Scale AI Eyes $25 Billion Valuation in Tender Offer Negotiations

The data-labeling leader's potential valuation surge follows a pivotal U.S. Defense Department contract and reflects growing investor demand in the AI sector.

• Scale AI is negotiating a tender offer that could value the company at up to $25 billion, nearly doubling its 2024 valuation of $13.8 billion.
• The company recently secured a significant contract with the U.S. Defense Department to integrate AI agents into military decision-making processes.
• Founded in 2016 by Alexandr Wang, Scale AI has become a key provider of data-labeling services, essential for training AI models.
• Its customers include major tech firms like OpenAI, Microsoft, and Meta, highlighting its central role in the AI ecosystem.
• Tender offers are increasingly used by startups to provide liquidity for employees and early investors as IPO timelines extend.

3 Articles

Business Insider Benzinga