AI Industry Bubble and the Impact of API Fakes

The AI startup scene is vibrant, but not always for positive reasons. Many 'AI founders' claim to have built their own artificial intelligence, yet in reality, it often consists of an OpenAI API key, a few prompts, and a Tilda-built frontend. These projects secure initial funding and promise revolutionary solutions, but quietly disappear within months, eroding trust. Genuine AI innovators are left to justify their existence amidst these scams.

According to Dealroom and CB Insights, 80% of AI projects launched in 2024 lack proprietary datasets or models, with over 60% built on GPT's API, repackaged as 'breakthrough technology.' This creates an inflation of trust. True AI companies cannot survive on prompts alone.

While engineers spend months curating datasets and training models, others raise funds for an 'AI health assistant' based on GPT-4, misleading investors with growth metrics but lacking real technology.

The market will self-correct within a year. Venture funds will demand code audits, data provenance, and real model architectures. The API-fake bubble will burst, and only those with genuine intelligence will endure. The AI revolution isn't canceled; it's been hijacked by those mistaking an API call for invention.