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Shuttered Startups Are Selling Old Slack Chats, Emails To AI Companies

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Why This Matters

The practice of selling internal communications from failed startups to AI companies highlights significant privacy and ethical concerns, especially regarding employee data. This trend underscores the need for stronger data privacy protections and transparency in how workplace data is used for AI training. It also reveals a new revenue stream for defunct companies, raising questions about data ownership and consent in corporate environments.

Key Takeaways

Some failed startups are reportedly selling old Slack messages, emails, and other internal records to AI companies as training data, creating a new way to cash out after shutting down. Fast Company reports: Shanna Johnson, the CEO of now-defunct software company Cielo24, told the publication that she was able to sell every Slack message, internal email, and Jira ticket as training data for "hundreds of thousands of dollars." This isn't a one-off scenario. SimpleClosure, a startup that helps companies like Cielo24 shut down, told Forbes that there's been major interest from AI companies trying to get their hands on workplace data. Because of this, SimpleClosure launched a new tool that allows companies to sell their wealth of internal communications -- from Slack archives to email chains -- to AI labs. The company said it's processed 100 such deals in the past year. Payouts ranged from $10,000 to $100,000. "I think the privacy issues here are quite substantial," Marc Rotenberg, founder of the Center for AI and Digital Policy, told Forbes. "Employee privacy remains a key concern, particularly because people have become so dependent on these new internal messaging tools like Slack. ... It's not generic data. It's identifiable people."

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