Meta reportedly is planning to invest around $14.8 billion for a 49% stake in Scale AI, with the startup's CEO to join a new AI lab that Mark Zuckerberg is personally staffing.

• When the news broke yesterday, albeit still unconfirmed by either side, lots of commenters suggested that the unusual structure was to help Meta sidestep antitrust scrutiny.
• Not so fast.

What to know: U.S. antitrust regulators at the FTC and DOJ do have the authority to investigate non-control deals, even if it's been rarely utilized.

• That's true under both Sections 7 and 8 of the Clayton Act, which focus on M&A and interlocking directorates, respectively.

Catch up quick: The FTC in early 2024 launched an inquiry into AI investments and partnerships, and later reportedly opened an investigation into Microsoft that included its minority investments in OpenAI.

The big picture: The Trump administration has a more laissez-faire attitude toward AI oversight than did its predecessor, but that doesn't necessarily extend to letting Big Tech grow more powerful. Particularly via inorganic means.

• At some point, it's likely to try making an example of someone — to nip this non-control M&A trend in the bud.
• Meta may be a juicy target, given laments and litigation over how it was allowed to acquire Instagram and WhatsApp without regulatory pushback.

Yes, but: Meta isn't viewed as anything close to an AI market leader, despite its vast resources and open-source Llama models, as Axios' Ina Fried writes.

• She adds that Scale AI is "an unusual target" for superintelligence, having "built its business by focusing on the more manual tasks of AI — using humans to label data."

What we're watching: The final deal terms between Meta and Scale AI, which previously raised $1.6 billion from venture capitalists, and any PR language around possible legal challenges.

Cyera, an Israeli data security company, has raised $540 million in Series E funding at a $6 billion valuation.

Why it's the BFD: Enterprise AI adoption is increasing data exposure risks.

Zoom in: Georgian, Greenoaks, and Lightspeed co-led the round, and were joined by insiders Accel, Coatue, Cyberstarts, Redpoint, Sapphire Ventures, Sequoia Capital, and Spark Capital.

• Cyera now has raised around $1.25 billion in total funding, including a $300 million Series D round last fall at a $3 billion valuation.

The bottom line: Pick an exit, any exit.

• Wall Street understands the cybersecurity story well, and is sure to be intrigued by an IPO from a large player that can benefit from the AI boom.
• Big Tech also wants to fortify its own AI defenses, as evidenced by Google's recent $32 billion deal for Wiz.

• Glean, a Palo Alto, Calif.-based AI enterprise search startup, raised $150m in Series F funding at a $7.2b valuation (up from $4.6b last fall). Wellington Management led, joined by Khosla Ventures, Bicycle Capital, Geodesic Capital, Archerman Capital and insiders Altimeter, Capital One Ventures, Citi, Coatue, DST Global, General Catalyst, ICONIQ, IVP, Kleiner Perkins, Latitude Capital, Lightspeed Venture Partners, Sapphire Ventures, and Sequoia Capital. axios.link/3SH1pMR

🚑 SpliceBio, a Spanish developer of a gene therapy for treating Stargardt disease, raised $135m in Series B funding. EQT Life Sciences and Sanofi Ventures co-led, joined by Roche Venture Fund and insiders NEA, UCB Ventures, Ysios Capital, Gilde Healthcare, Novartis Venture Fund, and Asabys Partners. axios.link/3HCeQuZ

⚡ Proxima Fusion, a German nuclear fusion startup, raised €130m in Series A funding. Balderton Capital and Cherry Ventures co-led, joined by UVC Partners, DTCF, Plural, Leitmotif, Lightspeed, Bayern Kapital, HTGF, Club degli Investitori, OMNES Capital, Elaia Partners, and Redalpine. axios.link/4kZrqTv

• Wandercraft, a developer of self-balancing robotic mobility systems, raised $75m in Series D funding from Renault Group, Bpifrance, European Investment Bank, Teampact Ventures, and Quadrant Management. wandercraft.eu

• PostHog, an SF-based product analytics platform, raised $70m in Series D funding at a $920m valuation. Stripe led, joined by YC, GV, and Formus Capital. posthog.com

