Jason Droege, the interim CEO steering Scale AI through turbulent times, delivered a stark message from Davos: 2026 will expose which artificial intelligence companies are truly delivering results. In a CNBC exclusive on Squawk on the Street, Mr. Droege detailed Scale’s explosive 2025 growth, including doubling annual revenue, thanks to over $1 billion in new bookings, with more than half secured in the fourth quarter. This performance comes amid skepticism about the AI sector’s sustainability.

Scale AI, once led by founder Alexandr Wang—who departed for a chief AI officer role at Meta Platforms in mid-2025—has defied predictions of decline. Mr. Droege, promoted from chief strategy officer, emphasized the company’s pivot from data labeling to full-fledged AI applications for enterprises and governments. ‘2025 was a big year for us. Obviously with the Meta investment, doubling revenue for the new year, and new bookings for the year coming in over $1 billion,’ Mr. Droege told CNBC, highlighting the fourth quarter as Scale’s most profitable ever. Meta’s $14 billion investment valued Scale at over $29 billion, as reported by Nasdaq.

The company’s resilience post-leadership change has been a focal point. Earlier concerns painted Scale as a ‘zombie company’ after Mr. Wang’s exit, but Mr. Droege’s leadership has fueled expansion, according to CNBC.

Enterprise Breakthroughs Fuel Momentum

Scale’s enterprise push targets reliability, a pain point for executives wary of deploying unproven AI. Mr. Droege explained how Scale embeds experts on-site with clients like BP, Mayo Clinic, and Allianz—new Q4 customers—to solve feasible AI problems. ‘We go on site with the people who’ve been working with the models for the past three, four years… We work on the problems that AI can actually solve,’ he said on CNBC. This model-agnostic approach allows flexibility across providers, including but not limited to Meta’s offerings.

For the U.S. Defense Department, Scale has evolved from data services to operational planning tools. ‘We’ve been building applications to help them with operational planning… Those processes are highly manual. They’re expensive, and they can be done and assisted with AI very effectively,’ Mr. Droege noted. This work echoes Palantir’s defense contracts but focuses on logistics and planning, building on years of collaboration.

Scale’s hands-on strategy addresses a broader issue: Most companies see no return on AI investments. Mr. Droege aims to change that by selecting solvable problems, as discussed in his CNN profile.

Navigating the Hype Versus Reality Divide

Amid Davos debates on an AI bubble, Mr. Droege drew a line between promise and delivery. ‘There are a lot of promises out there on what AI can do that are not being delivered on today… Next year in Davos, the wheat and the chaff are going to [be clear],’ he predicted on CNBC. He views AI infrastructure—like Scale’s data and applications—as a booming, demand-driven sector, separate from overhyped consumer plays.

In his first major interview as CEO with Lenny’s Newsletter, Mr. Droege elaborated on Meta’s $14 billion bet and enterprise AI successes, drawing from his Uber Eats experience scaling to $20 billion. Scale’s independence remains key, even as Meta is a major customer and investor.

Posts on X from Scale AI underscore ongoing momentum, including a $99 million U.S. Army contract for AI acceleration and new benchmarks like MoReBench for AI moral reasoning.

From Data Roots to Application Powerhouse

Scale’s origins in data labeling for autonomous vehicles have expanded into a data engine for physical AI and robotics, as announced on X. Mr. Droege’s September 2025 Axios interview marked his public debut as leader, signaling a shift beyond labeling.

A Scale blog post from Mr. Droege reaffirmed commitment to trusted AI applications. The company’s $29 billion valuation reflects investor confidence, per the Nasdaq release.

Enterprise adoption stories, like those with BP for energy optimization, Mayo Clinic for healthcare diagnostics, and Allianz for insurance risk assessment, demonstrate practical value. These partnerships prioritize problems where AI excels, avoiding the pitfalls of tackling intractable challenges first.

Defense and Government as Growth Anchors

Scale’s defense work spans logistics planning, reducing manual processes amid rising geopolitical tensions. This builds on a five-year relationship, evolving into AI-assisted operations that enhance efficiency without replacing human oversight.

Beyond defense, governments and Fortune 500 firms seek Scale’s services for reliable AI deployment. Mr. Droege stressed patience and investment: ‘You need to pick the right problems… Put the right people and technology in place.’

The U.S. Army contract, highlighted on X, positions Scale at the forefront of military AI innovation.

2026 Predictions: Value Drives Survival

Looking ahead, Mr. Droege anticipates a shakeout. Well-funded firms failing to deliver will falter, while those like Scale—proving ROI—thrive. This view aligns with MIT reports cited in media, noting 95% of AI trials yield no returns.

Scale’s Q4 surge—biggest revenue and most profitable quarter—validates its model. New bookings acceleration signals enterprise confidence amid economic uncertainty.

As AI integrates deeper into operations, Scale’s focus on reliability positions it as a linchpin for the sector’s maturation.

Leadership Transition’s Lasting Impact

Mr. Wang’s move to Meta, covered by CNBC, initially raised doubts, but Mr. Droege’s track record—from Uber to Scale—has stabilized and grown the firm. His open letter on the Scale blog emphasized independence and focus.