'There's no accountability;' AI startups keep claiming huge revenue. VCs say the math is getting 'murky.'

Business Insider | 08-09-2026 11:29am |

Venture capitalists are increasingly skeptical of annual recurring revenue (ARR) figures reported by AI startups, as the metric may not reflect true recurring revenue. Greg Isenberg, CEO of Late Checkout, publicly criticized the prevalence of AI companies misstating their ARR. One VC noted that there is currently no accountability for such claims.

Stay Updated with the Latest News!

Don't miss out on breaking stories and in-depth articles.