Business
How private investors stand to profit from billions in L.A. County sex abuse settlements
Walking out of a Skid Row market, Harold Cook, 42, decides to play a game.
How long after opening YouTube will it take for him to see an ad asking him to join the latest wave of sex abuse litigation against Los Angeles County?
“I can literally turn my phone on right now, something’s going to pop up,” said Cook, opening the app.
Within a few seconds, a message blares: “They thought you’d never speak up. They figured you was too young, too scared, too Black, too brown, too alone. … L.A. County already had to cough up $4 billion to settle these cases. So why not you?”
Since the historic April payout to resolve thousands of claims of sex abuse in county-run facilities, law firms have saturated L.A.’s airwaves and social media with campaigns seeking new clients. For months, government officials have quietly questioned who is financing the wall-to-wall marketing blitz.
The ad Cook heard was from Sheldon Law Group, one of several law firms active in sex abuse litigation in California that receive backing from private investors, according to loan notices and SEC filings. The investors, which often operate through Delaware companies, expect to profit from the payouts to resolve the cases.
Sheldon, based in Washington, D.C., has been one of the most prolific L.A. advertisers. The firm has already gathered roughly 2,500 potential clients, according to a list submitted to the county. The lawsuits started being filed this summer, raising the prospect of another costly settlement squeezed out of a government on the brink of a fiscal crisis.
“We act in the best interests of our clients, who are victims in every sense of the word and have suffered real and quite dreadful injuries,” a spokesperson for Sheldon Law Group said in a statement. “Without financial and legal support, these victims would be unable to hold the responsible parties, powerful corporate or governmental defendants, accountable.”
The financing deals have raised alarms among lawmakers, who say they want to know what portion of the billions poised to be diverted from government services to victims of horrific sex abuse will go to opaque private investors.
Kathryn Barger, a member of the L.A. County Board of Supervisors, said she was contacted by a litigation investor who sought to gauge whether sex abuse litigation could be a smart venture. “This is so predatory,” Barger told The Times.
(Juliana Yamada/Los Angeles Times)
“I’m getting calls from the East Coast asking me if people should invest in bankrupting L.A. County,” Supervisor Kathryn Barger said. “I understand people want to make money, but I feel like this is so predatory.”
Barger said an old college friend who invests in lawsuits reached out this spring attempting to gauge whether L.A. County sex abuse litigation could be a smart venture. Barger said the caller referred to the lawsuits as an “evergreen” investment.
“That means it keeps on giving,” she said. “There’s no end to it.”
The county has spent nearly $5 billion this year on sex abuse litigation, with the bulk of that total coming from the $4-billion deal this spring — the largest sex abuse settlement in U.S. history.
The April settlement is under investigation by the L.A. County district attorney office following Times reporting that found plaintiffs who said they were paid by recruiters to join the litigation, including some who said they filed fraudulent claims. All were represented by Downtown LA Law Group, which handled roughly 2,700 plaintiffs.
Downtown LA Law Group has denied all wrongdoing and said it “only wants justice for real victims.” The firm took out a bank loan in summer 2024, according to a financing statement, but a spokesperson said they had no investor financing.
Lawyers who take the private financing say it’s a win-win. Investors make money on high-interest rate loans while smaller law firms have the capital they need to take on deep-pocketed corporations and governments. If people were victimized by predators on the county’s payroll, they deserve to have a law firm that can afford to work for free until the case settles. Money for investors, they emphasize, comes out of their cut — not the clients’.
But critics say the flow of outside money incentivizes law firms to amass as many plaintiffs as possible for the wrong reasons — not to spread access to justice, but rather ensure hefty profit for themselves and their financial backers.
“The amount of money being generated by private equity in these situations — that’s absurd,” said former state lawmaker Lorena Gonzalez, who wrote the 2019 bill that opened the floodgate for older sex abuse claims to be filed. “Nobody should be getting wealthy off taxpayer dollars.”
For residents of L.A.’s poorest neighborhood, ads touting life-changing payouts have started to feel inescapable.
Waiting in line at a Skid Row food shelter, William Alexander, 27, said his YouTube streaming is punctuated by commercials featuring a robotic man he suspects is AI calling on him to sue the county over sex abuse.
Across the street, Shane Honey, 56, said nearly every commercial break on the news seems to feature someone asking if he was neglected at a juvenile hall.
