According to CNET, the controversial Neon app that pays users to record phone calls for AI training has quietly returned to both iOS and Android app stores after abruptly going offline in September. Founder Alex Kiam’s company is currently offering users 30 cents per minute up to $30 through 5 p.m. ET on Thursday, November 6, with unclear regular rates beyond that window. The app soared to top download charts before being pulled when TechCrunch discovered a security flaw that allowed access to other users’ call recordings and transcripts. The biggest change in this November 3 relaunch is that Neon now only records and pays for calls between other Neon app users, shifting from its previous model that raised legal concerns about recording non-consenting parties.
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The privacy problem hasn’t gone away
Here’s the thing: even with this “opt-in only” model, the privacy concerns are still massive. The company’s own terms of service grant Neon the right to “publicly display, reproduce, and distribute call recordings in any media formats and through any media channels.” That’s incredibly broad language that could theoretically allow your conversations to end up anywhere. And while they claim to anonymize data, privacy experts warn that AI can often infer identities and sensitive information even from supposedly anonymized recordings. Basically, you’re trading your most private conversations for pocket change.
A clever legal workaround?
By restricting recording to only Neon-to-Neon calls, the company might have found a way to sidestep tricky consent laws that vary by state. Previously, there were serious questions about whether recording calls with non-users violated notification and consent requirements in many jurisdictions. Now? Everyone using the app has technically agreed to be recorded. But is this really informed consent when most people don’t read terms of service? And let’s be real – how many people are actually going to have conversations worth recording when both parties know they’re being recorded for AI training?
Remember the security mess
Let’s not forget why this app disappeared in the first place. The security flaw that TechCrunch uncovered was no minor bug – it allowed complete strangers to access your call recordings, transcripts, and metadata. That’s catastrophic for an app built around recording private conversations. The founder claims they’ve addressed the issue, but given how quickly they scaled and how fundamental that security failure was, I’d be extremely skeptical about trusting them with sensitive communications. Once burned, twice shy, as they say.
The AI training gold rush
What’s driving this whole bizarre business model? Pure, unadulterated AI hunger. Companies are desperate for real-world conversational data to train their models, and they’re willing to pay for it. Neon sits in the middle, collecting conversations from users and selling them to AI developers. It’s basically a data broker for your voice conversations. The founder himself admitted the appeal is simple: “We’re giving people free money for something they would do anyway.” But is any amount of money worth potentially having your private conversations end up training corporate AI systems?
