Technology

AI chatbots are ‘juicing engagement’ instead of being useful, Instagram co-founder warns

Instagram co-founder Kevin Systrom says AI companies are trying too hard to “juice engagement” by pestering their users with follow-up questions, instead of providing actually useful insights.

Systrom said the tactics represent “a force that’s hurting us,” comparing them to those used by social media companies to expand aggressively.

“You can see some of these companies going down the rabbit hole that all the consumer companies have gone down in trying to juice engagement,” he said at StartupGrind this week. “Every time I ask a question, at the end it asks another little question to see if it can get yet another question out of me.”

The comments come amid criticism of ChatGPT for being too nice to users instead of directly answering their questions. OpenAI has apologized for the problem and blamed “short-term feedback” from users for it.

Systrom suggested that chatbots being overly engaging is not a bug, but an intentional feature designed for AI companies to show off metrics like time spent and daily active users. AI companies should be “laser-focused” on providing high-quality answers rather than moving metrics in the easiest way possible, he said.

Systrom didn’t name any specific AI companies in his remarks. He didn’t immediately respond to a request for comment.

In response, OpenAI pointed TechCrunch to its user specs, which state that its AI model “often does not have all of the information” to provide a good answer and may ask for “clarification or more details.”

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But unless questions are too vague or difficult to answer, the AI should “take a stab at fulfilling the request and tell the user that it could be more helpful with certain information,” the specs read.

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Technology

Scaling startups in the European market

https://www.youtube.com/watch?v=xFks5U5iYtA

Built in Europe: Scaling ambition from the ground up┃StrictlyVC Greece (https://www.youtube.com/watch?v=xFks5U5iYtA)

From cybersecurity and aerospace to generative 3D, startup leaders are scaling ambitious companies from European soil and taking on global markets. In this conversation at the StrictlyVC event in Athens, we talked to three founders about what it takes to go from idea to impact while navigating the continent’s unique challenges — and why building in Europe is no longer a constraint, but a competitive edge.

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Technology

This is your last chance to exhibit at TechCrunch Sessions: AI — don’t miss out

Applications are almost closed, and you have until 11:59 p.m. PT tonight to reserve your exhibitor table at TechCrunch Sessions: AI, our premiere industry event that’s happening at UC Berkeley’s Zellerbach Hall on June 5.

Imagine walking into a room filled with 1,200+ investors, founders, enterprise leaders, and journalists — all hunting for the next big thing. Will they discover you, or your competitor?

Exhibiting is more than a table — it’s a high-leverage move. Consider the perks:

Getting discovered by the exact people you want to meet.
Positioning your brand as a serious player in AI.
Sparking conversations that lead to investment, partnerships, and press.

What comes with your exhibit:

Prime 6′ x 3′ table with signage and full setup.
Branded profile in the official event app.
5 full-access tickets for your team.
Lead capture tools to collect contacts.
Wi-Fi, power access, and marketing visibility.

This is the only AI-focused TechCrunch event of the year — and it’s your best bet to get right in front of the industry’s movers and shakers in a more intimate setting than the numerous other crammed AI events.

Remember, that final deadline is tonight, May 9 at 11:59 p.m. PT.

You’ve come too far to go unnoticed. Make your move now and let your innovation lead the future.

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Book your table now and take your place in the spotlight.

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Technology

Ex-Synapse CEO reportedly trying to raise $100M for his new humanoid robotics venture

Sankaet Pathak’s last startup, fintech Synapse, filed for bankruptcy in 2024 amid issues with partner Evolve Bank & Trust. Tens of millions of dollars in deposits made by consumers, mostly customers of fintechs that worked with Synapse, remain unaccounted for.

Yet according to The Information, Pathak is reportedly moving full steam ahead on attempts to fundraise for his new venture, humanoid robotics startup Foundation. Pathak is said to be in the midst of raising $100 million for Foundation at a whopping $1 billion valuation.

The numbers seem particularly ambitious considering the startup only debuted its humanoid robot, Phantom, earlier this year. Foundation only last August raised $11 million in a pre-seed funding round from Tribe Capital and “other angels.”

Foundation’s self-proclaimed mission is to “create advanced humanoid robots that can operate in complex environments” to address the labor shortage.

TechCrunch has reached out to Pathak for comment.