The company, which uses human labor to label data for AI training, has been actively seeking defense contracts and has spent $1.95 million lobbying the federal government between 2020 and 2023. However, there have been concerns about overstatements regarding the company's work with the government and the extent of its capabilities. Scale's defense business still largely relies on its first contract, Project Maven, which is due to expire this spring.
Key takeaways:
- Scale AI, a $7.3 billion AI startup, faced internal concerns over a deal with TikTok due to potential national security implications and the risk of jeopardizing future government business.
- The company ended discussions with TikTok less than a month after the partnership began, following revelations that TikTok's parent company ByteDance had planned to surveil American citizens.
- Scale AI's defense business, which has been a priority for CEO Alexandr Wang, has faced challenges including overstated claims about its work with the government and the extent of its capabilities.
- The company's first major defense contract, Project Maven, which has comprised the majority of its federal revenue, is due to expire this spring and Scale will have to compete for it again.