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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.

The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024.  REUTERS/Evan Buhler/File Photo
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Overview

  • 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.