A US bankruptcy court delayed to September 9, 2026, a hearing to approve Alphabet Inc. (NASDAQ:GOOGL)’s Google buying internal business data from bankrupt Spirit Airlines for $10 million, after the flight attendants’ union representing Spirit’s cabin crew formally objected to the sale.
Why This Matters
AI companies are increasingly buying up ordinary corporate data, not just scraping the public internet, to train their models, and this small deal shows the real friction that can come with treating employee records as an asset to be sold.
Does this kind of data sale represent a legitimate and inevitable new revenue source for distressed companies, or does it put workers’ privacy at risk without their consent?
What Worked For The Company
The data set, including worker emails, chat messages, spreadsheets, and operations records, is a real, useful training resource for Google’s AI models, and this tiny purchase sits inside a company whose own Q2 2026 results, reported July 22, 2026, showed just how much it’s spending to feed its AI ambitions. Revenue grew 24% to $119.8 billion, Google Cloud revenue surged 82% to $24.8 billion, and Alphabet Inc. (NASDAQ:GOOGL) raised its 2026 AI infrastructure spending forecast to $195-$205 billion. Ten million dollars for Spirit’s data is a rounding error against that spending, but it fits the same appetite for training material that’s driving those numbers. Reddit’s licensing deals reportedly bring in around $60 million a year, showing this kind of purchase fits an already-growing type of business.
What Didn’t Work For The Company
The Association of Flight Attendants-CWA argues that links across the data sets could allow specific people to be pieced back together even after names are removed, a real privacy risk that has already succeeded in delaying court approval. Alphabet Inc. (NASDAQ:GOOGL)’s own Q2 results also show the tension this deal sits inside, since free cash flow turned deeply negative at $5.9 billion as capital expenditures hit a record $44.9 billion. It means Alphabet is spending enormous sums on AI infrastructure while also facing real reputational risk from a comparatively tiny data purchase that unions and privacy advocates are actively fighting.
Spirit’s Situation
Spirit is selling off assets in bankruptcy after shutting down its business in May due to high debt and fuel costs. It is making this data sale one of the few remaining ways for the defunct airline’s estate to recover value for creditors.
Conclusion
Ten million dollars is a trivial sum for Alphabet Inc. (NASDAQ:GOOGL)’s Google. The union’s objection shows that even bankrupt companies’ data sales now come with questions about whose consent should be required before employee records get folded into an AI training set.
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Disclosure: None. This article is originally published at Insider Monkey.
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