• Abacum, a business financial planning startup, raised $60m in Series B funding, per Axios Pro. Scale Venture Partners led, joined Cathay Innovation, YC, Creandum, Kfund, and Atomico. axios.link/4jM1JVG

• AIM, a Monroe, Wash.-based startup that retrofits earthmoving machinery so they can operate autonomously, raised $50m from Khosla Ventures, General Catalyst, Human Capital, Ironspring Ventures, Mantis, DCVC, and Elad Gil. axios.link/4mRKcOp

• Fermàt, an SF-based commerce platform, raised $45m in Series B funding, per Axios Pro. VMG Partners led, joined by QED Investors, Greylock, Bain Capital Ventures, and Courtside Ventures. axios.link/3SMtTVq

• Tebi, a Dutch hospitality ops startup, raised €30m. CapitalG led, joined by Index Ventures. axios.link/43DBYCb

• Bedrock Ocean, a seafloor mapping startup, raised $25m in Series A2 funding, per TechCrunch. Primary and Northzone co-led, joined by Autopilot, Costanoa Ventures, Harmony Partners, Katapult, and Mana Ventures participated. axios.link/43VVed0

• Tracksuit, a brand-tracking platform, raised $25m in Series B funding. VMG Partners led, joined by insiders Altos Ventures, Footwork, Blackbird and Icehouse Ventures. gotracksuit.com

• CloudQuery, a New York-based cloud governance platform, raised $16m. Partech led, joined by Boldstart, Tiger Global, and Work-Bench. cloudquery.io

• Farsight, a New York-based maker of AI agents for finance professionals, raised $13m in Series A funding, per Axios Pro. SignalFire led, joined by RRE Ventures, Link Ventures, and K5 Ventures. axios.link/3FXcl61

• ZeroRISC, a Somerville, Mass., provider of silicon supply chain integrity solutions, raised $10m in seed funding led by Fontinalis Partners. zerorisc.com

• Daybreak, an SF-based supply chain planning software, raised $15m in Series A funding from TPG Growth and Dell Technologies Capital. daybreak.ai

• Remarcable, a Cleveland-based procurement platform for construction, raised $15m in Series A funding led by Insight Partners. remarcable.com

🚑 Guidehealth, a value-based managed health services company, raised $10m from Emory Healthcare. axios.link/4l5JFHb

• OpenTrade, a London-based stablecoin infrastructure startup, raised $7m co-led by Notion Capital and Mercury Fund, with participation from AlbionVC, a16z, and CMCC Global. axios.link/4e46bxQ

• Shovels, an SF-based building permits platform, raised $5m led by Base10 Partners. axios.link/3HyIWQc

• FinanceKey, a Finnish cash management platform for finance teams raised €3m in seed funding led by Maki.vc. axios.link/43Xh5Rd

• Omnisent, a German acoustic AI startup, raised $3m in pre-seed funding led by Atlantic Labs. axios.link/3HB2Sly

• Lemony, a plug-and-play device for on-prem AI, raised $2m in seed funding led by True Ventures. lemony.ai

⚡ Apollo invested in T.D. Williamson, a Tulsa-based pipeline infrastructure firm majority owned by SCF Partners. axios.link/3ZZcyfP

• Assura (LSE: AGRP), a British medical properties REIT, agreed to a sweetened £1.7b takeover offer from KKR and Stonepeak Partners. axios.link/45fHUT3

• Flexpoint Ford invested in Elliott Davis, a Greenville, S.C.-based accounting firm. elliottdavis.com

• HighPost Capital invested in protein supplements brand Equip Foods. equipfoods.com

• International Wire Group, an Olympus Partners portfolio company, agreed to buy Hussey Copper, a Leetsdale, Pa.-based processor and fabricator of copper products, from KPS Capital Partners. internationalwire.com

🍪 Mistral Equity Partners and Verlinvest increased their ownership of Insomnia Cookies, acquiring Krispy Kreme's (Nasdaq: DNUT) stake for $75m. axios.link/4kMVAcQ

🚑 Nordic Capital invested in Minerva Imaging, a Danish radiopharma services company. axios.link/4l2UCcu

• Pacific Equity Partners offered to buy Johns Lyng Group (ASX: JLG), an Australian property services business whose market cap jumped to A$878m on the news. axios.link/4dYl44r

• Stack Sports, a Genstar Capital portfolio company, acquired club management software provider PlayMetrics from PSG and Blue Star Innovation Partners. stacksports.com

• Trilantic invested in Lifetime Quality Roofing, an Ohio-based provider of residential and commercial roof replacement and exterior restoration services. lifetimequalityroofing.com

• Westland, a Canadian insurance broker backed by Ontario Teachers, acquired British Columbia-based Dave Dale Insurance Agencies. axios.link/43TN1pD

Chime, the neobank once valued at $25b, is expected to price its IPO tonight.

