How L.A. Unified's AI gamble led to FBI raids

Los Angeles Unified schools Supt. Alberto Carvalho introduced “Ed” the AI chatbot amid fanfare in March 2024, touting a revolutionary tool that would put the district at the leading edge of school technology.

- By Richard Winton, Howard Blume and Brittny Mejia

But the multimillion-dollar project failed within months and never fully launched.

Now, the deal to bring Ed to the nation’s second-largest school district — and Carvalho’s longtime association with Debra Kerr, the Florida consultant who helped sell the technology to the district — is under scrutiny as part of a sweeping FBI investigation that included early morning raids Wednesday at Carvalho’s San Pedro home and district office and a home owned by Kerr.

The LAUSD contract was inked with a Boston-based startup called AllHere. But behind the scenes, the company was collapsing and ultimately declared bankruptcy. Its founder, Joanna Smith-Griffin, was indicted on allegations that she defrauded investors. The charges were filed eight months after she and Carvalho stood side by side during the chatbot unveiling.

The raids mark a dramatic expansion into the activities and records of Carvalho and Kerr, who has filed a claim saying that the now-defunct AllHere owes her $630,000.

Neither Carvalho nor Kerr have been charged with a crime. The FBI has not released information about the nature or scope of the investigation; search warrant affidavits are sealed.

Sources with knowledge of the probe told The Times that Carvalho, not LAUSD, is a focus of the investigation. The raids are connected to the failed chatbot contract and fall under the broad category of financial issues, the sources said.

Neither Carvalho nor Kerr responded to requests for comment. Carvalho, who is typically the public face of the school system, has been silent. The Los Angeles Board of Education was scheduled to meet Thursday afternoon and the sole agenda item was “Public Employment: General Superintendent of Schools.”

Smith-Griffin was indicted in November 2024. Federal court filings in the Southern District of New York show that hearings in her case have repeatedly been pushed out after requests from both prosecutors and defense attorneys.