AI labs are buying data from dead startups to train models

Wind-down services like SimpleClosure and Sunset are selling defunct startups' code and workspace data to AI labs. SimpleClosure has handled over 150 deals and expects to return more than $10 million to startups by the end of 2026; Google bought Spirit Airlines' data for $10 million.

• SimpleClosure has handled 150+ deals, 47% include code or data sales
• Google bought Spirit Airlines data: 100M emails and 500M messages for $10M
• A crypto founder netted ~$25,000 for code and ~$15,000 for workspace data
• Lawyers call such data 'legally radioactive' over privacy concerns