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. The letter, dated Nov. 6, blames “declining revenues due to increased competition that was compounded by recent class action litigation that would have required significant resources and years to defend successfully.” The letter does not specify which class-action litigation contributed to Sama's financial difficulties. The company has faced separate such lawsuits in Kenya and the U.S. An unaudited balance sheet attached to the letter shows Sama had approximately $1 million in assets and $17 million in liabilities as of October.