AI labs are buying data from dead startups to train their models

What happened: Tech companies that help shut down startups are now selling defunct firms' data, including code, emails, chats, and documents, to AI labs for model training. SimpleClosure added data sales in April via its Asset Hub platform. Key numbers: Miskell netted about $25,000 for his code base and a pending roughly $15,000 for workspace data. Why it matters: Demand emerged as AI labs hit limits of public and synthetic datasets, making once-taboo data sales routine. Legal and privacy concerns persist, and proceeds typically go to creditors and investors, not employees.

Tech companies that help shut down startups are now selling defunct firms' data, including code, emails, chats, and documents, to AI labs for model training. SimpleClosure added data sales in April via its Asset Hub platform.

Demand emerged as AI labs hit limits of public and synthetic datasets, making once-taboo data sales routine. Legal and privacy concerns persist, and proceeds typically go to creditors and investors, not employees.