‘Biggest scam ever in the world’: Nithin Kamath asks startup founders not to brag about AI; social media reacts
Nithin Kamath Calls AI Bragging the 'Biggest Scam Ever in the World'
Theindiapostdaily.com – Nithin Kamath, the co-founder and CEO of Zerodha, recently took to social media to address a growing trend among startup founders. He suggested that constantly boasting about artificial intelligence has become tiresome for investors. In his view, this over-hyping of AI technology represents the Biggest scam ever in the world regarding how startups present themselves to venture capitalists. Kamath argued that the phrase "we use AI" has lost its impact and now serves as a generic filler rather than a genuine differentiator.
According to the venture capitalist, the sheer volume of investment decks leading with this specific line is overwhelming. He admitted that he had nearly stopped reviewing pitch decks that opened with that exact sentence. Kamath explained that using AI is no longer a unique selling point; instead, it has become "table stakes." He compared the act of bragging about AI usage to bragging about taking a daily bath. In his opinion, it is simply a basic expectation that should not warrant special attention in a business presentation.
“The number of investment decks I get leading with ‘we use AI’ is ridiculous. It’s reached a point where it automatically makes my eyes roll, and I’ve almost stopped looking at them,” Kamath wrote on X.
He further elaborated that opening a pitch with an AI claim is a surefire way to get ignored by serious investors. This is especially true now that AI tools have democratized the ability to generate visually appealing and well-structured decks. Kamath noted that founders are using the exact same tools to say the exact same generic things, making it difficult for any single startup to stand out. He urged founders to move beyond the buzzword and focus on what their AI actually enables them to do that was previously impossible.
Social Media Reacts to the Criticism
The Zerodha co-founder’s candid post sparked extensive debate and a wide range of reactions online. Many users agreed with Kamath, comparing the current "we use AI" sentiment to older business buzzwords like "we have a website." One user pointed out that the real value lies in understanding what the AI allows the company to achieve, rather than just stating its presence. Another commenter suggested that this moment signals the beginning of the AI hype bubble bursting, as investors become more discerning.
However, not everyone was entirely convinced by the dismissive tone. Some questioned whether Kamath might be overlooking genuinely strong pitches due to his eye roll. Others drew comparisons to the dot-com bubble era, noting that every new technology goes through a cycle of hype and correction. Several replies offered sharper criticism of AI’s current market perception. One person famously called AI a "steaming pile" that merely smells appealing but lacks substance.
“AI is a steaming pile of sh*t which just smells good enough, but no one wants to taste it. AI is the biggest scam ever in the world. Trillion dollars worth of fraud,” the user wrote.
Is AI the Biggest Scam Ever in the World?
While the "steaming pile" comment was particularly harsh, it resonated with those who felt AI was being sold as a magic bullet. However, some pushed back, arguing that verification matters more than the tool's origin. They said investors should audit outcomes rather than judge the methods used. Other commenters drew comparisons to historical technology adoption patterns, suggesting that skepticism is
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