Venture
fromFast Company
1 day agoAI startups are inflating a key revenue metric to win VC attention, says this founder
Many AI startups are inflating revenues by misusing annual recurring revenue metrics to attract venture capital funding.
The piece cites anecdotal evidence like empty parking lots, more staff than customers during a December visit, removed novelty items, like Optimus robot popcorn service and certain menu items, the departure of celebrity chef Eric Greenspan in November 2025, slow service, high prices, and a shift in recent Google/Yelp reviews toward disappointment. The piece frames this as part of broader Tesla struggles, including sales figures and Elon Musk's polarizing image, calling it a failed branding exercise rather than a sustainable restaurant.