Meta paid $14.3 billion to acquire 49% of Scale AI, the company that built its entire business paying people to label training data for AI models. The 28-year-old CEO of that company, Alexandr Wang, joined Meta as its Chief AI Officer as part of the deal. Then Meta drafted 6,500 of its own engineers to do the same work Scale AI was built to handle.
Scale AI ran data labeling for OpenAI and Google. Its business: recruit workers globally, pay them to tag images and write training examples, and sell that labeled data to AI labs. Meta's $14.3 billion investment was the second-largest deal in company history, behind only the $19 billion WhatsApp acquisition. The engineers Wang now oversees are doing what Scale AI's workers did, writing coding puzzles and logic problems, two tasks per week, with no option to transfer to a different team and no way out besides quitting.
There is a financial argument, and Zuckerberg made it himself. In a recorded internal meeting, he said the average Meta engineer has "significantly higher" intelligence than outside contractors, making them a better source of training data. A Meta software engineer earns roughly $450,000 in total compensation per year, around $215 an hour. US data labeling firms charge $20 to $30 an hour for complex coding work. But those are general workers. Meta's engineers spent years building systems used by billions of people. Their puzzles carry specialist knowledge an outside worker simply does not have.
The bigger picture is harder to defend. Meta is spending $125 to $145 billion on AI infrastructure this year, nearly double its 2025 total of $72 billion. Reality Labs, the division that ran the metaverse, lost $83.5 billion over six years. The man running the Applied AI unit, Maher Saba, was a vice president in that same division. Meta's first model designed to compete with the best AI in the world, Muse Spark, launched in April and still trails OpenAI and Anthropic.
The gap between where Meta's models sit and where they need to be is why engineers are writing puzzles instead of building products. To train a competitive AI model, you need two things: computing power, which Meta is buying by the hundreds of billions, and expert human training data. Meta is getting the second one from engineers already on its payroll. An engineer already drawing a salary costs nothing extra to redirect.
When 1,600 employees signed a petition against a keystroke tracker that only lets them pause it for 30 minutes, the math stopped being the whole story.
META IS AN ABSOLUTE MESS INSIDE RIGHT NOW
Wired just dropped an exclusive, and the details are wild.
This week someone interrupted a livestreamed Meta meeting, open to thousands of employees, with an expletive-filled rant about "being the company's bitch." They told the presenters to find a specific Meta AI executive and "tell him that he's a piece of shit."
A presenter covered their face with their hands. Employees in the chat called the start "spicy."
Here is what's behind it.
Meta's AI restructuring cut 8,000 jobs last month, 10% of the company. The same restructuring feeds a unit called Applied AI, where 6,500 engineers and product managers have been drafted in waves since April. There is no application process. You get selected, and your options are join or leave the company. Members call themselves "draftees."
The new job: writing puzzles and coding problems to train Meta's AI models, two tasks a week. People hired to build apps for billions of users now assemble training data for hundreds of AI scientists.
"It's literally the gulag," one employee told WIRED. "You have zero purpose in life all of a sudden, you barely interact with anyone, you just have these tasks every week."
Another: "Most people find the work soul-crushing."
At the same time, Meta started recording US employees' clicks and keystrokes to generate more AI training data. Over 1,600 employees signed a petition demanding it stop. The concession: employees can pause the tracking for up to 30 minutes.
Zuckerberg's response came in an internal memo Friday: "We've made mistakes and will almost certainly make more." He repeated his promise of no more mass layoffs this year. His fixes: limits on the manager ratios Meta had deliberately pushed to 50-to-1 on some teams, bigger budgets for team events, a hackathon next month, and assigned desks by the end of the year.
That same memo says Meta's north star is "to be the best place for the most talented people in the world to make an impact."
The most talented people in the world are writing puzzles for a model and asking permission to pause the keystroke logger.
META declined to comment.