AI data annotation firm Sama, which worked for Meta and OpenAI, is winding down and liquidating

Sama is winding down its operations and liquidating its assets, according to TIME. A November 6 letter to creditors cited falling revenue, increased competition and class-action litigation that would require substantial resources to defend.

An unaudited balance sheet showed about $1 million in assets and $17 million in liabilities as of October. On October 23, Samasource Impact Sourcing, Inc. transferred its assets to a newly formed company, Sama ABC, which will oversee their sale and distribute proceeds to creditors. A bank holds a priority claim to substantially all the assets.

Sama previously provided content moderation services for Meta Platforms, Inc. and data labeling services for OpenAI. Sama and Meta face lawsuits in Kenya alleging labor violations involving former Facebook content moderators. The creditor letter did not explain how the liquidation would affect those cases.