Some defunct startups are monetizing their archived internal communications by selling old Slack messages, emails, and other documents as training data to AI companies. Shanna Johnson, former CEO of Cielo24, disclosed that she sold her company’s internal records for “hundreds of thousands of dollars.” The startup SimpleClosure, which assists companies in winding down operations, reported significant demand from AI firms for such data, leading them to create a tool that facilitates these sales. In the past year, SimpleClosure has processed around 100 transactions, with payouts ranging from $10,000 to $100,000. Privacy concerns are at the forefront of this practice, as experts emphasize the potential risks associated with using identifiable employee data from these communications.
Why It Matters
The sale of internal communications raises significant privacy and ethical concerns, particularly regarding employee data protection. As workplace messaging platforms like Slack become ubiquitous, the risk of mishandling personal information increases. Previous incidents of data misuse in tech have highlighted the vulnerabilities in how sensitive information is stored and shared, making it imperative for companies to establish stringent data governance policies. The growing trend of selling internal company data underscores the need for comprehensive regulations that address the intersection of AI development and privacy rights.
Want More Context? 🔎
