The AI Industry Is Secretly Powered by Homeless People
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The AI Industry Is Secretly Powered by Homeless People
"The online job marketplace connects contractors - often struggling unemployed workers - with companies like OpenAI, the creator of ChatGPT. The gigs have a ghoulish tint, since the basic idea is for former employees to teach AI how to do their old jobs. Adding insult to injury, Mercor is known for treating its workers poorly."
"In the video, reporter Karen Hao interviews a series of data workers - many of whom wanted to remain anonymous for fear of retaliation - about what it's like to be employed by what the nonprofit calls "America's AI sweatshops." Perhaps the project's most eye-catchingly tragic stat comes from 2025 research by the Communication Workers of America, which found that among these tenuous workers training AI systems, a staggering 22 percent said they'd experienced homelessness due to their meager wages."
"According to his piece, about 86 percent of data workers - those who may be training the AI models you use every day - struggled to pay their bills last year. Nearly one-quarter relied on public assistance programs, such as food stamps and Medicaid. One interviewee who went by the pseudonym Jen told Hao that she faced an uphill battle in the job market after graduating from an Ivy League school with a PhD more than a year ago."
An online job marketplace connects contractors, often unemployed workers, with companies that use AI systems. The work commonly involves former employees teaching AI how to perform tasks from their previous jobs. Workers describe poor treatment and fear of retaliation, leading many to remain anonymous. A nonprofit characterizes these workplaces as “America’s AI sweatshops.” Research from 2025 reports that 22 percent of tenuous workers training AI systems experienced homelessness due to low wages. Another study reports that about 86 percent of data workers struggled to pay bills, and nearly one-quarter relied on public assistance such as food stamps and Medicaid. One worker described moving in with family and relying on food stamps after failing to find stable work, then taking a higher-paying AI gig out of desperation.
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