In many of the ads, the same name pops up: Sheldon Law Group.
Austin Trapp, a case worker in Skid Row, was among several people in the neighborhood who said ads seeking people to join sex abuse litigation against L.A. County have become increasingly common.
(Gina Ferazzi/Los Angeles Times)
Sheldon’s website lists no attorneys, but claims the firm is the “architect” behind “some of the largest litigations on Earth.” They list their headquarters online at a D.C. virtual office space, though the owners on their most recent business filing list their own addresses in New York. The firm’s name appears on websites hunting for people suffering from video game addiction, exposure to toxins from 9/11, and toe implant failure.
Sheldon Law Group was started by the founder of Legal Recovery Associates, a New York litigation funding company that uses money from investors including hedge funds to recruit large numbers of plaintiffs for “mass torts,” cases where many people are suing over the same problem, according to interviews with former advisers, court records and business filings.
Those clients are gathered for one of their affiliated law firms, including Sheldon Law Group, according to two people involved in past transactions.
Ron Lasorsa, a former Wall Street investment banker who said he advised Legal Recovery Associates on setting up the affiliate law firms, told The Times it was built to make investors “obscenely rich.”
“It’s extremely profitable for people who know what the hell they’re doing,” Lasorsa said.
The idea, he says, emerged from a pool cabana at a Las Vegas legal conference called Mass Torts Made Perfect in fall 2015.
A man visiting friends on Skid Row holds up his phone showing an ad recruiting clients for sex abuse case in Los Angeles County on December 11, 2025 in Los Angeles, California.
(Gina Ferazzi/Los Angeles Times)
Lasorsa had just amassed 14,000 clients for personal injury lawsuits in one year using methods that, he now says, were legally dubious. A favorite at the time: using call centers in India that had access to Americans’ hospital records and phoning the patients to see if they were feeling litigious.
Near the pool at a Vegas hotel, Lasorsa said Howard Berger, a former hedge fund manager barred by the SEC from working as a broker, asked if he could turbocharge the caseload of Legal Recovery Associates, where he worked as a consultant.
Lasorsa said he soon teamed up with the founders of LRA — Gary Podell, a real estate developer, and Greg Goldberg, a former investment manager — to create “shell” law firms based in Washington. The nation’s capital is one of the few places where non-lawyers can own a law firm, profiting directly from case proceeds.
Goldberg, who is not licensed to practice law in D.C., would become a partner in at least six D.C. law firms including Sheldon Law Group by 2017, according to a contract between Legal Recovery Associates and a hedge fund that financed the firms’ cases.
Sheldon, which said it was responding on behalf of Podell, said in a statement that all their partners are lawyers, though declined to name them. Goldberg did not respond to a repeated request for comment.
The Sheldon spokesperson said Legal Recovery Associates is a separate entity that engages in its “own business and legal activities.”
Investors typically make money on litigation by providing law firms with loans, which experts say carry interest rates as high as 30%, representing the risk involved. If the case goes south, investors get nothing. If it settles, they make it all back — and then some.
Lasorsa said he helped the company gather 20,000 claims using the same Indian call centers before a bitter 2019 split. He later accused the owners of unethical behavior, which led to a half-million dollar settlement and a non-disparagement agreement that he said he decided to breach, leading to a roughly $600,000 penalty he has yet to pay, according to a court judgment.
Lasorsa was also ordered to delete any disparaging statements he’d made, according to the judgment.
D.C. law firms with non-lawyers as partners must have the “sole purpose” of providing “legal services,” according to the district’s bar. Some attorneys have argued no such service was provided by the firms associated with Legal Recovery Associates.
Troy Brenes, an Orange County attorney who co-counseled with one of the firms over flawed medical devices, accused the company of operating a “sham law firm” as part of a 2022 court battle over fees.
“The sole purpose … appears to have been to allow non-lawyers to market for product liability cases and then refer those cases to legitimate law firms in exchange for a portion of the attorney fees without making any effort to comply with the D.C. ethics rules,” Brenes wrote.
A spokesperson for Sheldon and LRA noted in a statement that “no court or arbitration panel has ever concluded” that its business structure violates the law.
In the medical device cases, the affiliate firm, which was responsible for funding the marketing campaign, took 55% of recoverable attorney fees, according to an agreement between the two firms. The profit divide mirrors the 55/45 breakdown between Sheldon Law Group and James Harris Law, a two-person Seattle firm they have partnered with on the L.A. County sex abuse cases, according to a retainer agreement reviewed by The Times.
