Exclusive: Former Meta and OpenAI Contractor Sama Liquidates, Citing Lawsuits
The embattled AI data annotation firm Sama is winding down its operations and liquidating its assets, according to a letter to creditors reviewed by TIME.
Sama, an AI data annotation firm, is liquidating its assets and ceasing operations, according to a letter to creditors obtained by TIME. The company attributes its financial struggles to "declining revenues due to increased competition" and "increased class action litigation." Sama faced lawsuits in Kenya and the U.S. related to allegations of exploiting and illegally terminating former moderators and suppressing unionization efforts.
As of October, Sama had approximately $1 million in assets and $17 million in liabilities. The company performed content moderation for Meta and data labeling for OpenAI, which exposed employees to traumatic content without adequate safeguards. Sama's CEO Wendy Gonzalez has not commented on the liquidation.
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