The $14.8 billion investment in Meta’s scale AI, as well as the employment of startup CEOs, is focusing on how US regulators handle Ackihire-style transactions under the Trump administration.
With this agreement, Meta gives 49% non-voting rights on scale AI. This will hire gig workers and label the training data for your AI systems. Scale’s clients include Microsoft and Openai, two of Meta’s major competitors in AI space.
Meta has not purchased control shares, so this transaction avoided automatic antitrust reviews. But if regulators believe that the structure is designed to undermine scrutiny and competition, they can still look into it.
Access and fairness concerns
Some early signs of fallout have already surfaced. Google, one of Scale’s customers, reportedly cut ties with the company after Meta’s shares were announced. Others are said to be reconsidering the contract.
In response, a Scale spokesman said the company’s work remains strong and is committed to protecting its customer data. They declined to comment on Google’s decision.
Scale’s 28-year-old founder and CEO Alexandr Wang will join Meta as part of the deal. He remains on a board of size, but according to people familiar with the arrangements, he has no complete access to company information.
Regulation outlook under Trump
The Trump administration has taken a lighter approach to AI regulations. Authorities have also expressed doubts about the power held by large tech companies, but say they don’t want to interfere with how AI develops.
William Kovacic, a law professor at George Washington University, said it is likely that regulators are watching AI trade closely, even if they are not blocking them. “That doesn’t necessarily mean they’re going to intervene, but they’ll pay attention to what these companies are doing,” he said.
The Federal Trade Commission (FTC) has been considering similar transactions over the past two years. Under the Biden administration, the FTC launched a study into the hiring of Amazon’s major talent from AI company Adept and Microsoft’s $650 million contract with AI, accessing the company’s models and staff.
Amazon’s transactions have been closed without further action, and while FTC has not taken any public action against Microsoft, the company’s broader investigation continues.
Legal edge and political pressure
Some legal experts say that Meta’s approach could reduce legal exposure. David Olson, an antitrust professor at Boston College, said minority stocks provide “many protections,” but the FTC can investigate the deal even if it raises concerns.
Not everyone is sure this transaction is harmless. Sen. Elizabeth Warren, who has pushed for more stringent surveillance on the AI partnership, said meta investments should be reviewed closely. “Meta can call this deal anything,” she said. “But if you break the law by reducing competition or making it easier for the meta to control, regulators will have to step in.”
Meta is facing antitrust laws raised by the FTC, which argues that it has built its monopoly through acquisitions and platform control. It is unclear whether the agency will also consider involvement in scale.
Meanwhile, the Department of Justice is delving into Google’s AI investment. According to BloombergDOJ reviews its partnership with Google and Character.ai to see if it is configured to dodge anti-trust reviews. Authorities are also asking for rules that will force Google to disclose new AI investments in advance.
Wideer pattern
Metascale trading fits the broader trend of using investment and talent transactions to lock access to key AI tools and people without causing full-scale anti-trust reviews.
As more money moves to AI and more partnerships form, regulators will need to decide whether these transactions are legitimate business decisions or attempts to skirt the rules. For now, the answer may depend on how much power the company gains, without having to buy control.
(Photo: Dima Solomin)
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