A person on Skid Row in downtown L.A. shows an ad on their phone seeking plaintiffs to joint a lawsuit over sexual abuse in juvenile halls.
(Gina Ferazzi/Los Angeles Times)
This summer, ads linking to a webpage with the name of James Harris appeared online, telling potential clients they could qualify in 30 seconds for up to $1 million. When a Times reporter entered a cell-phone number on one of the ads, a representative who said they worked for the firm’s intake department called dozens of times.
After The Times described these marketing efforts in a story, Harris emphasized in an email that he did not know about the ads or the persistent calls and said they were done by his “referring firm.” The landing page the ads led to was replaced with the name of Sheldon Law Group.
Harris said his firm and Sheldon, which he described as “functioning as a genuine and independent co counsel law firm,” have “been highly selective and have only prosecuted cases that we believe are legally and factually meritorious.”
“I continue to believe that lawyer advertising, when conducted ethically and without misleading claims, serves as a vital tool for raising public awareness about legal rights and available recourse, particularly for survivors of abuse seeking justice,” he said.
Over the last five years, experts say, the practice of funding big mass tort cases has boomed in the U.S.
Of the five main firms in L.A. County’s initial $4-billion sex abuse settlement, two took money from outside investors shortly before they began suing the county, according to public loan filings.
The loans to both Herman Law, a Florida-based firm that specializes in sex abuse cases, and Slater Slater Schuman, a New York-based personal injury firm, came from Delaware-registered companies. Deer Finance, a New York City litigation funding firm that connects investors with lawyers, is listed on business records for both companies.
The loan documents do not specify which of the firms’ cases were funded, but show each deal was finalized within months of the firms starting to sue L.A. County for sex abuse. Neither firm responded to questions about how the outside funding was used.
Slater, which received the loan in spring 2022, represents more L.A. County plaintiffs than any other firm, by far.
Slater’s caseload surged after the county signaled its plan to settle for $4 billion in October 2024. Several of the main attorneys on the case told The Times they stopped advertising at that point, reasoning that any new plaintiffs would now mean less money for the existing ones.
The next month, Slater Slater Schulman ran more than 700 radio ads in Los Angeles seeking juvenile detention abuse claims, according to X Ante, a company that tracks mass tort advertisements.
By this summer, the number of claims jumped from roughly 2,100 to 3,700, according to court records, catapulting Slater far beyond the caseload of any other firm.
This fall, another Delaware-registered company took out a lien on all of Slater’s attorney fees from the county cases, according to an Oct. 6 loan record. The law firm assisting with the transaction declined to comment.
“These are extraordinarily complex cases and litigating these cases effectively requires resources,” said an outside attorney representing Slater in a statement, responding to questions from The Times.
The firm, which also represents roughly 14,000 victims in the Boy Scouts sex abuse cases, was singled out by the judge overseeing the litigation this fall for “procedural and factual problems” among its plaintiffs. The firm was one of several called out by insurers in the litigation for using hedge fund money to “run up the claim number.”
The firm has said they’re working “tirelessly” to address the issues and justice for survivors is its top priority.
April Mannani, who says she was assaulted in the 1990s by an officer while she was housed at MacLaren Children’s Center, said she feels lawyers on the sex abuse cases are putting profits ahead of the best interests of clients.
(Jimena Peck/For The Times)
Many plaintiffs told The Times they were discouraged to see how much money stood to be made for others off their trauma.
April Mannani, 51, sued L.A. County after she said she was raped repeatedly as a teenager at MacLaren Children’s Center, a shelter now notorious for abuse. Mannani accepts that her lawyers are entitled to a cut for their work on the case, but said she was disheartened watching the numbers of cases suddenly skyrocket this year. With the district attorney investigating, a pall has been cast over the entire settlement.
“We’ve been made fools of and we were used for financial gain,” she said. “They all just see it as a money grab.”
That firm that represents her, Herman Law, has filed roughly 800 cases against L.A. County. Herman Law took out a loan in 2021 from a Delaware-registered company affiliated with Deer Finance, according to a loan notice. The firm said they use traditional bank loans for “overall operations.”
Herman Law is the most prolific filer of county sex abuse cases outside of L.A. County since the state changed the statute of limitations.
