Forbes on Nostr: Defense Contractor Scale AI Quietly Scrapped Deal With Chinese-Owned TikTok Over ...
Defense Contractor Scale AI Quietly Scrapped Deal With Chinese-Owned TikTok Over Security Concerns
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Defense contractor Scale AI canceled a deal with Chinese-owned TikTok over security concerns. Scale AI CEO Alexandr Wang pursued the deal despite concerns from the company's leadership. Former President Donald Trump had previously announced plans to ban TikTok due to national security concerns. Scale AI reconsidered the deal after reports that TikTok's parent company, ByteDance, planned to surveil American citizens using the app's geo-location data. The deal was ended less than a month after it began. Bill Evanina, former head of counterintelligence for the U.S. government, called any deal between a defense contractor and TikTok a 'bad decision.' Scale AI's TikTok reversal was seen as a positive move to avert a catastrophe. Scale AI is a $7.3 billion AI startup that provides data-labeling services. The company has been expanding its government and military business and has raised $600 million from investors. Scale AI has spent $1.95 million lobbying the federal government and has generated $90 million in public government contracts. The company currently has 20 active government contracts. Scale AI's defense arm has faced concerns about overstatements regarding its work with the government and the capabilities of its products. The company's growth in the government business has not been as significant as its commercial business. Scale AI's first contract with the Department of Defense was worth around $100 million over four years. The company's defense business relies heavily on its Project Maven contract, which is due to expire soon. Scale AI CEO Alexandr Wang has positioned himself as a leader in defense tech and has emphasized the importance of supporting U.S. national security.
https://www.forbes.com/sites/davidjeans/2024/02/02/scale-ai-tiktok-bytedance-security-concerns/
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Defense contractor Scale AI canceled a deal with Chinese-owned TikTok over security concerns. Scale AI CEO Alexandr Wang pursued the deal despite concerns from the company's leadership. Former President Donald Trump had previously announced plans to ban TikTok due to national security concerns. Scale AI reconsidered the deal after reports that TikTok's parent company, ByteDance, planned to surveil American citizens using the app's geo-location data. The deal was ended less than a month after it began. Bill Evanina, former head of counterintelligence for the U.S. government, called any deal between a defense contractor and TikTok a 'bad decision.' Scale AI's TikTok reversal was seen as a positive move to avert a catastrophe. Scale AI is a $7.3 billion AI startup that provides data-labeling services. The company has been expanding its government and military business and has raised $600 million from investors. Scale AI has spent $1.95 million lobbying the federal government and has generated $90 million in public government contracts. The company currently has 20 active government contracts. Scale AI's defense arm has faced concerns about overstatements regarding its work with the government and the capabilities of its products. The company's growth in the government business has not been as significant as its commercial business. Scale AI's first contract with the Department of Defense was worth around $100 million over four years. The company's defense business relies heavily on its Project Maven contract, which is due to expire soon. Scale AI CEO Alexandr Wang has positioned himself as a leader in defense tech and has emphasized the importance of supporting U.S. national security.
https://www.forbes.com/sites/davidjeans/2024/02/02/scale-ai-tiktok-bytedance-security-concerns/