Yes. When a startup shuts down, the product stops but the code does not lose its value. Years of commits, tests, migrations and fixes sit in a private repo that nobody touches. To an AI lab, that history is useful training data. It shows how a real team built and changed real software under pressure, and that is the one thing labs cannot generate for themselves.
This page is for founders and former teams holding the code of a company that closed, paused or pivoted. It covers products that failed, products that never launched, and the parts of a pivot that were left behind. Whether the startup made money makes no difference to the value of its code.
What does matter is who holds the rights now. If the company still exists, even as a dormant shell, it usually owns the code and the company signs. If the company was dissolved, ownership may have passed to someone else, such as a founder, a holding company or an investor. Check before you submit anything. If the codebase was sold as part of a wind-down, it is no longer yours to license.
What should I do with the code after a startup fails?
Keep it, and keep the history intact. Do not delete the organization or let the Git hosting plan lapse before you decide. Make a list of the repos and note who holds the rights to each. Then license what you can. It costs nothing to request access, and once the repos are connected you see a real per-repo estimate. If the founders want to restart one day, nothing stops them, because licensing leaves you with full ownership and use of the code.
If several founders or a board need to agree, get that agreement in writing first. It makes signing quick when the time comes.