Scale AI claims autonomy despite Meta's stake

Jason Droege, the newly appointed CEO of Scale AI, emphasized that the data-labeling firm continues to operate independently from Meta Platforms Inc., despite the company’s recent acquisition of a 49% stake.

He also said the company planned to expand its business as well. In one of his first interviews since becoming interim CEO in mid-June, Droege explained that Meta, a Scale customer since 2019, will not get preferential treatment despite investing $14.3 billion into the company.

According to Droege, the tech company is only a customer, and they will support them like they do their other customers, concluding that this was the extent of the relationship.

Droege vows to keep Scale AI’s customer data privacy rules and governance unchanged 

Alexandr Wang, the 28-year-old co-founder and former CEO of Scale AI, has stepped down to lead a new superintelligence division at Meta. According to newly appointed CEO Jason Droege, fewer than a dozen of Scale’s 1,500 employees have followed Wang to his new post.

Wang will retain a seat on Scale’s board, but Meta will not gain any additional board representation. Droege emphasized that Scale’s data privacy policies and governance remain unchanged, assuring customers that internal, client-specific data remains inaccessible to the board.

Droege stated that they have implemented strict protocols to safeguard customers’ privacy and security — including their IP and data — and to prevent cross-sharing among clients.

Previously Scale’s chief strategy officer, Droege brings extensive Silicon Valley experience to his new role. He was a partner at Benchmark and earlier served as a vice president at Uber, where he helped launch Uber Eats.

Rising competition and customer concerns put pressure on Scale AI’s dominance

Scale has long dominated the data labeling market, supporting tech firms in analyzing the datasets needed to train AI models. The company reportedly brought in $870 million in revenue in 2024 and is on track to hit $2 billion this year.

But competition is intensifying. Rivals like Turing, Invisible Technologies, Labelbox, and even Uber are stepping in to meet the growing demand for high-quality training data, and they’re gaining traction.

The landscape is becoming even more challenging as customer interest shifts toward these emerging players. Some clients have expressed concerns over Meta’s deepening involvement with Scale, which may expose sensitive AI development processes.

As a result, major companies like OpenAI and Google have begun distancing themselves from Scale, according to sources familiar with the matter.

Scale AI expands its applications business

While data labeling remains a core section of Scale’s operations, CEO Alexandr Wang Droege noted that the company is increasingly focused on growing its applications business — a division that delivers services built on top of existing foundation AI models.

According to Droege, this segment now generates nine-figure annual revenue, though he declined to give a precise figure. Clients include Fortune 500 firms across healthcare, education, telecommunications, and US government agencies.

Despite the company’s ties with Meta, Droege emphasized that Scale will continue supporting a wide range of AI models, not just Meta’s Llama.

As Meta vies with rivals like OpenAI, Google, and Anthropic for top AI talent, Droege acknowledged in a company message that Scale is undergoing a major transformation. He expressed confidence in the company’s future, citing the “enormous opportunity” ahead as AI adoption accelerates.

He also underscored Scale’s adaptability, pointing to its experience managing data across industries — from autonomous vehicles to generative AI, and from enterprise clients to government partners.

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