File: /n/kris/news/soapbox-demo-ai-funding
Size: 89 words
Access: (0644/-rw-r--r--) Uid: (1000/kris) Gid: (100/users)
Modify: 2026-05-11
Status: growing confidence: likely importance: 8
Tags: ai venture-capital economics
Venture capital is pouring into AI startups that can't explain their unit economics. We've seen this movie before.
Every week another AI startup raises a Series B on vibes and a demo that crashes if you sneeze near it. The valuations are untethered from revenue in a way that would make 1999 blush. I'm not saying the technology isn't real — it is — but the gap between what these models can do and what these companies are promising is a canyon you could lose a pension fund in.
The tell is always the same: when the press release says "enterprise-ready" but the API docs say "beta."