AI labs buy failed startups' data to train models

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

AI labs are buying the code, email and chat archives of failed startups through firms like SimpleClosure and Sunset to train models and AI agents. SimpleClosure's Asset Hub has handled more than 150 deals, and Surge AI uses real archives to build reinforcement learning environments. No company has published a comparison of training results on real versus synthetic data.

Why it matters: AI labs are buying failed companies' work archives for training, with sale proceeds usually going to creditors and investors, raising disputes over employee privacy and consent to sell data.