Sunday, August 31, 2025

AI Startup Once Worth $1.5 Billion Now Worthless

Builder.ai went from a value of $1.5 billion to zero in a few months, amid questions over the sales of an A.I. product. Its downfall hints at a broader downturn.

Comments

Is this like 2007 in the buildup to 2008 crash?

#1 | Posted by hamburglar at 2025-09-01 05:08 AM

Most of these Silly Con Valley companies are mostly hugely overvalued.

#2 | Posted by Wildman62 at 2025-09-01 08:30 PM

Is this like 2007 in the buildup to 2008 crash?
#1 | Posted by hamburglar

Ask AI what it thinks about that...

#3 | Posted by snoofy at 2025-09-01 08:39 PM

"Is this like 2007 in the buildup to 2008 crash?"

Not at all...it's like the buildup to the .dom crash (2008 had little to do with cutting edge technologies and everything to do with lobbyers trying to make their benefactors richer by changing regulations/laws. It's the same old theme that goes back a very, VERY long time. New technology allows new innovations. The innovations get saturated with companies. A large percent of those companies fail due to many reasons, one of which is because of saturation. Rinse and repeat.

Luckily with AI, investors have the option to be very specific. In other words, I don't have to invest in AI directly to benefit from investing in AI (sounds funny, I know). I can invest in SoundHound to bet on AI use in conversational AI, or I can invest in a Mag 7 company and benefit from whatever gains they make while inherently hedging against a full bubble burst. The .com bubble was kind of an "all in" type of bubble where oversaturation ultimately led to it popping.

#4 | Posted by humtake at 2025-09-02 11:30 AM

) - here is the missing end parens....

#5 | Posted by humtake at 2025-09-02 11:31 AM

Drudge Retort Headlines

New York City Suburbs Thrive Due to 'Mamdani Effect' (109 comments)

U.S. Boat Strikes have Killed 32 People (56 comments)

Anger as White House Begins Demolishing East Wing (50 comments)

Russia Needs 108 Years to Fully Occupy Ukraine (35 comments)

After 'No Kings' protests, where does Democratic opposition go next? (32 comments)

US Sec of War Wears Russian Colors Tie to Zelensky Meeting (32 comments)

Special Kirk Honorary Recognition Withdrawn by AF Academy (32 comments)

Trump wants $230 million from DOJ for Investigating him: NYT (28 comments)

Farmers Outraged At Trump's Argentina Beef Deal (27 comments)

Landmark Global Shipping Deal in Tatters After US Pressure (21 comments)