Facebook-parent Meta held talks with Runway before investing in Scale AI: Report

Facebook-parent

Meta

was in talks to acquire AI video startup

Runway

before finalizing its $14.3 billion investment in

Scale AI

, reports CNBC. Citing sources familiar with the matter, the report says that the talks with Runway – known for developing AI-powered video generation tools, did not progress and were eventually dropped. The outreach was part of Meta CEO Mark Zuckerberg’s wider efforts to strengthen Meta’s artificial intelligence portfolio. Earlier this month, Meta invested $14.3 billion in data-labeling startup Scale AI, taking a 49% stake in a deal. As part of the agreement, Scale’s 28-year-old co-founder and CEO, Alexandr Wang, will join Meta to lead its new superintelligence unit, a major shift in the tech giant’s AI strategy.Other than ScaleAI and Runway, the company has also shown interest in other AI startups this year. The company reportedly approached Safe Superintelligence and Perplexity AI, although it was unable to acquire Safe Superintelligence outright. However, the social media giant managed to hire Daniel Gross, CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman to join its AI team under Wang’s leadership.The company’s push into AI also ties into its work with the U.S. defense sector. Meta recently teamed up with Anduril Industries to develop augmented reality devices for the U.S. Army. The companies have submitted a joint bid for contracts worth up to $100 million under a broader $22 billion military modernization program.