[LINK] InfoAge: ' ... Microsoft-backed unicorn implodes'

[Roger Clarke]

[ The story of a fraudulent claims by a technology CEO, eventually 
culminating in exposure, and then bankruptcy, isn't very important.

[ But the closing lines of the article are more interesting. ]

The company whose ‘AI’ was actually 700 humans in India
Disaster as Microsoft-backed unicorn implodes.
Information Age
David Braue
Jun 05 2025 01:15 PM
https://ia.acs.org.au/article/2025/the-company-whose--ai--was-actually-700-humans-in-india.html

...

Reports suggest that around 90 per cent of AI startups fail within a 
year, whether due to a lack of market demand, financial instability, 
operational challenges, or AI’s technological complexity – and the 
demise of the likes of Artifact, Shyp, Tally, Eaze, and Ghost Autonomy 
are prima facie evidence.

Even major firms have struggled to get AI right, with McDonalds, Air 
Canada, Sports Illustrated, iTutor Group, and Zillow among those that 
have backtracked after wrongfooted AI implementations.

Gaps between AI hype and AI reality are regularly proving disastrous – 
as when the surprise debut of Chinese generative AI venture DeepSeek 
sent share markets tumbling in January, or when Microsoft and AWS 
announced in May that they would pause their expansion of AI data centres.

...


-- 
Roger Clarke                            mailto:Roger.Clarke at xamax.com.au
T: +61 2 6288 6916   http://www.xamax.com.au  http://www.rogerclarke.com

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Visiting Professorial Fellow                          UNSW Law & Justice
Visiting Professor in Computer Science    Australian National University