Meta strikes $15B deal with Scale AI

Meta Platforms is set to acquire a 49 percent stake in Scale AI for nearly $15 billion, marking its largest-ever deal.

CEO Mark Zuckerberg sees The agreement as a significant move to accelerate Meta’s push into AI instead of relying solely on in-house development.

Scale AI, founded in 2016, supplies curated training data to major players such as OpenAI, Google, Microsoft and Meta. The company expects to more than double its revenue in 2025 to around $2 billion.

Once the deal is finalised, Scale AI CEO Alexandr Wang is expected to join Meta’s new AI team focused on developing artificial general intelligence (AGI).

According to Bloomberg, Zuckerberg is hiring around 50 people for a ‘superintelligence’ team.

The effort aligns with Meta’s broader AI plans, including capital expenditure of up to $65 billion in 2025 to expand its AI infrastructure instead of falling behind rivals in the AI race.

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Meta boosts AGI efforts with new team

Mark Zuckerberg, Meta Platforms CEO, is reportedly building a new team dedicated to achieving artificial general intelligence (AGI), aiming for machines that can match or exceed human intellect.

The initiative is linked to an investment exceeding $10 billion in Scale AI, whose founder, Alexandr Wang, is expected to join the AGI group. Meta has not yet commented on these reports.

Zuckerberg’s personal involvement in recruiting around 50 experts, including a new head of AI research, is partly driven by dissatisfaction with Meta’s recent large language model, Llama 4. Last month, Meta even delayed the release of its flagship ‘Behemoth’ AI model due to internal concerns about its performance.

The move signals an intensifying race in the AI sector, as rivals like OpenAI are also making strategic adjustments to attract further investment in their pursuit of AGI. This highlights a clear push by major tech players towards developing more advanced and capable AI systems.

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Meta plans $10 billion investment in Scale AI

Meta Platforms is reportedly in talks to invest over $10 billion in Scale AI, a data labelling startup already backed by Nvidia, Amazon, and Meta itself.

The deal, if finalised, would mark Meta’s largest external investment in AI to date, representing a notable shift away from its prior reliance on in-house research and open-source projects.

Founded in 2016, Scale AI supports the training of AI models through high-quality labelled datasets. It also provides a platform for AI research collaboration, now with contributors in more than 9,000 locations.

The company was last valued at nearly $14 billion following a 2024 funding round involving Meta and Microsoft.

Meta’s planned investment signals an aggressive expansion of its AI ambitions. Earlier this year, CEO Mark Zuckerberg announced up to $65 billion in AI spending for 2025. It includes Meta’s Llama chatbot, now embedded into Facebook, Instagram and WhatsApp, reaching one billion users monthly.

The move puts Meta in closer competition with Microsoft, which has committed over $13 billion to OpenAI, and Amazon and Alphabet, which are backing rival AI firm Anthropic. Scale AI declined to comment, while Meta has yet to respond publicly.

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Meta inks 20-year nuclear deal to power AI expansion

Meta has entered a landmark 20-year agreement with Constellation to purchase 1.1 gigawatts of nuclear power from the Clinton Clean Energy Center in Illinois, starting in 2027.

The deal is designed to support the company’s rapidly growing AI infrastructure and data centres as energy demands surge across the tech industry.

Once facing closure due to financial losses, the Clinton plant’s future is secure — without relying on Illinois’ Zero Emission Credit programme. The agreement will keep over 1,100 local jobs, boost grid capacity by 30 megawatts, and generate an estimated $13.5 million in annual tax revenue.

Illinois lawmakers have praised the deal for its economic and environmental benefits, with Republican Regan Deering calling it ‘a forward-thinking investment.’

The partnership is part of Meta’s broader strategy to build a nuclear-powered AI ecosystem. With clean energy targets of 1 to 4 gigawatts, Meta has been negotiating with multiple nuclear providers and says further agreements are in the final stages.

According to the International Atomic Energy Agency, global data centre energy use is set to more than double by 2030 — potentially outstripping Japan’s entire electricity consumption. Meta alone plans to invest $65 billion in AI infrastructure in 2025.

