Deep|The Scale AI Halo Effect: Will Meta's Investment Lift the Other Boats, or Just the Leader?

Will They Flow to INOD and NBIS?

In this report, we will analyze ScaleAI's business segments, the barriers to entry for different business lines, and what distinguishes ScaleAI from other data labeling companies. Since META is acquiring ScaleAI, we'll examine how much of ScaleAI's order volume might flow out to other data labeling companies, and which companies might capture ScaleAI's orders.

It's beneficial for other industry players, but it's uncertain whether Innodata(INOD)and Nebius's Toloka(NBIS)will significantly profit

• Recent dynamics appear to be shifting in favor of LLM data labeling providers beyond Scale AI, as customers explore greater diversification across vendors and reevaluate pricing, scalability, and data security trade-offs.

• That said, the outlook remains highly uncertain for second-tier players such as Innodata and Nebius’s Toloka. While both exhibit significant operating leverage—with 2025 revenue estimates ranging from $100 million to $300 million—even a single large contract in the tens of millions could meaningfully impact overall topline performance.

• We believe more evidence is needed to underwrite a sustained inflection in fundamentals, and we will continue to monitor developments closely.

"XX": quotes from our surveys or interviews

Scale AI's Business

A Brief Introduction of Scale AI's Business