A $14 Billion AI Power Play Could Skyrocket This Stock Many Of You Own!
How Meta's $14B purchase of Scale AI makes Nebius a new leader.
Mark Zuckerberg is writing a $14 billion check.
Not for another social media company.
Or advertising tech.
This time …
He’s making a major bet on AI.
The staggering sum is for a company most people never heard of.
But it has high profile clients like Amazon, Microsoft, and Google.
Enter Scale AI.
It may not be well-recognized like ChatGPT.
But Meta recognizes that Scale is vital for building AI models.
This isn’t just about business.
Scale AI CEO Alexandr Wang is the key to the deal.
His talents are highly regarded across tech.
And Mark Zuckerberg is putting him in charge of a newly formed AI research lab.
It’s focused on developing “superintelligence”
AI systems that surpass human abilities across a wide range of tasks.
But this acquisition is more than just AI and talent.
It’s about control.
Meta knows with Scale AI technology and wonder-kid Alexandr Wang running Meta’s new lab …
It can become a leader in AI.
Big-Tech has seen this blueprint before.
A megafirm like Meta buys a smaller company.
Folds its leadership and technology into its ecosystem.
Leaving anyone relying on the company scrambling to find a new alternative.
Enter Nebius NBIS 0.00%↑
Nebius core business is developing and operating a global network of data centers.
But if you take a deeper look at Nebius …
You’ll see something interesting brewing.
Nebius has been investing in AI-related startups for the past several years.
One of these companies is Toloka.
It operates a platform that specializes in data annotation.
This is exactly what Meta wrote a $14B check for.
Scale AI is a direct competitor to Toloka.
Both companies have been growing rapidly due to insatiable demand for actionable data.
Here’s where the story gets interesting.
By writing a $14B check for Scale instead of buying the entire company, Meta hopes competitors will continue using Scale’s data annotation and labeling platform.
But I believe that’s just wishful thinking.
Scale customers that compete with Meta will start looking to other providers.
Providers such as Toloka.
The wheels are already be in motion.
Amazon AMZN 0.00%↑ founder Jeff Bezos and Shopify SHOP 0.00%↑ CTO Mikhail Parakhin recently made sizable investments in Toloka.
Here’s what Toloka said about new strategic financing:
"This investment marks a pivotal moment for Toloka as we enter a new phase of growth. With strong financial backing from strategic investors who deeply understand the AI landscape, we're now positioned to significantly scale our technological innovations at the critical intersection of human expertise and AI capabilities.”
With Meta altering the competitive landscape with its big investment in Scale.
Toloka could become the go-to source of data preparation for big tech companies.
Since Nebius still owns a majority stake in Toloka, the company stands to benefit meaningfully.
With investors chasing recent hot IPO Coreweave CRWV 0.00%↑ the big money is making moves in Nebius.
It doesn’t get any bigger than Jeff Bezos.
I like to side with the big money.
And I think you should too.
Your personal small cap research analyst,
John McHugh
Follow me on X: https://x.com/satoritrade