeling and curation for AI models.
• Perplexity AI: Meta held talks for a potential acquisition but failed to reach an agreement. Perplexity, valued at ~$18 billion in its latest round, focuses on AI-powered search and is developing an AI-driven web browser to challenge Google.
• Runway: Meta approached Runway, known for AI video-generation tools and a 2025 CNBC Disruptor 50 list member, but discussions dissolved early.
• Safe Superintelligence (SSI): Meta attempted to acquire SSI, co-founded by OpenAI’s former chief scientist Ilya Sutskever and valued at $32 billion, but was rebuffed. Instead, Meta hired SSI CEO Daniel Gross and former GitHub CEO Nat Friedman, taking a stake in their venture fund, NFDG.
• Thinking Machines: Co-founded by OpenAI’s former CTO Mira Murati, this startup was also approached, but no deal materialized.
• NFDG: Meta secured a stake in the venture capital firm run by Gross and Friedman, which has backed AI startups like Perplexity, CoreWeave, and Character.ai. Both will work under Wang at Meta.

Talent Acquisition#

• OpenAI Poaching Attempts: Meta offered OpenAI employees signing bonuses up to $100 million, but most declined, per OpenAI CEO Sam Altman. Meta CTO Andrew Bosworth noted the unprecedented market rates for AI talent.
• Key Hires: Beyond Wang, Meta recruited researchers from Google DeepMind and Sesame AI, alongside Gross and Friedman, to bolster its Superintelligence lab.

Strategic Context#

• Internal Challenges: Zuckerberg’s frustration with the slow progress of Meta’s open-source large language model, Llama, prompted the external push. Posts on X suggest Meta’s AI efforts, including Llama 4 setbacks, lag behind competitors.
• Existing Assets: Meta employs AI pioneer Yann LeCun as chief AI scientist and operates the Fundamental AI Research (FAIR) lab, but their collaboration with Wang remains unclear.
• Superintelligence Goal: Meta aims to develop “superintelligence,” a hypothetical AI surpassing human capabilities, positioning itself against OpenAI and Google’s pursuit of artificial general intelligence (AGI).
• AI Integration: Meta is embedding AI across its platforms, powering Instagram content recommendations, WhatsApp conversational assistants, and exploring AI agents for customer service and commerce.

Market Dynamics#

• Talent War: The AI talent market is fiercely competitive, with OpenAI, Google DeepMind, Microsoft, and Anthropic vying for top researchers. Meta’s nine-figure compensation packages reflect this intensity.
• Industry Sentiment: X posts highlight skepticism about Meta’s strategy, with some viewing the Scale AI deal as a sign of desperation rather than leadership, given Meta’s heavy compute and data investments.
• Competitive Pressure: Meta perceives OpenAI as its biggest rival, per Altman, and is countering with aggressive acquisitions and hires to close the gap.

Implications#

• Meta’s AI Ambitions: The Scale AI deal and talent hires position Meta to accelerate its superintelligence efforts, but integration challenges with LeCun’s FAIR lab and cultural fit with new hires like Wang remain risks.
• Startup Ecosystem: Meta’s failed bids for Perplexity, Runway, and SSI highlight the independence of high-value AI startups, bolstered by strong funding ($80 billion in Q1 2025).
• Innovation Race: Meta’s external focus may yield faster AI advancements but could strain internal teams and resources, especially if Llama’s performance issues persist.

Conclusion#

Meta’s $14.3 billion Scale AI investment and talent acquisitions signal a bold push to catch up in the AI race, driven by Zuckerberg’s frustration with Llama’s progress. While securing Wang and a stake in NFDG strengthens Meta’s Superintelligence lab, failed bids for Perplexity, Runway, and SSI underscore the competitive landscape. As Meta integrates AI across its platforms, its success will hinge on aligning new talent with existing assets like LeCun and FAIR, navigating a heated talent war, and delivering on superintelligence ambitions. Investors should monitor Meta’s AI product rollouts and Llama’s evolution amid skepticism on X about its strategy.