Scale AI Expands Pentagon AI Partnership To $500 Million

By Amit Chowdhry • Yesterday at 1:02 PM

Scale AI has announced a five-fold expansion of its enterprise agreement with the U.S. Department of War’s Chief Digital and Artificial Intelligence Office, increasing the total potential contract value from $100 million to $500 million. The expansion follows rapid uptake of the Production Other Transaction Authority agreement since its original award in September 2025, with demand across the Department exceeding the original contract ceiling.

The Production OTA is structured to bypass the fragmented, multi-year acquisition cycles that have historically slowed defense technology adoption. Unlike standard procurement vehicles, the agreement allows any Department of War component to route funding to the centralized contracting authority and initiate its own Project Agreement covering any Scale product, service, or capability — without requiring a new competitive solicitation. Components operating under the agreement already include elements from the Army, Navy, and Marine Corps, as well as defense agencies and other offices spanning both operational and institutional elements of the Department.

Under the agreement, Department components can access Scale’s full AI platform, including Scale Data Engine for building and deploying computer vision models powered by defense-domain labeled data, the Scale GenAI Platform for fine-tuning and deploying generative AI models on classified networks, and Scale Donovan, a generative AI decision-support platform designed to turn unstructured data into actionable insights at mission speed. All capabilities are available across NIPR, SIPR, and JWICS networks. Scale’s AI Center in St. Louis powers the data annotation work, with annotators trained specifically for defense tasks, including EO/IR and SAR imagery labeling for autonomy programs.

Scale AI said the expansion directly supports the Department of War AI Strategy’s focus on building robust data foundations and creating agile, iterative pipelines for AI deployment at the tactical edge, with the goal of moving from small-scale pilots to enterprise-wide deployment across the force.