Herman Law has filed about half of these roughly 800 sex abuse lawsuits that have been brought outside of L.A. County, according to data reviewed by The Times.
Herman Law has sued several tiny counties, where public officials say they’ve been inundated with advertisements on social media and TV looking for plaintiffs. Some counties say they threw out relevant records long ago and have no way to tell if the alleged victim was ever in local custody.
A judge fined Herman Law about $9,500 last month for failing to dismiss Kings County from a lawsuit despite presenting no evidence the county ever had custody of the victim, calling the claim “factually frivolous” and “objectively unreasonable.” An attorney for Herman Law said in a court filing the client believed she’d been in a foster home there, and the lack of records didn’t conclusively establish anything.
“There are not records. There’s nothing that exists,” said Jason Britt, the county administrative officer for Tulare County, which has been sued at least eight times by Herman Law. “Counties at some point are not gonna be able to operate because you’re essentially going to bankrupt them.”
The firm said its clients are always its top priority.
“No lender or financial relationship has ever influenced, directed or played any role in legal strategy, client decisions or case outcomes, including any matters involving the Los Angeles County,” the firm said. “Herman Law’s work is driven solely by our mission to advocate for survivors in their pursuit of justice and healing.”
Joseph Nicchitta, L.A. County’s acting chief executive officer, said he believed the region’s social safety net was now “an investment opportunity.” In an October letter to the State Bar, he called out the “explosive growth” of claims, arguing a handful of firms were “competing to bring as many cases as possible” to the detriment of their existing clients.
He estimated that attorney fees in the lawsuit would amount to more than $1 billion. “It begs reform,” he wrote.
Business
Paramount’s Delrahim slams ‘fear-mongering’ and partisan politics clouding Warner Bros. deal
Paramount Chief Executive David Ellison has been circling the globe, meeting government regulators who will ultimately decide the fate of his controversial $111-billion takeover of Warner Bros. Discovery.
Last week, Ellison spent two hours answering questions from U.S. Justice Department antitrust lawyers in a bid to secure a key government approval — one that few people believe is in doubt because of President Trump’s strong support of tech billionaire Larry Ellison and his son’s ambitions to amass more power.
Throughout his travels, David Ellison has been accompanied by a savvy wingman: Makan Delrahim.
Delrahim, Paramount’s chief legal officer, served as the nation’s top antitrust regulator in the Justice Department during Trump’s first term. The 56-year-old Iranian American, who grew up in Los Angeles, is the architect of shrewd moves that have brought Paramount within reach of its blockbuster merger that would redefine Hollywood.
Politics have permeated the process — even before Trump announced he would get involved. Opponents have been suspicious of the Ellisons, given the family’s ties to Trump and programming changes to redefine Paramount’s CBS, including last month’s departure of late-night comedian Stephen Colbert and a shakeup at “60 Minutes,” CBS’ newsmagazine.
Buying Warner Bros. Discovery would give the Ellisons control of both CBS News and CNN.
Paramount’s bid for Warner Bros. has sparked dread in Hollywood for another reason, too: Thousands of jobs already have vanished through a string of media mergers.
More than 5,000 artists and entertainment industry workers have signed an open letter, calling on California Atty. General Rob Bonta to try to block the deal on antitrust grounds.
In an interview with The Times, Delrahim responded to concerns and criticisms. This interview has been edited for length and clarity:
Where does the regulatory process stand?
We are still going through the regulatory approval process. We actually started planning for the regulatory approval filings last summer. We knew we were going to be pursuing this transaction but it took a few months longer to sign the transaction than we thought. There were some interveners [Netflix, Comcast], but we planned ahead.
Do you have a commitment from Trump or his administration that you’ll get a thumbs up?
There are no deals with the president. We have a deal with the Warner Bros. shareholders. We’ve submitted [applications] to the governments of Europe, Canada, U.K. and the U.S., and that’s where it is.
You got a head-start because you filed a regulatory approval in December — months before Paramount had a deal with Warner. Why so soon?
We were always very skeptical [the Netflix deal] would ever go through. The only way to really show the [Warner] board that our deal would get through — because it doesn’t have antitrust problems — was to move as fast as we could.
One of the benefits being a former [DOJ] enforcer and having a team of outside lawyers who are also former colleagues and enforcers was that we anticipated what the government would ask for. Those were questions that we would have asked, and so we provided those answers.
