Meta Platforms Inc. (NASDAQ:META) held acquisition discussions with artificial intelligence video startup Runway before completing its $14.3 billion investment in Scale AI.
What Happened: The talks between Meta and Runway, known for AI video-generation tools, did not advance significantly and ultimately dissolved, CNBC reported, citing sources.
The approach represents part of CEO Mark Zuckerberg‘s aggressive push to strengthen Meta’s AI capabilities amid intensifying competition in the artificial intelligence sector. The social media giant secured a 49% stake in Scale AI in June and recruited founder Alexandr Wang along with several employees.
Meta has pursued multiple AI acquisition targets this year, including approaches to Safe Superintelligence and Perplexity AI, the report noted.
While the company failed to acquire Safe Superintelligence outright, it successfully recruited CEO Daniel Gross and former GitHub CEO Nat Friedman to join its AI division under Wang’s leadership.
Meta and Runway did not immediately respond to Benzinga's request for comment.
See Also: What’s Next For Apple -- Chamath Palihapitiya Fires Back: ‘Don’t Think They Have Any Chance Of Anything,’ Dismisses Glasses And AI Hopes
Why It Matters: The acquisition strategy comes as Meta deepens its defense technology partnerships. The company recently announced a collaboration with Anduril Industries to develop augmented reality devices for the U.S. Army, submitting a joint bid for contracts worth up to $100 million as part of a $22 billion military modernization initiative.
Price Action: Meta stock closed at $698.53 on Monday, up 2.37% for the day. In pre-market trading on Tuesday, the stock rose further to $704.19, gaining an additional 0.81%. Year to date, Meta shares are up 16.57%.
Benzinga Edge Stock Rankings indicate a consistent upward trend for META over the short, medium, and long term. You can explore more detailed performance insights here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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