Defense Department Awards Scale AI $500 Million Contract
The Defense Department has awarded a $500 million contract to Scale AI, a company backed by Meta. The deal is five times larger than the company's contract with the department last year. Scale AI provides data labeling and annotation services used in artificial intelligence systems.
nbcnews.comThe new agreement is five times larger than the one the company received from the department last year. Scale AI specializes in labeling and annotating data that trains artificial intelligence models. Its technology supports a range of government and commercial AI applications, including those used by military systems.
The company, which has received investment from Meta, has positioned itself as a key provider in this sector.
Last year's award from the department to Scale AI totaled $100 million. The new contract brings the total value to five times that amount, indicating a significant expansion in the department's reliance on the firm's services. The agreement comes as federal agencies increase investment in AI capabilities.
Scale AI's platform helps process and label large datasets required for machine learning models used in defense applications.
AI was founded to address the data preparation needs of AI developers. Its customers include both private sector technology firms and government entities seeking to deploy AI systems. The company's Meta backing has supported its growth in recent years. The report did not disclose additional terms of the agreement or specific timelines for delivery.