Your timeline is aggressive. Some suggest Paramount wants this deal done before the mid-term elections.
I don’t think it’s aggressive. It has nothing to do with the midterms. The midterms do not change the officials at the Justice Department or the FCC — we have that minor application there. The midterms have no effect on the European Commission or anybody else. We’ve been very transparent and proactive with members of Congress and with the state attorneys general and the federal authorities.
Are you preparing to defend a potential antitrust challenge from Atty. General Bonta?
Well, no matter what field you’re in, whether it’s antitrust or whether you’re preparing for a football game, you always prepare the best you can for the worst, and you hope it never gets there. So, we’re preparing for challenges from anybody and everybody. But I don’t think any serious antitrust enforcer who looks at the facts, the law, the economics of this transaction will see an antitrust violation.
Why are you so confident?
There’s no element of this merger that is anti-competitive. Once you look at it, it’s incredibly pro-competitive. It increases output, it increases jobs, and it lowers the cost to the consumers. If you actually try to block this deal, you’re going to harm consumers, you’re going to harm creative talent, because you’re going to harm the creative ecosystem — the vision that David [Ellison] is trying to deploy here. It’s transformative from the efficiencies that it creates.
David Ellison has promised to release 30 films a year. Was that commitment to show that this merger will not be a repeat of Walt Disney Co.’s 2019 purchase of Fox?
I’m quite familiar with that one because I was at the Justice Department and reviewed it. Disney-Fox was a transaction with a different thesis. Disney wanted to get into streaming and they wanted to get scripted series. It wasn’t about studios trying to increase output.
Our transaction, as David has described, is motivated to create more content to feed the theaters, then streaming. We have a natural economic incentive to create more content. We’ll still be in fourth place after this transaction on the streaming side — almost half the size of Netflix.
David Ellison hasn’t made any commitments on the television side or pledged pledge to keep the various TV studios intact. Why?
I don’t think there’s much of an overlap on the television studios. Look, you have incredible studios in HBO, Warner Bros. Television, certainly our own studio. We’re not paying money to limit supply. It’s the exact opposite.
There is overlap between CBS News and CNN. How are regulators looking at that issue?
We’re very proud of CBS News and hopefully CNN, post-transaction. There is very limited overlap. Why? Because CBS News only airs a few hours a week of programming whereas CNN is 24/7, and it has international reach.
Antitrust regulators are going to see that it’s going to create synergistic effects. You might be able to cross-program and more people will be exposed to the incredible programming of CBS News. They’ll benefit from each other’s independent strengths.
During the first Trump administration, you said merger conditions were problematic because it’s difficult for the government to enforce behavioral remedies. Has your thinking changed?
No, I’ve been quite consistent. If there’s an antitrust problem, you need a divestiture [selling assets]. I don’t think there’s a remedy needed in this transaction. But having said that, we’re happy to engage with regulators to discuss where they see a problem and a possible solution. We’re always wanting to engage in constructive dialogue.
Would Paramount spin off CNN?
I don’t see that. I can’t see any antitrust reason to do so. That would be a weaponization of the antitrust law, and that would not be appropriate.
Many people in Hollywood view the merger with trepidation because of the prospect of more job losses. Others see it through a political lens. How do you evaluate the politics?
Politics is part of life. It’s part of the beautiful process of democracy. Generally, we are very empathetic to the folks in Hollywood, but this transaction will actually create more and better and exciting jobs. David is an absolute lover of films; he’s a filmmaker himself. For the first time, you are getting an owner who comes from the creative side.
Let’s be honest. There’s a lot of fear-mongering, particularly from people in Washington, D.C. They are running a political campaign. Some of these people are trying to inflict harm on this transaction really because of their own antisemitic views. Regulators and law enforcement officials will see right through that.
Do regulators share others’ concerns about the merger debt — $79 billion — for the combined company?
Some regulators appropriately have asked about it. They say: ‘This is what we have heard, that you guys are not going to be around because of this debt,’ which is just silliness. David and his family are owner-operators. They’re not rented CEOs. They have over 50% ownership. They put their money at stake and my money is on them.
Business
Move over, Grogu. Internet culture soars as ‘Backrooms’ and ‘Obsession’ top the box office
Internet culture is showing up in a big way in theaters, as low-budget horror films “Backrooms” and “Obsession” led this weekend’s box office and beat out big franchise films like “Star Wars: The Mandalorian and Grogu.”
