AI Startup Fires Advisor, Accuses Rival of Unethical Conduct
The CEO of Factory AI has terminated an advisor, alleging unethical conduct involving rival AI startup Cognition. The incident highlights escalating competition in the AI sector.
Matan Grinberg, CEO of AI startup Factory AI, has fired an employee, alleging unethical conduct with competitor Cognition. Grinberg publicly stated that the terminated advisor, Chris Degnan, was engaged in conversations with Cognition executives while privy to Factory AI's confidential board-level matters and advising leadership.
Grinberg expressed concerns about ethics in the AI era, stating on social media, "Ethics is being thrown out of the window... People are willing to do anything, including exploiting privileged information and violating ethical boundaries." He further elaborated that Degnan had assured him he wouldn't leave for Cognition, citing financial comfort and laziness.
"Competition is good. I respect and in many cases admire our competitors," Grinberg wrote. "But certain principles must remain. Violating ethics to seek advantage turns what should be positive-sum into zero-sum."
Scott Wu, CEO of Cognition, has denied Grinberg's account. The dispute underscores the intense competition and talent wars occurring within Silicon Valley's rapidly advancing artificial intelligence industry.