AI Startups Are Facing a Reckoning

A reckoning may be coming for once-hot artificial intelligence startups. Among the most vulnerable: consumer apps (think Character.AI) and “thin wrapper” startups like CopyAI that merely provide a nice user interface on top of a third-party model from model developers like OpenAI. 

We got a sense of the slowdown last week, when Natasha and I reported that Jasper, an early generative AI winner whose $125 million Series A round last October kicked off the AI funding frenzy, has cut its …

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