A24’s “Backrooms” topped the charts with $81.5 million in the U.S. and Canada in its opening weekend, according to studio estimates. The film is directed by 20-year-old YouTuber Kane Parsons, who based it on his internet series of the same name.
“Backrooms,” which reportedly had a production budget of about $10 million, stars Chiwetel Ejiofor as a furniture store owner who finds a mysterious portal in his basement. The film made a total of $118 million worldwide.
In second place was Focus Features’ “Obsession,” which hauled in $26.4 million in its third weekend in theaters, up 10% from the previous weekend’s total. The film, which had a production budget of less than $1 million, has now grossed $104.7 million domestically for a global total of $148 million.
“Obsession” director Curry Barker is also known for his YouTube sketch comedy channel.
The success of two YouTube-native filmmakers at the box office indicates the growing power of the platform — and online culture as a whole — in attracting audiences to cinemas.
Walt Disney Co. and Lucasfilm’s “The Mandalorian and Grogu” fell to third place this weekend with a domestic gross of $25 million. Lionsgate’s musical biopic “Michael” ($11.7 million) and Sony Pictures’ family comedy “The Breadwinner” ($7.5 million) rounded out the top five at the box office, according to Comscore data.
Business
The robot puppeteers of Silicon Valley teaching humanoids how to make your morning coffee
Fernando Flores can spend eight hours a day pouring the same cup of coffee.
He is not a barista. He’s a robot puppeteer, trying to train humanoids.
He manipulates mechanical arms remotely, using hand and arm sensors to make them pick up a pot of coffee, pour it into a mug and put the pot back in the coffee maker. Flores checks for spills, then empties the mug back into the pot by hand and does it again — hundreds of times.
“The repetitiveness, it can cause some discomfort,” said Flores, who has the title of senior robotic pilot at San Francisco startup Encord. “It becomes second nature after a while.”
This Sisyphus of Silicon Valley is on the front lines of a rapidly expanding industry of robot trainers, preparing to teach and operate the army of humanoid robots scheduled to march out of nearby factories in the coming year. Encord practices, records and sells data about movement to the companies racing to bring humanoids to homes, offices and factories.
If tech companies’ optimistic plans are to be believed, a swarm of American-built robots is about to hit the market.
Tesla’s Fremont factory stopped car production this year to make way for production lines for its Optimus robots, with unbelievable plans to ramp up capacity to 1 million units a year. Palo Alto-based 1X Technologies is already manufacturing its 66-pound, 5-foot-6 humanoid named Neo at its factory in Hayward. The company received 10,000 preorders, and its first shipment is expected later this year. Figure AI’s humanoid factory in San Jose has increased its manufacturing capacity to produce one Figure 03 robot an hour, with the goal of producing 12,000 a year.
Fernando Flores demonstrates the articulation of a robot performing a whisking motion at Encord on May 21.
(Paul Kuroda / For The Times)
Goldman Sachs projects the global market for humanoids could reach $38 billion by 2035.
The AI of these humanoid robots needs an immense amount of data on human movement. How humans write, speak, code and compose was easily scraped off the internet, but the bots need more information to master how to stand, step, lift, squeeze, pour and perform other physical movements. That is where companies like Encord come in.
The $10 billion invested in robotics in 2026, according to CB Insights, has spawned an industry focused on training robots. Initially, that meant humans strapping iPhones to their foreheads, recording actions like cooking, cleaning and performing household chores. That, however, doesn’t capture the exact torque, force and grip required for a robot hand to work flawlessly.
Now, humans are directly guiding robots through expensive rigs that let them control the robots’ movements. Data collected using robot arms offer richer insights into motor skills and object manipulation. Encord charges clients up to $1,000 per hour for training data.
The information gathered from trainers controlling robots is “super important to bridge the next level of learning,” where robots will learn to correct mistakes and do the chores on their own, said Vineeth Velmurugan, head of robotics learning at Encord.
The company is already working with some of the top companies in robotics, but said it couldn’t share most names. Among the clients it could mention were Toyota Research Institute and Weave, which already has laundry-folding robots in a few homes.
Brian Gonzalez pulls an ethernet cable using a robotic arm at startup Encord on May 20.
(Paul Kuroda / For The Times)
Many of the new robotic data companies are focusing on industrial use cases. Robots can perform better in a structured, predictable environment, like a factory or warehouse.
