Scale AI Backs Out of TikTok Deal Amid National Security Concerns
-
Scale AI, a $7.3B defense contractor, quietly scrapped a deal with TikTok over national security concerns. Executives worried it could jeopardize government business.
-
Scale CEO Alexandr Wang pushed the deal despite objections, seeing commercial opportunity. But Scale pulled out after news broke of TikTok planning to surveil Americans.
-
Scale is positioning itself in defense tech and courting government contracts, but some military personnel have complained Scale overstated its capabilities.
-
The company struggles to move government trials of its AI platform into full contracts and remains reliant on its first defense deal from 2020.
-
Wang says serving America's security interests is a priority, but some insiders worry commercial goals undermine that mission in cases like the TikTok deal.