AI startups are inflating a key revenue metric to win VC attention, says this founder

# AI Startups Are Playing Fast and Loose With Revenue Numbers to Impress Investors Some AI startups are exaggerating their earnings by counting money they haven't actually received yet—specifically, they're mixing two different revenue metrics together to make their numbers look bigger than they really are. A legal AI company founder called this out publicly, saying major venture capital firms and the startups they fund are knowingly misleading investors and journalists about how much money these companies actually make. The problem matters because if investors are making funding decisions based on inflated numbers, they're likely to lose money when the real revenue doesn't materialize.