Home tasks are tougher, as layouts and tasks are more varied and messy. While many bots have mastered walking, they still struggle to open doors, fridges and washing machines smoothly. They don’t know where or how to grasp a doorknob, handle or door edge or how much pulling, pushing or twisting force to apply.
Flores has mastered making the robot arms pour coffee, but he still often spills. When that happens, he deletes records of the attempt.
“Typically, we don’t want any mistakes,” he said. “If we have more than three consecutive mistakes within a 15‑second window, that’s not going to be good data.”
Inside Encord’s test facility in Hayward, it has replicated a standard American home with a fully furnished living room, kitchen and bathroom.
In the living room, a pilot rearranges an untidy study desk. She first scatters AA-size batteries, pens and scissors on the table, and walks back to the nearby control rig to make the robot arms place each one inside the tray of a desk organizer.
Depending on the day’s training, the pilots could be opening and closing refrigerator doors, whisking liquids in a bowl, sorting silverware or turning a water faucet on and off over and over until the robot arms get it right.
Cortney Weintz, left, and Tony Schiller record data with cameras at Encord.
(Paul Kuroda / For The Times)
In another corner of the facility, people wearing smart glasses place and pick up playing cards and sort plastic plates by hand, collecting first-person videos.
One key skill for the coming bot invasion: plugging in cables.
Companies want robots that can crawl into duct spaces, identify ports and plug cables to help build the massive data centers needed for AI. Encord replicated a real data center server rack, where an operator inserts blue cables into penny-sized sockets all day.
Many companies have entered this business. Meta-backed Scale AI and Palo Alto-based Micro1 are major players in the space. China has more than 40 state-owned robot data-collection facilities where hundreds of on-site humans mimic train bots how to move in the real world.
In Watertown, Mass., Tutor Intelligence has set up a 100-robot facility dedicated to harvesting movement data. Its robot arms, which are being trained to do factory work, are controlled by a human team split across Mexico, the Philippines and Boston. This is in part to train its robot, Sonny, which will hit the market later this year.
Elaine Batchlor sorts screws and bolts with a robot in a mockup at Encord.
(Paul Kuroda / For The Times)
“We built the Data Factory to bootstrap the initial intelligence for the Sonny robot, so that we can begin to deploy Sonny into the field,” said Josh Gruenstein, co-founder of Tutor. Ten of its remote operators are based in Boston, and the rest are international.
Remote operation is emerging as an integral part of the humanoid robot business. Employing teleoperators in countries where wages are much lower than in the U.S. could, in theory, mean a robot controlled by a human in another country could do a task at a fraction of the cost of having an American do it.
This month, a humanoid robot cleaning service in San Francisco called Gatsby completed a robot cleaning of a U.S. home using a teleoperator in Mexico.
The technology is still evolving, said Aron Frishberg, co-founder of Gatsby, but being a first mover means Gatsby is getting more training.
“There’s obviously stuff that goes wrong,” he said. “It’s really hard to get precise hand movements or arm movements and grab something.”
Encord co-founder Ulrik Hansen said it will be setting up a teleoperations center in its Hayward facility in the next three months. Even as more robots are deployed and master increasingly sophisticated tasks, they will still need humans to occasionally take control remotely.
“They will need some exception handling when they get things wrong,” he said.
Hundreds of teleoperators will learn where the system succeeds, where it breaks and step in when needed. Once those patterns emerge, Hansen said, they can move teleoperations to cheaper locations abroad or to the Midwest.
Back in Hayward, Flores created new coffee-pouring challenges for his robot arms. He changed what was on the counter around the coffee maker and moved the mug to different spots. It takes a lot of know-how to puppet and train a robot, he said.
“A lot of people would (guess) this might be easy, this is dumb,” Flores said. “There actually is thought here. There actually is critical thinking.”
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Connecticut15 minutes agoSouth Carolina man found cutting down light poles in Rocky Hill, police say
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Delaware20 minutes agoOver 1,000 pets will be looking for homes at mega adoption event in Delaware
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Florida27 minutes agoMan in Florida jailed after reported attempted kidnapping at church
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Georgia30 minutes agoGeorgia man arrested after confessing to 1989 New Jersey cold case murder, authorities say
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Hawaii35 minutes agoThe Hawaii Airport Check First-Time Visitors Never See Coming