CEO of AI Startup Says Many AI Startups Will Fail Because They're Making a Serious Mistake

Generative AI is undeniably having a moment. OpenAI's text-to-image creator DALL-E has been dazzling the public for months, while its standout rival, a newcomer dubbed Stability AI, just raked in a cool $101 million in funding for its Stable Diffusion system. Video and music generators are popping up as well, and some experts predict that synthetic media will soon make up the vast majority of digital content. But according to Will Manidis, the founder and CEO of AI-driven healthcare startup ScienceIO, generative AI is all flash, no substance -- and while it might be attracting VC cash now, most ventures will quickly fade into startup oblivion. "There are hundreds of millions of dollars being deployed towards glorified tech demos built on top of identical datasets," the founder wrote in a Tuesday Twitter thread, referring to these generative machine systems.