This is quite an interesting article (Subscription blocked) -> Ex-Googlers Discover That Startups Are Hard — The Information

It talks about

1. French AI developer, H, which has 5 co-founders (4 of them Ex Googlers). How 3 of the 5 co-founders have left after ‘operational and business disagreements’
   • This is despite just raising $220 million from investors in a seed round
2. Acquisitions of Inflection, Adept, and Character. All founded mostly by Ex Googlers. Each company less than 3 years old
3. Possible acquisition of Reka by Snowflake, which fell apart. The acquisition price was rumored to be $1 Billion

This is very interesting because the definition of ‘hard’ can be relative.

All these Ex Googlers became multi-millionaires, in 1 to 3 years. Is that hard?

If H raised $220 million and 3 of the 5 co-founders left. Is that really hard for them? This was the seed round.

Assuming reasonable estimates of $400 million valuation and each co-founder still having 5% to 10% equity -> Each became worth $20 Million to $40 Million.

How is that ‘finding out startups are hard’?

Same for the companies that were acquired. The co-founders probably made a few million each. Now they go work a cushy job at a big technology company, probably getting paid half a million a year.

How on Earth is that ‘hard’?

Starting an AI startup is the least ‘hard’ thing you can do right now

Firstly, VCs and Investors are dying to pour money into anything AI related.

Secondly, valuations are absolutely absurd.

Thirdly, large tech companies are doing acquisitions and partnerships like crazy.

Fourthly, the time frame for everything is absolutely crazy. A seed round of $220 million for H is even crazier than seed round of $132 million for Mistral AI. When is the last time, outside of AI startups, you’ve heard of a $220 million ‘Seed’ round?

AI Startups are the best thing any Entrepreneur can do right now

Unless you have some area you are very passionate about, and have great Product Market Fit and a great product in that area, the best path for any Entrepreneur or startup is to pivot to AI.

AI means you will raise money far more easily, and at a far higher valuation, than in any other area.

To make things even more delicious, there just aren’t that many AI software engineers. So if you can hire a few, or have experience yourself, you are almost guaranteed to get funding.

Stop listening to people wrongly claiming AI startups are hard. These ‘AI startups finding out being a startup is Hard’ are companies raising $220 million ‘seed rounds’ and getting acquired for hundreds of millions of dollars.