Google To Buy Spirit Airlines' Business Data For $10 Million To Train AI Models

Google has won a bankruptcy auction to acquire a vast collection of Spirit Airlines’ internal business data for $10 million, with the technology giant planning to use the deidentified information to improve its products and train artificial intelligence (AI) models. The transaction still requires approval from a US bankruptcy judge.

TL;DR

 

• Google bid $10 million for Spirit Airlines’ deidentified business data, including about 100 million emails and 500 million Microsoft Teams chats.
• Google says the data will help improve its products and AI models, with personally identifiable information removed by a third party.
• The deal excludes passenger and loyalty-program data and requires court approval on August 19.

Google emerged as the winning bidder for the dataset following a bankruptcy auction held as Spirit Airlines continues selling assets after ceasing operations earlier this year.

Source

Reuters reported that Google plans to use the acquired information for product development and AI model training. The assets span employee emails, Microsoft Teams messages, spreadsheets, calendars, marketing information, productivity records and operational data.

Axios, citing bankruptcy court filings, reported that the deal includes around 100 million emails and 500 million Microsoft Teams chats and collaboration records. Other material includes human resources information, project management documents, financial databases, audits and presentations.

That makes the transaction notable not just for its size, but for the kind of information Google is acquiring. Rather than public web content, the dataset offers years of real-world corporate communications and operational records that could provide AI systems with examples of how work is carried out inside a large organization.

“We acquired part of an enterprise dataset from Spirit Airlines, which can be helpful in improving our products and AI models,” a Google spokesperson said, according to Axios.

What Data Is Google Getting From Spirit Airlines?

Outlook Business reported that the wider cache also includes pricing information covering 7.2 billion competitor flights and an estimated 7.5 billion passenger transactions dating back to 2008. The acquisition reportedly includes around 30 million lines of code, development metadata, software models and algorithms, along with more than 175,000 employee records dating back to 1986.

However, this does not mean Google is receiving Spirit customers’ personal information.

Bloomberg Law reported that 97.5 million passenger profiles and an estimated 50.2 million records connected to Spirit’s Free Spirit loyalty program are excluded from the purchase. Reuters similarly reported that the dataset will contain no customer information or personally identifiable information.

Google said any information it receives will undergo a third-party process to remove personally identifiable information before the transfer. The bankruptcy filing also shows that Spirit considered the deidentification process when evaluating bids, with Google agreeing to bear the cost of having the data deidentified by a third party.

Quartz noted that the sheer scale of the communications data, particularly the emails and Teams conversations, gives Google access to a substantial enterprise dataset for improving its AI systems and products.

Google Beat Mercor's Rival Bid

Google initially offered $5 million for the deidentified data before competitive bidding drove the final price to $10 million.

Court documents show AI company Mercor submitted competing bids during the auction. Spirit ultimately selected Google’s $10 million offer as the successful bid and designated Mercor’s $7.5 million offer as the alternate bid.

 

The filing notes that Mercor also proposed paying $10 million if it could conduct the deidentification process internally instead of using a third party. Spirit and its advisers chose Google’s offer, with the court declaration citing its value and greater certainty of closing.

What Happens Next?

Google has won the auction, but the sale is not yet final.

Reuters said a US bankruptcy judge is scheduled to consider approval of the transaction at an August 19 hearing. Bloomberg Law identified US Bankruptcy Judge Sean Lane as the judge scheduled to hear the proposed sale.

If Google's purchase does not proceed, Mercor remains the designated backup buyer at $7.5 million.

Spirit Airlines ceased operations in May amid its second Chapter 11 bankruptcy in two years, leaving the company to dispose of remaining assets through the bankruptcy process. The unusual Google deal now shows that even the internal digital records accumulated by a collapsed company can carry significant value as technology companies seek new datasets for developing AI systems.