Not a 'Zombie Company': Scale AI's CFO Says People 'Mischaracterize' Deal That Sparked Founder Joining Meta, Boasts Misunderstood Trajectory
- - Not a 'Zombie Company': Scale AI's CFO Says People 'Mischaracterize' Deal That Sparked Founder Joining Meta, Boasts Misunderstood Trajectory
[email protected]November 11, 2025 at 7:01 PM
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Not a 'Zombie Company': Scale AI's CFO Says People 'Mischaracterize' Deal That Sparked Founder Joining Meta, Boasts Misunderstood Trajectory
The artificial intelligence industry was sent into a tailspin in June when Meta announced a staggering $14.3 billion investment in Scale AI. The deal, widely seen as an elaborate scheme to hire the startup’s founder Alexandr Wang and key personnel, CNBC reported, left observers questioning whether the company could survive.
Scale AI CFO Dennis Cinelli is now presenting a dramatically different narrative about the company’s trajectory and health amid persistent public uncertainty.
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OpenAI and Others Distance Themselves
The transaction immediately triggered a wave of uncertainty across the tech sector. Industry giants began reevaluating their partnerships with the data preparation specialist, raising serious doubts about the company’s viability as an independent entity.
OpenAI moved quickly to distance itself from Scale, saying it had been reducing its collaborative efforts with the startup that specializes in preparing data that artificial intelligence laboratories and major technology firms utilize for model training, according to CNBC.
CFO Defends Company’s Health Five Months Later
Nearly five months have passed since the gamble that many outlets reported triggered Meta CEO Mark Zuckerberg dropping two spots on Bloomberg’s Billionaires Index shocked Silicon Valley.
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“The results we’re putting up, it’s not a company that’s like a zombie company,” Cinelli told CNBC earlier this month. Cinelli insists the company, which employs more than 1,000 workers, remains operational and thriving. He joined Scale in 2022 and witnessed the company navigate this turbulent period firsthand.
“People mischaracterize this deal as some sort of acquihire or some sort of licensing deal, which is not true,” Cinelli said. “We’re a company that has signed some of the best deals we have had in the history of our company, just in the last two, three months.”
Government Contracts Signal Continued Confidence
Scale launched in 2016 and built its reputation through its data business operations. The company faces competition from rivals including Appen, Surge AI, and Mercor in the segment. Scale also operates an applications division that develops customized solutions for government agencies and large corporations seeking to implement AI technology. This segment has attracted significant government attention and funding.
The U.S. Department of Defense awarded Scale a $99 million contract in August, Scale previously disclosed. A second government contract worth $100 million followed in September.
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Revenue Growth and Client Relationships
Both business divisions are experiencing expansion, according to Cinelli. He told CNBC revenue has reached “well into the nine figures,” though he declined to provide further detail.
Cinelli maintains that Scale continues partnerships with “all the major AI labs and tech companies,” though he declined to identify specific clients to CNBC. “We had conversations, everyone had questions, naturally,” he said. “We’re still an independent company, we’re not captive to Meta, we’re still in business with all our customers. Once we’ve gone through those conversations, I think everyone kind of understood.”
Questions Persist About Executive Transitions
Cracks were apparent amidst Meta's newfound partnership, TechCrunch reported in August. Ruben Mayer, who previously served as Scale AI’s senior vice president of GenAI Product and Operations, spending approximately five years with Scale AI across two separate periods of employment, according to TechCrunch. However, his tenure at Meta proved remarkably brief. Mayer contested certain details regarding his position at Meta, telling TechCrunch his initial role focused on “to help set up the lab, with whatever was needed” rather than data operations specifically. He claimed he was “part of TBD Labs from day one” rather than being excluded from the core AI division.
Mayer supervised AI data operations teams during his short time at Meta but was not assigned to TBD Labs, the central unit within Meta responsible for developing AI superintelligence where former OpenAI researchers have joined, according to TechCrunch.
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