The Clinton plant deal also serves as a hedge against the environmental impact of fossil fuels. A 2024 study by the Brattle Group estimated that closing the facility would have led to an additional 34 million metric tons of carbon emissions over two decades. It would also have dealt an annual $765 million blow to Illinois’ GDP.

Constellation, the plant’s operator, said consistent, carbon-free baseload power is essential for the AI-driven future. With its reliability and scale, nuclear energy is increasingly seen as critical to supporting always-on AI systems.

Meanwhile, Meta continues advancing its AI vision. The company plans to fully automate ad creation by late 2026, generating images, videos, and text tailored to user location and timing.

This automation effort has already boosted ad performance, with Q1 2025 results showing a 30% rise in AI-generated ad use, a 10% increase in average ad prices, and $42.31 billion in revenue — a 16% year-over-year jump.

However, the push for AI-generated content has unsettled the advertising industry. Firms like Omnicom Group have seen share prices dip over fears disrupting to traditional creative and production models.

Zuckerberg’s long-term AI vision includes automating marketing and enhancing user experience through AI companions and virtual therapists — part of Meta’s goal to integrate machine learning into everyday life while ensuring its platforms run on clean, scalable energy.

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Eminem sues Meta over copyright violations

Eminem has filed a major lawsuit against Meta, accusing the tech giant of knowingly enabling widespread copyright infringement across its platforms. The rapper’s publishing company, Eight Mile Style, is seeking £80.6 million in damages, claiming 243 of his songs were used without authorisation.

The lawsuit argues that Meta, which owns Facebook, Instagram and WhatsApp, allowed tools such as Original Audio and Reels to encourage unauthorised reproduction and use of Eminem’s music.

The filing claims it occurred without proper licensing or attribution, significantly diminishing the value of his copyrights.

Eminem’s legal team contends that Meta profited from the infringement instead of ensuring his works were protected. If a settlement cannot be reached, the artist is demanding the maximum statutory damages — $150,000 per song — which would amount to over $109 million.

Meta has faced similar lawsuits before, including a high-profile case in 2022 brought by Epidemic Sound, which alleged the unauthorised use of thousands of its tracks. The latest claim adds to growing pressure on social media platforms to address copyright violations more effectively.

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AI to take over all Meta ads under new plan

Meta is preparing to transform digital advertising on its platforms, with reports indicating that by 2026, all adverts on Facebook and Instagram could be fully created and targeted using AI.

The company’s vision would see AI tools take over the entire process—from ad generation to audience selection—requiring advertisers to provide only a product image and budget.

Since introducing generative AI features for advertisers in May 2023, Meta has continued to expand its automation capabilities. Currently, AI plays a major role in targeting ads across Meta’s platforms.

Under the new system, Meta’s AI will go several steps further by generating text, visuals, and video, as well as optimising ad delivery for the most suitable audience.

The initiative is aligned with CEO Mark Zuckerberg’s broader vision of AI-led automation, especially within advertising—Meta’s financial backbone, which accounted for over 97% of the company’s revenue last year.

Speaking at Meta’s annual shareholder meeting, Zuckerberg outlined a future where businesses simply define their marketing goal and budget, link a payment method, and allow Meta’s AI to handle the rest.

The company is also developing real-time personalisation tools. These will allow the same ad to appear differently depending on a user’s location or context—for example, showing a car in snowy terrain to one user, while another might see it in an urban setting.

Meta is also exploring integration with third-party AI models such as DALL·E and Midjourney to further enhance creative capabilities.

This move follows similar developments by rivals like Google, which recently launched its Veo video generation model. With AI continuing to reshape the advertising landscape, Meta is betting on full automation as the next frontier in digital marketing.

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WhatsApp fixes deleted message privacy gap

WhatsApp is rolling out a privacy improvement that ensures deleted messages no longer linger in quoted replies, addressing a long-standing issue that exposed partial content users had intended to remove.

The update applies automatically, with no toggle required, and has begun reaching iOS users through version 25.12.73, with wider availability expected soon.

