Founders are quitting AI startups in the US, but why?

50% layoff at a Bangalore based health tech startup. Founder had no shame or guilt. Has raised funding recently but chose to fire people again. This is the third layoff in the last 1.5 years. Terrible management, declined variable pay. Severance is to paid in the next 4 months. Just trying to pivot the company into ‘AI’ without any plan whatsoever.

Dunzo Taskmo Frontrow

What is the reason for this? Lack of pay, Lack of cutting edge research?

- Microsoft and Apple have decided not to take board roles at OpenAI, highlighting growing regulatory concerns over Big Tech's influence on AI. - Microsoft, which invested $13 billion in OpenAI, will withdraw from the board, citing confidence in the company's direction and deeming their observer role unnecessary. - European and US regulators have expressed concerns about Microsoft's influence over OpenAI, prompting investigations into potential dominance and antitrust issues. - The UK is also scrutinizing Amazon's $4 billion collaboration with AI company Anthropic, while the US probes Nvidia's dominance in AI chips. - OpenAI will continue to engage with stakeholders through regular meetings to ensure collaboration on safety and security, following its transition from a nonprofit to a for-profit entity.

I am an entry level analyst in at Deloitte. Just wondering if these are some signs of a practice not doing great + potential layoffs in a few months/year. 1. Utilization: ~45% last quarter. They originally said that it was a slow start to the year with low CapEx by companies but we still don't look good this quarter now. There was a small call last night between a few people in this project level meeting and the senior management straight up said "Their is no demand and people are still on bench. We need to reallocate some headcount" 2. Headcount growth - Last 1.5 years ago, every month we had 10-15 people join our practice, This has literally gone down to 1-2 hires to replace people who have left. 3. Resignations: 6-7 people are leaving every month in my practice, which is quite harsh. Someone told me that everyone they used to work with when they joined have already left. 4. AI-pocalypse - I feel most companies think that they can now do AI inhouse and niche projects but higher costs because of MS/PhD folks working on it is something they dont want to go for anymore. If a layoff is incoming, what would be the best ways to prep? I see two options: 1. Getting on a boring sad project but long term. 2. Do nothing: I am literally the cheapest resource in the company so they would ideally layoff senior folks first, right??