Meta's AI Lab Gambit: A Gold Rush for Infrastructure Plays?

Wesley ParkTuesday, Jun 10, 2025 10:36 am ET
26min read

The tech world is buzzing about Meta's $10 billion bet on Scale AI, a partnership that could redefine the AI infrastructure market. This isn't just another Silicon Valley deal—it's a signal that the race for AI dominance is now about control of the supply chain, not just algorithms. Let's dig into why this matters for investors and which stocks are primed to explode.

Why Vertical Integration Is the New Holy Grail

Meta's pivot toward vertical integration—owning key pieces of the AI supply chain—is a tectonic shift. Scale AI, led by founder Alexandr Wang, specializes in data annotation: the “fuel” that trains AI models. By securing this resource,

Meta
cuts reliance on rivals like Microsoft Azure or Amazon Web Services, which dominate cloud infrastructure. This isn't just about saving costs; it's about controlling the choke points in the AI ecosystem.

The implications are clear: the “AI stack” (data, compute, algorithms) is now a battleground. Companies that supply this stack—semiconductors, data centers, and specialized cloud services—are suddenly in the crosshairs of every tech giant.

The Immediate Winners: GPU Makers and Data Center Kings

Let's start with the obvious: NVIDIA (NVDA). Meta's investment in Scale AI won't mean much without the hardware to run its models. Meta already has 350,000 of NVIDIA's H100 chips, and this deal will only amplify demand.

But the boom isn't limited to GPUs. Data center operators like Equinix (EQIX) and cloud providers like Google Cloud (GOOGL) are also critical. Scale AI's global workforce of 100,000+ contractors—annotating everything from medical scans to military scenarios—requires massive compute power. Even IBM (IBM) could benefit, as its partnerships with defense contractors like Anduril (a Meta collaborator) expand.

The Defense Angle: A New Gold Mine for AI

Meta's partnership with Scale AI isn't just about consumer apps like Instagram. The duo is targeting military-grade AI via projects like the Defense Llama, part of the Pentagon's Thunderforge initiative. This isn't just about profit—it's about national security.

Governments worldwide are pouring money into AI defense systems, creating a $2.3 trillion market by 2030. Companies like Lockheed Martin (LMT) and Boeing (BA) are already teaming up with AI startups. For investors, this means betting on AI infrastructure that can handle classified data—think Palantir (PLTR) or CrowdStrike (CRWD).

Risks? Yes. But the Upside Is Massive

Regulatory pushback is a concern. The EU's Digital Markets Act could penalize Meta for leveraging Scale AI's data as a competitive weapon. Meanwhile, Scale's global workforce (including workers in Kenya and the Philippines) faces labor scrutiny.

Yet these risks are priced into stocks like META—which trades at a discount to its AI peers. The real opportunity is in the supply chain, where companies profit regardless of Meta's regulatory headaches.

Cramer's Call: Load Up on Infrastructure

This isn't a “buy Meta” story—it's a “buy the tools Meta needs” story. Here's how to play it:

  1. NVIDIA (NVDA): The undisputed king of AI chips. Buy the dips.
  2. Equinix (EQIX): Data center real estate in a world hungry for compute.
  3. Scale AI (private): Not investable yet, but keep an eye on its valuation—it could hit $25 billion post-Meta deal.
  4. Micron (MU): AI needs memory—Micron's DDR5 and HBM chips are critical for training models.

Avoid pure-play software AI stocks like C3.ai (AI) unless they own hardware partnerships.

Final Word: The AI Gold Rush Is Here

Meta's move isn't just about one lab—it's about owning the means of AI production. Investors who ignore the infrastructure boom are leaving money on the table. This is the moment to stack your portfolio with companies that build the roads, servers, and chips for the AI economy.

The next trillion-dollar companies won't be the AI algorithms—they'll be the ones powering them.

Disclosure: This analysis is for informational purposes only. Consult a financial advisor before making investment decisions.