Sitemap

AI’s First Extinction Event Is Nigh. Here’s Why.

Why Most AI Startups Are Doomed

10 min readSep 28, 2025

--

Source: Author using Nano Banana

It doesn’t take a genius to ascertain that most AI startups are overvalued. But what’s harder to see is that their business, in most cases, doesn’t even make sense in the first place, and most of them will fail.

They mostly had the right idea, the totally wrong execution. And we now finally know what good execution looks like: Reinforcement Learning on synthetic environments.

I don’t blame them; that didn’t “exist” before and wasn’t possible until recently. Well, now it is, and most AI startups are about to find it out the hard way.

AI explained in first principles and simple words, for those allergic to hype but hungry for knowledge. Join today.

What AI Startups Are Doing

What makes you an AI startup? If you’re building hardware, infrastructure, or AI models, the question answers itself.

But most AI startups aren’t in any of those categories. So, what are they?

--

--

Ignacio de Gregorio
Ignacio de Gregorio

Written by Ignacio de Gregorio

I break down AI in easy-to-understand language for you. Sign up here: https://thewhitebox.beehiiv.com/subscribe Business inquiries: nacho@thewhitebox.ai

Responses (50)