On June 13, Meta, the parent company of Facebook, announced a 14.8 billion dollar investment in Scale AI and the hiring of the data-labeling startup's CEO. This move is expected to test how the Trump administration handles so-called "acquihire" deals, which some critics claim are structured to avoid regulatory oversight.

This deal, Meta’s second-largest, gives the company a 49 percent nonvoting stake in Scale AI. Scale provides data-labeling services using gig workers and works with clients including Meta’s competitors, such as Microsoft and OpenAI. Because Meta did not acquire a controlling stake, the transaction does not automatically require a U.S. antitrust review, but regulators could still investigate if they suspect the deal was crafted to bypass rules or limit competition.

The agreement appears to be structured in a way that avoids concerns like blocking competitors from Scale’s services or giving Meta access to rivals' confidential information. Still, Reuters reported that Google has ended its relationship with Scale due to Meta’s investment, and other clients may also reconsider their ties.

Scale AI’s spokesperson said the company’s business remains strong, and it is committed to protecting client data, but declined to comment specifically on Google. Alexandr Wang, Scale’s CEO, will join Meta as part of the deal but will stay on Scale’s board with restricted access to sensitive information, according to two sources. Experts believe major tech firms see a more flexible environment for AI deals under President Trump than under former President Biden. William Kovacic, a law professor, noted that while Trump’s team may be less likely to regulate AI development, they still watch big tech companies closely.

Earlier FTC probes into similar "acquihire" arrangements, like Amazon’s hiring of top talent from AI startup Adept and Microsoft’s 650 million dollar deal with Inflection AI, have largely stalled. The FTC has not yet taken action against Microsoft more than a year after it began looking into the Inflection case. A source confirmed that Amazon’s deal went ahead without intervention, and the FTC declined to comment on the matter. Legal experts, like Boston College professor David Olson, believe Meta’s decision to take a nonvoting minority stake gives it legal protection, though scrutiny is still possible.

Senator Elizabeth Warren criticized the deal, urging antitrust officials to investigate if it reduces competition or gives Meta unfair dominance. Meanwhile, Meta is already facing a monopoly lawsuit by the FTC. In a related matter, the U.S. Department of Justice is examining whether Google’s partnership with Character.AI was set up to sidestep antitrust review. The DOJ also wants Google to notify it before making future AI investments as part of broader efforts to limit its influence in online search.