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And with that we have our first dead AI startup

Sorry, when you say it was gutted, more context please? Asking honestly cause “gutted for $2.5B” sounds like PE bought the company for $2.5B, then sold off a ton of assets before the bankruptcy.

Google entered into a 2.7B agreement with them to get their old guy + some others under Google again. That gave them an expected value of 2.5B which along with the Google capital let them pay out the early investors at a value rate of 2.5B. Then they had to actually do something and bled money.

How much money was actually poured into the company?

I think the thing that investors, techbros, and sycophants either want you to ignore or are themselves blissfully unaware of, is that GenAI, by its design, is not capable of reaching General Artificial Intelligence.

This thing Altman says will skyrocket us into the bright future we've dreamed of, literally cannot happen. All these models, they train on existing information, stolen from the people who made it, who derived it honestly.

It can tell you what 2+2 is, because someone already proved it. It can write your app's code because every chunk it harvests and stitches together was written by someone who knew what they were doing.

And that's a pretty popular one too. We finally starting the downward spiral?

No: this is the period of consolidation. The endgame is many going bust or bought out, with 2-3 players remaining. They can then charge what they like, once the fools out there have become dependent on AI for even the simplest of tasks

Buddy of mine is a programmer, oversees a bunch of other coders. They use AI (buddy is generally a fan, TBH). Told me about how one of his people used AI to delete a file, which probably took more effort than, you know, just deleting the file. (To say nothing about resources, etc.)