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

When Keelan Miskell began winding down his crypto startup this year, he didn’t think its data was worth much: the users were anonymous, the company just a few years old. But he’s since turned the firm’s digital archives into real money. He’s netted roughly $25,000 for his code base and a still-pending amount (likely around $15,000) for the workspace data in Google, Notion, Figma, and Slack. “At least all that stuff we were doing for two and a half years is worth something to someone somewhere,” he says.

The sale was brokered by a company called SimpleClosure, part of a new growth sector in tech: businesses catering to dying startups. Estimates from Carta and AngelList show shutdowns rising between 26% and 56% annually in recent years, and an end-of-life ecosystem—including coaches, “death doulas,” and firms that help handle the legal, tax, and operational headaches of going ­belly-up—has emerged. Now tech undertakers are selling the data remains to AI labs.

SimpleClosure …