Why eval startups fail (2025)

This analysis explores why independent startups focused on AI model evaluation struggle to succeed. The author argues that talent is drawn to more lucrative areas of the AI stack and that eval startups face insurmountable optimization and customer acquisition challenges.
Why it matters
It provides insight into the economic and structural limitations of the current AI startup ecosystem.
Why are there so few independent eval startups?
The piece is an industry analysis based on market observations rather than ideological bias.
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