The New Gold Rush: Data from the Dead
Ah, the tech industry. Just when you think it can't get any more absurd, it surprises you. Now, AI labs are scavenging the digital remains of dead startups, buying up their data to train AI models. It's like a digital grave robbing, but with more zeros on the price tag.
The Players in the Game
- SimpleClosure and Sunset: These companies are the vultures circling the carcasses of failed startups, helping founders monetize what was once considered worthless—like old emails and chat logs.
- Surge AI: Led by Edwin Chen, this company is part of the new wave of AI firms eager to get their hands on "real" data.
- Google: Not one to miss out on a trend, Google has already shelled out $10 million for Spirit Airlines' data.
The Ethical Quagmire
Of course, this new "industry" raises some serious ethical and legal questions. Who would've thought? The data being sold includes personal information from employees who never consented to this kind of transaction. It's like selling someone's diary without asking.
- Privacy Concerns: A staggering 46% of consumers are worried about data privacy, and rightly so. This practice is a legal minefield, described as "legally radioactive" by lawyer Greg Ewing.
- Consent Issues: Employees' data is being sold without their explicit consent. Ifeoma Ajunwa, a law professor, calls this "capital captured," where profits bypass the very people whose data is being sold.