LAUSD AI Deal Under Investigation
A Los Angeles Times investigation revealed a failed AI deal within LAUSD schools, sparking a probe into the superintendent. The deal reportedly involved a charismatic educator and a connected consultant, raising questions about procurement and influence within the district's tech initiatives.
The FBI investigation now focusing on Superintendent Alberto Carvalho involves early morning raids on his San Pedro home and district office. Agents also searched the Florida home of Debra Kerr, a consultant who assisted the AI vendor, AllHere, in securing the deal with the nation's second-largest school district. The deal in question was for a $6 million contract with the Boston-based startup AllHere to develop an AI chatbot named "Ed". This tool was publicly launched in March 2024, with promises that it would provide tailored academic guidance to students and families. Behind the scenes, AllHere was reportedly collapsing. The multimillion-dollar project failed within months and never saw a full launch. The district had paid approximately $3 million of the $6 million contract for services that were rendered. The founder of AllHere, Joanna Smith-Griffin, was indicted on charges of defrauding investors just eight months after appearing alongside Carvalho to unveil the chatbot. The company ultimately filed for bankruptcy. Investigators are examining the longtime association between Carvalho and Kerr, which dates back to their time in the Miami-Dade County Public Schools system. Kerr has filed a claim stating that the now-defunct AllHere owes her $630,000. While search warrant affidavits remain sealed and no charges have been filed against Carvalho or Kerr, the probe is centered on financial issues connected to the failed chatbot contract. In response to the federal investigation, the Los Angeles Board of Education has placed Superintendent Carvalho on indefinite administrative leave.
