Information on the Target

Scale AI is a premier platform specializing in data preparation, AI model training, and the development of custom artificial intelligence applications. Renowned for its pivotal role within the AI ecosystem, the company offers a comprehensive suite of solutions that underpins operations for numerous prominent technology firms.

As of 2023, Scale AI reported impressive key metrics, including an Annual Recurring Revenue (ARR) of $675 million—a remarkable growth of 150% year-over-year—and a gross margin of approximately 60%. The company serves over 200 enterprise clients, among them notable names such as Microsoft, Meta, Nvidia, Toyota, Airbnb, and OpenAI. Scale AI's advanced technologies are implemented across various sectors, from automotive to government, thereby facilitating automated data labeling, AI model testing and optimization, and secure integration into existing business processes.

Industry Overview in the Target’s Specific Country

The artificial intelligence industry is experiencing rapid advancements in the United States, with significant investments and innovations stemming from both startups and established tech giants. The increasing reliance on AI technologies across diverse industries is propelling growth and inspiring new applications that enhance productivity.

In recent years, the U.S. government has recognized the importance of AI by introducing regulatory frameworks that foster innovation while ensuring ethical considerations are met. This supportive environment has encouraged countless businesses to integrate AI into their operational frameworks, leading to a surge in demand for high-quality data preparation solutions.

Moreover, the competition within the AI arena is intensifying, as major players strive to enhance their offerings and capture market share. Companies are focusing on developing more sophisticated AI models, which necessitates exceptional data management and preparation services—areas where Scale AI excels.

The trend towards automation and efficiency is expected to drive further growth in the U.S. AI sector. As corporate budgets for AI implementations continue to expand, businesses are more inclined to invest in established technology leaders that can provide comprehensive solutions tailored to their specific needs.

The Rationale Behind the Deal

A strategic decision was made to invest in Scale AI in early 2024, prior to their Series F funding round. By May 2024, the company successfully raised $1 billion, resulting in a valuation of $13.8 billion. Following this, in June 2025, Meta executed a significant investment of $14.3 billion for a 49% equity stake in Scale AI, elevating the company’s valuation to approximately $29 billion. This transaction underscored the strategic importance of Scale AI in the marketplace and cemented its status as a leading entity within the artificial intelligence sector.

Information about the Investor

Axevil Capital is a forward-thinking investment firm with a focus on late-stage transactions in the technology growth sector. The firm is dedicated to supporting innovative companies that are poised to reshape their respective industries. Our strategic investments target businesses that exhibit strong growth potential and a clear path to leadership in their fields.

The investment in Scale AI aligns with Axevil Capital's mission of participating in impactful technology deals that yield substantial returns. By backing Scale AI, we gain exposure to an essential player in the thriving artificial intelligence ecosystem, reinforcing our commitment to supporting companies advancing technological progress.

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In our expert opinion, this investment in Scale AI represents a significant opportunity in the artificial intelligence domain. The company's robust infrastructure in data labeling and management situates it as a critical asset for any organization looking to implement AI solutions effectively.

The comprehensive nature of Scale AI’s service offerings—from dataset preparation through to business process integration—positions the company as a one-stop solution for clients aiming to enhance their AI capabilities. This strategic approach not only attracts large enterprise clients but also fosters long-term partnerships with major AI developers.

Furthermore, the establishment of vertical-specific solutions, such as Donovan for government and Forge for marketing, exemplifies Scale AI’s commitment to addressing unique industry needs. This targeted approach is expected to expedite AI adoption across various sectors, thereby amplifying market demand for its services.

Given the continuous rise in corporate budgets allocated for AI implementation, Scale AI is well-positioned to capitalize on this trend, leading to sustained growth. Therefore, we believe this investment could yield substantial returns as the demand for scalable AI solutions intensifies.

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