The First Big AI Failure Just Took Place. About Time.

When Huge Capital and No Real Product Converge

It finally happened. We have our first real AI company debacle.

Inflection, a company invested in by the likes of Bill Gates, Eric Schmidt, and Microsoft, among others, has become the first Generative AI relevant company to get flushed down the toilet.

Their most important product was Pi, a ChatGPT rival that focused on being a friendly and ever-supportive AI companion.

Now, they are being dismantled by Microsoft and it’s becoming an AI studio, a terrible ‘end’ for a company that had raised an astonishing $1.3 billion last year alone.

But this is also a stark reminder that the AI space is at complete risk of consolidation around the main incumbents, to the point that most AI developments one day could be traced down to a single set of two or three players.

Therefore, with news like this, there’s much more at stake than meets the eye.

This insight and others have mostly been previously shared in my weekly newsletter, TheTechOasis.

If you want to be up-to-date with the frenetic world of AI while also feeling inspired to take action or, at the very least, to be well-prepared for the future ahead of us…