💵 Meta is going to lose billions

Today, we’re looking at two very different visions of AI execution: Meta’s $14B partnership is already unraveling, while Cloudflare is quietly solving real-world problems with AI. One story is about dysfunction at the top of the AI hype cycle.

In today’s post:

• Meta’s $14B AI Bet Is Already Cracking

• Cloudflare Launches AI Tools to Fix Network Issues Faster

• School Isn’t Ready for AI but Students Are

What’s Trending Today

STRATEGY

Meta poured billions into Scale AI. Now it’s backing away

In June, Meta invested $14.3 billion in Scale AI to boost its superintelligence ambitions. Just two months later, the cracks are already showing.

Here’s everything you need to know:

• One key exec from Scale AI has already exited Meta after just weeks on the job.

• Meta is quietly using rival vendors like Surge and Mercor to label training data.

• Some Meta researchers call Scale’s data “low quality” despite the massive investment. Scale’s crowdsourcing model struggles to meet today’s demand for expert data.

• Meta insiders say bureaucracy is frustrating top AI hires from OpenAI and Scale. High-profile departures suggest internal chaos inside Meta’s AI lab.

• After losing OpenAI and Google, Scale laid off 200 workers this summer.

This isn’t just about a rocky partnership. It’s a reminder that in AI, money can’t always buy alignment or talent retention. For Meta, the race to build superintelligence might be moving too fast for its own infrastructure to keep up.

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

No wonder 10K+ everyday people are taking the chance on Pacaso.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Invest While You Still Can

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

UPDATE

Network down? Now AI helps fix it before IT even logs in

Cloudflare just rolled out two new AI tools to troubleshoot network performance.
The goal: empower IT teams to solve issues in minutes not hours.

Here’s everything you need to know:

• The new WARP Diagnostic Analyzer uses AI to interpret device logs and surface root causes fast.

• Instead of sending logs to support, admins can now get instant analysis inside the Zero Trust dashboard.

• It flags common connectivity problems, explains them clearly, and offers fixes.

• A second tool, the DEX MCP Server, answers plain-language questions with real-time device diagnostics.

• Ask it, “Why is Alice’s laptop slow?” and it returns graphs, performance metrics, and suggested remedies.

• This removes the need to build custom dashboards or route through complex SIEM tools.

• Both tools are available now to all Cloudflare One customers for free.

This is the future of IT, AI that works quietly behind the scenes, turning logs into answers and friction into insight. Less time parsing error codes. More time fixing what matters.

RESEARCH

AI didn’t ruin school. It revealed what was already broken.

Generative AI hasn’t just entered the classroom, it’s redefined it. For high school and college seniors, tools like ChatGPT aren’t new. They’re normal.

Here’s everything you need to know:

• Today’s seniors have never known school without AI, it’s been there the whole time.

• Students use it for everything: essays, homework, even life advice.

• Meanwhile, most teachers are still figuring out if they should be worried.

• This normalization has exposed a gap: schools are moving slower than students.

• The real issue isn’t AI, it’s the system’s unacknowledged “pedagogical debt.”

• Classes too big, assignments that need feedback, and outdated methods have piled up.

• AI didn’t cause this chaos, it just made the cracks impossible to ignore.

AI’s rise in education isn’t the core disruption, it’s the mirror. Students are simply using the tools that work. If schools want to catch up, they’ll need to do more than block ChatGPT. They’ll need to rethink what learning is actually for.

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