Could Cruise Be the Theranos of AI?

Nov 4, 2023 ·

Cruise, a self-driving car startup, has been making headlines recently for their bold claims of achieving a fully autonomous vehicle that is ready for commercial production in 2021. However, some experts have raised concerns about the accuracy and feasibility of Cruise's technology. This article compares Cruise to Theranos, another startup that made promises of revolutionary medical technology before being exposed as an elaborate fraud.

The author argues that Cruise may be the "Theranos of AI," referring to the infamous startup that promised to revolutionize laboratory testing with a single drop of blood, only to be exposed as one of the biggest frauds in the history of Silicon Valley. He notes that while Cruise has made impressive progress in developing their self-driving car technology, they have yet to demonstrate that it can be safely deployed on public roads or that it is economically feasible for mass adoption.

The article outlines several similarities between Cruise and Theranos. First, both companies were founded by charismatic leaders who had a flair for attracting attention and investment from venture capitalists. Similarly, both companies made bold claims of revolutionary technology that was not quite ready for prime time. Finally, neither company had meaningful independent oversight when they were making their grand promises.

The article concludes by cautioning against allowing hype and optimism to obscure the potential risks associated with investing in unproven technologies. Ultimately, it suggests that investors should look beyond the excitement and focus on the details and evidence before making large investments in any company based on promises of revolutionary technology.