Scale AI Expands Defense Lobbying With VM Group Hire
The Pentagon contractor now fields 38 lobbyists and spent $3.15 million on influence efforts in the past year.
Scale AI bolsters Washington presence
Scale AI Inc., a provider of AI data labeling and infrastructure services to the U.S. military and intelligence agencies, has retained VM Group LLC for defense-focused lobbying work. Phil MacNaughton Jr. and Chris Vieson will represent the company on defense matters through the new engagement, according to details first reported by AI Watch.
The VM Group registration, signed August 28, came shortly after Scale AI terminated its relationship with SHW Partners LLC on July 27. MacNaughton has lobbied on defense issues for Scale AI since August 2025.
Growing influence operation
Scale AI's Washington footprint has expanded significantly. The company now maintains 38 active lobbyists and spent $3.15 million on lobbying during the past four quarters. Beyond VM Group, Scale AI works with Cornerstone Government Affairs Inc., Mehlman Consulting Inc., and S-3 Group LLC, while employing in-house advocates including Max Fenkell, Global Head of Policy and Government Relations, and Ariel Marshall, Congressional Lead.
Over five years, the company has lobbied on defense issues 60 times, intelligence and surveillance matters 25 times, and science and technology topics 28 times. Additional lobbying activity covered budget and appropriations (nine instances), computer industry issues (four), labor and antitrust (three), economics (three), and energy (twice).
Why it matters
Scale AI's intensifying lobbying reflects the Pentagon's accelerating push to integrate artificial intelligence into military operations. With Meta owning 49 percent of the company, Scale AI sits at the intersection of commercial AI development and national security applications—a position that draws both opportunity and scrutiny as lawmakers debate AI security standards, Chinese espionage risks, and the absence of federal breach disclosure requirements for AI systems.
Congressional attention intensifies
Senators Chuck Grassley and Jim Banks sent letters to nine major AI companies—including Meta Platforms Inc., Microsoft, Google LLC, OpenAI, Anthropic, x.AI Corp., Amazon, Safe Superintelligence Inc., and Thinking Machines Lab—demanding details on measures to counter Chinese espionage, manage insider threats, and protect sensitive AI model information.
Scale AI has been mentioned in congressional hearings examining national security risks from Chinese AI and robotics technologies, as well as sessions on AI's role in American competitiveness.
Legislative landscape
The FY2025 National Defense Authorization Act established a Department of Defense testing program for AI. The FY2026 NDAA contains multiple provisions addressing cyber 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 legislation includes bills sponsored by Rep. Jay Obernolte (with seven cosponsors), Rep. Alexandria Ocasio-Cortez, and Rep. Pablo José Hernández.
Rep. Kat Trahan noted that no federal law currently requires disclosure of AI model breaches. Sen. Ted Cruz discussed the importance of deploying multiple network technologies—fiber, wireless, and satellite—to enable AI connectivity nationwide during a Senate hearing on July 30.
These details were first reported by AI Watch.
This is an original analysis by the Omega editorial team. Source reporting: AI Watch.
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