Why It Matters

Scale AI Inc., an artificial intelligence data infrastructure company, has added VM Group LLC to its growing roster of outside lobbying firms. Scale AI Inc. provides AI and data labeling services to the U.S. Department of Defense and intelligence community, and Phil MacNaughton Jr. and Chris Vieson lobbied for Scale AI Inc. on defense issues in 2026 through VM Group LLC.

By the Numbers

Scale AI's lobbying footprint has grown substantially. The company spent $3.15 million in the past four quarters and maintains 38 active lobbyists. Over the past five years, Scale AI has lobbied on defense issues 60 times, intelligence and surveillance 25 times, and science and technology matters 28 times. The company also engaged in lobbying work on budget and appropriations nine times, computer industry issues four times, labor and antitrust matters three times, economics and economic development three times, and energy and nuclear issues twice.

MacNaughton has been registered to lobby on defense matters for Scale AI since August 2025. The VM Group LLC registration was signed on August 28 following Scale AI's termination of its relationship with SHW Partners LLC on July 27. Scale AI continues to work with other lobbying firms including Cornerstone Government Affairs Inc., Mehlman Consulting Inc., and S-3 Group LLC, while maintaining in-house lobbyists including Max Fenkell, Global Head of Policy and Government Relations, and Ariel Marshall, Congressional Lead.

Broader Context

The Pentagon's contract with Scale AI represents the latest step in the U.S. military's effort to rely more on artificial intelligence. Meta owns 49 percent of Scale AI.

Senators Chuck Grassley and Jim Banks sent letters to nine AI companies (including Meta Platforms Inc., Microsoft, Google LLC, OpenAI, Anthropic, x.AI Corp., Amazon, Safe Superintelligence Inc., and Thinking Machines Lab) calling on them to describe efforts to detect and guard against Chinese espionage, manage insider threats posed by China, and secure sensitive AI model information. Scale AI was mentioned in hearings examining national security risks posed by Chinese artificial intelligence and robotics technologies, as well as in hearings on AI's role in American competitiveness.

Between The Lines

The FY2025 National Defense Authorization Act included a provision establishing a Department of Defense testing program for AI, and the FY2026 NDAA contains numerous provisions regarding cyber-related issues and artificial intelligence. Rep. John R. Moolenaar's H.R. 119 was referred to the Committee on Foreign Affairs and the Committee on Intelligence on April 15. Other AI-related bills include legislation sponsored by Rep. Jay Obernolte with seven cosponsors and bills by Rep. Alexandria Ocasio-Cortez and Rep. Pablo José Hernández.

Lawmakers have also raised concerns about AI security and data. Rep. Kat Trahan stated that there is no federal law requiring disclosure of AI model breaches. Rep. August Pfluger spoke at a House Subcommittee on Communications and Technology hearing on July 22, and Sen. Ted Cruz discussed the importance of embracing multiple network technologies, including fiber, wireless, and satellite to enable AI connectivity across America at a Senate hearing on July 30.

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