First interview with Scale AI’s CEO: $14B Meta deal, what’s working in enterprise AI, and what frontier labs are building next | Jason Droege
🤖 AI Summary
Overview
This episode features Jason Droege, CEO of Scale AI, discussing the evolution of AI, the role of human expertise in training models, and lessons from his career, including building Uber Eats and navigating transformative business challenges. Jason provides insights into enterprise AI, the future of models, and practical advice for entrepreneurs.
Notable Quotes
- The general trend right now is going from models knowing things to models doing things.
— Jason Droege, on the future of AI models.
- Everything's negotiable. If you can imagine it and align incentives, then it can happen.
— Jason Droege, reflecting on lessons from his early startup experience.
- The urgency of the buyer is the biggest thing people miss when building new products.
— Jason Droege, on understanding customer priorities.
🚀 The Evolution of AI Models
- Jason highlights the shift from AI models simply knowing information to actively performing tasks, such as navigating complex systems like Salesforce or healthcare environments.
- Scale AI has adapted to the increasing need for expert data labeling, with 80% of contributors holding bachelor’s degrees or higher and 15% possessing PhDs.
- Examples of tasks include building websites, debugging code, and synthesizing nuanced medical diagnoses.
💡 Lessons from Building Uber Eats
- Jason shares how Uber Eats went from an idea to a $20 billion business in 4.5 years, emphasizing the importance of understanding restaurant economics.
- His team analyzed ingredient costs by weighing sandwich components to uncover insights about restaurant margins and pricing strategies.
- The partnership with McDonald’s, initially resisted, became a pivotal moment, driving massive growth and setting a precedent for onboarding global chains.
📊 Enterprise AI Challenges and Opportunities
- Jason addresses the hype around enterprise AI, noting that while pilot projects often fail, meaningful implementations require 6–12 months of rigorous development.
- He emphasizes the importance of high-quality data and human judgment, as most enterprise data is not immediately useful for AI models.
- Reinforcement learning environments are key to training AI agents to navigate real-world systems effectively.
🧠 Independent Thinking in Entrepreneurship
- Jason stresses the importance of independent insights when starting a business, asking, Why am I uniquely positioned to solve this problem?
- He advises founders to focus on urgent, daily customer problems rather than occasional, high-value issues.
- Success often hinges on perseverance and adaptability, with survival being a precursor to thriving in competitive markets.
👥 Building Teams and Hiring Philosophy
- Jason prioritizes hiring curious problem solvers, collaborative team players, and strong leaders over purely technical expertise.
- He believes in composing teams that complement each other’s strengths and weaknesses, as demonstrated by the longevity of Uber Eats’ management team.
- For roles requiring speed to market, he acknowledges the need for specialized experience but maintains that adaptability is crucial for long-term success.
AI-generated content may not be accurate or complete and should not be relied upon as a sole source of truth.
📋 Episode Description
Jason Droege is the CEO of Scale AI, a company that provides foundational training data to every major AI lab. He previously co-founded Scour with Travis Kalanick and built Uber Eats from idea to $20 billion in revenue. In this conversation, Jason shares lessons from getting sued for $250 billion, discovering restaurant economics by weighing sandwich ingredients, and over 25 years of launching transformative technology businesses.
What you’ll learn:
What actually happened with Meta’s $14 billion investment in Scale AI
Why AI models still need human experts to improve, and how that relationship is evolving
How AI models learn from experts building websites and debugging code
The business lessons from building Uber Eats from zero to $20 billion
Why most enterprise data is useless for AI models today
Why urgent daily problems beat super-valuable occasional problems when building products
How to think independently when building new products and businesses
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Transcript: https://www.lennysnewsletter.com/p/first-interview-with-scale-ais-ceo-jason-droege
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My biggest takeaways (for paid newsletter subscribers): https://www.lennysnewsletter.com/i/174979621/my-biggest-takeaways-from-this-conversation
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Where to find Jason Droege:
• LinkedIn: https://www.linkedin.com/in/jasondroege/
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Where to find Lenny:
• Newsletter: https://www.lennysnewsletter.com
• X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/
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In this episode, we cover:
(00:00) Introduction to Jason Droege
(06:01) Jason’s early career and lessons learned
(10:27) The current sta