{"id":171013,"date":"2023-08-31T17:29:21","date_gmt":"2023-08-31T22:29:21","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2023\/08\/ai-startups-are-already-running-into-some-serious-problems"},"modified":"2023-08-31T17:29:21","modified_gmt":"2023-08-31T22:29:21","slug":"ai-startups-are-already-running-into-some-serious-problems","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2023\/08\/ai-startups-are-already-running-into-some-serious-problems","title":{"rendered":"AI Startups Are Already Running Into Some Serious Problems"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/ai-startups-are-already-running-into-some-serious-problems2.jpg\"><\/a><\/p>\n<p>Less than a year into the <a href=\"https:\/\/www.forbes.com\/sites\/danielnewman\/2023\/03\/14\/exploring-the-ins-and-outs-of-the-generative-ai-boom\/\" class=\"\">AI boom<\/a> and startups are already grappling with what may become an industry reckoning.<\/p>\n<p>Take Jasper, a buzzy AI startup that <a href=\"https:\/\/techcrunch.com\/2022\/10\/18\/ai-content-platform-jasper-raises-125m-at-a-1-7b-valuation\/\" class=\"\">raised $125 million<\/a> for a valuation of $1.5 billion last year \u2014 before <a href=\"https:\/\/www.theinformation.com\/briefings\/jasper-mutiny-ai-startups-cut-workers-as-chatbot-rivalry-grows\" class=\"\">laying off staff<\/a> with a <a href=\"https:\/\/www.jasper.ai\/blog\/july-11-important-update-from-ceo\" class=\"\">gloomy note from its CEO<\/a> this summer.<\/p>\n<p>Now, in a <a href=\"https:\/\/www.wsj.com\/tech\/ai\/ai-startup-buzz-is-facing-a-reality-check-e34babfe\" class=\"\">provocative new story<\/a>, the <em>Wall Street Journal<\/em> fleshes out where the cracks are starting to form. Basically, monetizing AI is hard, user interest is leveling off or declining, and running the hardware behind these products is often very expensive \u2014 meaning that while the tech <em>does<\/em> sometimes offer a substantial \u201cwow\u201d factor, its path to a stable business model is looking rockier than ever.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Less than a year into the AI boom and startups are already grappling with what may become an industry reckoning. Take Jasper, a buzzy AI startup that raised $125 million for a valuation of $1.5 billion last year \u2014 before laying off staff with a gloomy note from its CEO this summer. Now, in a [\u2026]<\/p>\n","protected":false},"author":556,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43,6],"tags":[],"class_list":["post-171013","post","type-post","status-publish","format-standard","hentry","category-business","category-robotics-ai"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/171013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/556"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=171013"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/171013\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=171013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=171013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=171013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}