Meta’s multi-billion dollar investment in AI training data provider Scale AI is facing increased scrutiny from antitrust regulators. The nonvoting stake, though not triggering automatic review, is raising concerns about potential anticompetitive effects in the rapidly evolving AI landscape.
The deal, which gives Meta a substantial position in a company whose clients include rivals like Microsoft and OpenAI, prompts worries about fair access to critical AI training data. Reports indicate that Google, another key player, has already distanced itself from Scale AI following Meta’s investment.
Experts believe that regulators are paying close attention to similar AI deals, even those structured to avoid traditional merger reviews. Senator Elizabeth Warren has publicly urged a thorough investigation, highlighting the need to prevent anticompetitive practices. The Meta-Scale AI deal highlights a broader trend of tech giants using investments and talent acquisitions to access vital AI resources, potentially skirting more rigorous antitrust evaluations.
The increased scrutiny of AI investments reflects a broader challenge for regulators: determining whether these arrangements are legitimate business strategies or veiled attempts to gain unfair competitive advantages in the AI sector.