SpaceXAI explores buying defunct startups' data for Grok training

Key facts

• SpaceXAI is considering buying customer and operational data from failed startups.
• The goal is to obtain inexpensive training data for the Grok AI model.
• Google previously paid $10 million for Spirit Airlines' internal records at a bankruptcy auction.
• A flight attendants' union is contesting the use of Spirit Airlines' employee data in court.
• Elon Musk stated in August that Grok would be trained on SpaceX's internal records.

SpaceXAI, the artificial intelligence division of Elon Musk's SpaceX, is reportedly holding informal internal discussions about purchasing customer and operational data from defunct startups. The aim is to acquire large datasets at a lower cost for training the Grok AI model, a strategy that mirrors Google's $10 million acquisition of Spirit Airlines' business records in a bankruptcy auction.

AI models like Grok learn from training data, and acquiring such data from companies that have ceased operations is seen as a potentially cost-effective method compared to scraping web pages or licensing data from active companies. The Spirit Airlines acquisition included approximately 100 million emails and 500 million Microsoft Teams messages, along with decades of employee files.

This practice has raised privacy concerns. A flight attendants' union has objected in bankruptcy court to the use of Spirit Airlines' employee data, arguing that even with de-identification, individuals could be identified. The court case is ongoing. Bankruptcy proceedings treat customer databases similarly to other assets, auctioning them to the highest bidder without direct consent from the original customers.

In August, Musk informed SpaceX employees that the company would also utilize its own internal records for Grok's training, reportedly stating that the model would "inherit your thoughts." The extent of which employee data categories would be used remains unspecified.