Groups say investment is a “de facto acquisition” designed to avoid scrutiny.

A coalition of advocacy organizations is calling on the Federal Trade Commission (FTC) to investigate Meta Platforms Inc.’s recent $14.3 billion investment in artificial intelligence company Scale AI, citing concerns over potential antitrust violations and market consolidation.

According to reporting by The Information and Bloomberg, Meta acquired a 49% non-voting stake in Scale AI in June 2025. As part of the transaction, Scale AI’s CEO, Alexandr Wang, joined Meta to lead its newly formed Superintelligence Labs division. The deal was structured to avoid triggering mandatory pre-merger notification under the Hart-Scott-Rodino Act, which generally applies to acquisitions of 50% or more of a company’s voting securities.

In a letter addressed to FTC Chair Andrew Ferguson, 11 advocacy groups—including Public Citizen, the Tech Oversight Project, and the Consumer Federation of America—argued that the transaction amounts to a “de facto acquisition” and urged the agency to open a formal investigation. The groups allege that Meta’s investment gives it significant influence over Scale AI’s operations and strategic direction, despite the absence of voting control.

The “functional equivalent of a merger.”

“Meta’s investment appears to be structured to evade regulatory scrutiny while still achieving the functional equivalent of a merger,” the letter stated.

The groups also raised concerns about the broader implications of the deal for competition in the AI and digital advertising markets. Meta is already the subject of ongoing antitrust litigation brought by the FTC and state attorneys general, and critics argue that the Scale AI partnership could further entrench its dominance by giving it privileged access to proprietary training data and AI infrastructure.

According to Bloomberg, the FTC has previously warned that partnerships between dominant tech firms and AI startups could raise competition concerns, particularly when they involve access to sensitive data or key personnel. While the agency has not publicly commented on the Meta-Scale AI deal, observers expect it to closely monitor the situation.

What Meta Says

In response to the criticism, a Meta spokesperson told The Information that the company is “deepening the work we do together producing data for AI models,” and confirmed that Wang is now leading Meta’s superintelligence efforts.

The investment has already had ripple effects in the industry. Bloomberg reported that Google has severed ties with Scale AI following the announcement, citing concerns about data sharing and competitive neutrality. Other clients are reportedly reevaluating their relationships with the company.

The advocacy groups’ letter underscores growing scrutiny of strategic investments in the AI sector, particularly those involving dominant technology platforms. Whether the FTC will act on the request remains to be seen.

The Shopping Continues

As we have previously reported, the acquisition and investment in AI technology companies has been going on for more than a decade, longer depending on how you define AI.