• Ategrity Specialty, a New York-based provider of excess and surplus insurance to SMBs, raised $113m in its IPO. It priced at $17 (above $14-$16 range), for an $822m initial market cap, and will list on the NYSE (ASIC). axios.link/3FlVD09

🎲 Cirsa Enterprises, a Spanish casino operator owned by Blackstone, may launch a €1b IPO within the next few weeks, per Bloomberg. axios.link/43M0Sy0

⚡ EQV Ventures Acquisition II, an energy-focused SPAC formed by EQV Group, raised $350m in its IPO. axios.link/3HzUJOd

🚑 MediLink Therapeutics, a Chinese developer of antibody-drug conjugates, hired banks for a Hong Kong IPO, per Bloomberg. The company has raised over $100m from firms like LYFE Capital, Qiming Venture Partners, and Legend Capital. axios.link/4k4eCut

• Meesho, an Indian social e-commerce company, soon plans to file for a Mumbai IPO that could raise between $700-$800m, per Bloomberg. Backers include SoftBank, B Capital Group, Peak XV Partners, and Venture Highway. axios.link/4e7wRxG

• Voyager, a Denver-based aerospace and defense company, raised $383m in its IPO. It priced 12.3m shares at $31, versus plans to offer 11m shares at $26-$28, for a $1.9b fully diluted market value. The company reports a $66m net loss on $144m in revenue for 2024, and will list on the NYSE (VOYG). axios.link/4kLikto

• DoorDash (Nasdaq: DASH) agreed to acquire New York-based ad-tech firm Symbiosys for $175m. Symbiosys raised VC funding from firms like Fuse. axios.link/444YiDM

🍦 General Mills (NYSE: GIS) is weighing a sale of its Häagen-Dazs stores in China, per Bloomberg. axios.link/4e89YKn

• Mizuho Financial Group (Tokyo: 8411) is in advanced talks to buy a majority stake in Indian investment bank Avendus Capital, per Bloomberg. axios.link/4kJUK0Q

• SES of Luxembourg received unconditional EU regulatory approval for its $3.1b purchase of satellite company Intelsat. axios.link/43AGeSO

• 1745 Ventures has spun out of Bertelsmann Investments, with a 50% stake in the portfolio assets of Bertelsmann Digital Media Investments. BDMI will continue to be led by Urs Cete and Sim Blaustein, founding partners of 1745. axios.link/4mX3q5e

• Ares Management raised $2.4 for a fund focused on Japanese data centers. aresmgmt.com

🌎 Ecosystem Integrity Fund raised $225m for its fifth fund, falling short of its $300m target, per Axios Pro. axios.link/43V9TF3

• Plug and Play raised $50 for a seed-stage fund focused on fintech and AI. plugandplaytechcenter.com

• Sundance Growth, a software-focused firm led by Accel-KKR vet Christian Stewart, raised $125m for its debut fund. axios.link/45XblJE

• Guillermo Baygual is leaving JPMorgan, where he's global co-head of the bank's infrastructure and strategic investors group, per Bloomberg. axios.link/43SoGAr

• Giacomo Greggio joined Canyon Partners as a London-based SVP in its EMEA capital formation group. He previously was with Barings. axios.link/449RaXM

• Jennifer Goldsmith joined Wellington Management as director of industry research. She previously spent 12 years with Sands Capital. axios.link/43C5B6K

🚑 Vijay Pande is leaving a16z, where he helped launch the firm's bio investing practice more than a decade ago The firm is raising $750m for its fifth such fund, which is half the size of Fund IV.

Inflation came in slightly cooler than expected in May, with both CPI and core CPI rising 0.1% month-over-month. Go deeper.