Part 2/9:
While this rapid growth spells opportunity, it also reveals a harsh reality: many AI startups are not what they seem. As reported in outlets like The New York Times, some companies are facing a "reality check" — a sobering moment that highlights the prevalence of "AI washing". For instance, inflection AI, which raised $1.5 billion despite having no actual product or revenue, exemplifies the speculative nature of many AI ventures. Microsoft's large investment, including $620 million for the rights to sell inflection's model via Azure Cloud, further illustrates how valuation can sometimes outpace tangible deliverables.