The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Scale's $14.8BN Acquisition: Is Scale a Dead Man Walking / What Did Meta Buy | Chime IPO: Are IPOs Hotter Than Ever | Ramp Hits $16BN Diluting Only 1% | Salesforce, Slack and Dropbox Falling Behind: Are Incumbents Losing Ground
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Jun 19, 2025 In a deep dive into Meta's $14.8 billion acquisition of Scale, experts discuss the potential fallout and whether Scale can sustain its $800 million ARR. The conversation shifts to Chime's IPO and the resurgence of IPOs in the market. Ramp's remarkable $16 billion valuation catches attention, raising questions about fintech competition. Legacy companies like Salesforce and Dropbox grapple with innovation challenges. Predictions swirl around China's AI dominance and market shifts, painting a dynamic picture of the tech landscape.
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Meta's Scale AI Deal is About Talent
- Meta's $14.8 billion acquisition of Scale AI is mostly a talent and messaging play rather than a revenue-generating deal.
- The deal returns most cash to prior investors, leaving Meta with 49% non-voting control of a declining revenue business.
Handshake's Surge Post-Scale Deal
- Garrett from Handshake shares their business saw demand triple after Scale's acquisition news.
- Their main constraint now is hiring enough experts to meet increased volume and complex AI training needs.
Scale AI Faces Survival Challenges
- Scale AI is unlikely to recover after losing its founders and having a competitor own nearly half the company.
- This deal signals difficulty retaining customers who are also competitors in AI model building.