AI Startup Giga Faces $3 Million Extortion Attempt Over Alleged Leaked Data

San Francisco-based AI startup Giga has revealed that it is being targeted in an extortion attempt in which a group of unidentified individuals is demanding $3 million in cryptocurrency, according to company statements and public filings. 

The co-founder and CEO of Giga, Varun Vummadi, took to social media to assert that a “small group of individuals” has illegally obtained confidential company data and is threatening to release manipulated excerpts to the public unless the ransom is paid. Giga’s official statement describes these actions as extortion and blackmail, with law enforcement notified of the alleged incident. 

According to screenshots shared by Vummadi, the ransom note instructs the startup to convert funds into Monero (XMR), a privacy-focused cryptocurrency, and transfer roughly $3 million to an anonymous account. 

Giga has denied any wrongdoing and stated that the threatened allegations have “nothing to do with our product or the way we are creating value for our customers.” The company emphasized its ongoing commitment to product development and reiterated that its AI support agent offerings remain secure. 

Industry observers note that extortion campaigns tied to data breaches are increasingly common, especially as attackers leverage stolen internal data or threaten reputational harm to coerce targets into payment. Cybersecurity experts recommend involving law enforcement and avoiding direct payment to anonymous actors, as this can incentivize further criminal demands.