Until now, deleting a message for everyone in a chat has not removed it from quoted replies. That allowed fragments of deleted content to remain visible, undermining the purpose of deletion.

WhatsApp removes the associated quoted message entirely instead of keeping it in conversation threads, even in group or community chats.

WABetaInfo, which first spotted the update, noted that users delete messages for privacy or personal reasons, and leave behind quoted traces conflicted with those intentions.

The change ensures conversations reflect user expectations by entirely erasing deleted content, not only from the original message but also from any references.

Meta continues to develop new features for WhatsApp. Recent additions include voice chat in groups and a native interface for iPad. The company is also testing tools like AI-generated wallpapers, message summaries, and more refined privacy settings to enhance user control and experience further.

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NSO asks court to overturn WhatsApp verdict

Israeli spyware company NSO Group has requested a new trial after a US jury ordered it to pay $168 million in damages to WhatsApp.

The company, which has faced mounting legal and financial troubles, filed a motion in a California federal court last week seeking to reduce the verdict or secure a retrial.

The May verdict awarded WhatsApp $444,719 in compensatory damages and $167.25 million in punitive damages. Jurors found that NSO exploited vulnerabilities in the encrypted platform and sold the exploit to clients who allegedly used it to target journalists, activists and political rivals.

WhatsApp, owned by Meta, filed the lawsuit in 2019.

NSO claims the punitive award is unconstitutional, arguing it is over 376 times greater than the compensatory damages and far exceeds the US Supreme Court’s general guidance of a 4:1 ratio.

The firm also said it cannot afford the penalty, citing losses of $9 million in 2023 and $12 million in 2024. Its CEO testified that the company is ‘struggling to keep our heads above water’.

WhatsApp, responding to TechCrunch in a statement, said NSO was once again trying to evade accountability. The company vowed to continue its legal campaign, including efforts to secure a permanent injunction that would prevent NSO from ever targeting WhatsApp or its users again.

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Meta faces backlash over open source AI claims

Meta is under renewed scrutiny for what critics describe as ‘open washing’ after sponsoring a Linux Foundation whitepaper on the benefits of open source AI.

The paper highlights how open models help reduce enterprise costs—claiming companies using proprietary AI tools spend over three times more. However, Meta’s involvement has raised questions, as its Llama AI models are presented as open source despite industry experts insisting otherwise.

Amanda Brock, head of OpenUK, argues that Llama does not meet accepted definitions of open source due to licensing terms that restrict commercial use.

She referenced the Open Source Initiative’s (OSI) standards, which Llama fails to meet, pointing to the presence of commercial limitations that contradict open source principles. Brock noted that open source should allow unrestricted use, which Llama’s license does not support.

Meta has long branded its Llama models as open source, but the OSI and other stakeholders have repeatedly pushed back, stating that the company’s licensing undermines the very foundation of open access.

While Brock acknowledged Meta’s contribution to the broader open source conversation, she also warned that such mislabelling could have serious consequences—especially as lawmakers and regulators increasingly reference open source in crafting AI legislation.

Other firms have faced similar allegations, including Databricks with its DBRX model in 2024, which was also criticised for failing to meet OSI standards. As the AI sector continues to evolve, the line between truly open and merely accessible models remains a point of growing tension.

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German court allows Meta to use Facebook and Instagram data

A German court has ruled in favour of Meta, allowing the tech company to use data from Facebook and Instagram to train AI systems. A Cologne court ruled Meta had not breached the EU law and deemed its AI development a legitimate interest.

According to the court, Meta is permitted to process public user data without explicit consent. Judges argued that training AI systems could not be achieved by other equally effective and less intrusive methods.

They noted that Meta plans to use only publicly accessible data and had taken adequate steps to inform users via its mobile apps.

Despite the ruling, the North Rhine-Westphalia Consumer Advice Centre remains critical, raising concerns about legality and user privacy. Privacy group Noyb also challenged the decision, warning it could take further legal action, including a potential class-action lawsuit.

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