Amazon’s one was essentially a side project for them, likely fully funded in-house using their R&D (research and development) budget.
In Nate’s case, it was their entire product. They received funding from investors purely for the AI functionality that didn’t actually exist or work. They specifically claimed that it did work, which is how they got the money. They spent all the investor money and had essentially nothing to show for it.
Yeah, investing in a company is investing in the whole company and all of its projects. Lies about your company are only fraud when the lies rise to the level of making a material difference to how a typical investor would value that company. If the lies are about a very minor percentage of revenue or profit, then it’s not gonna rise to the level of securities fraud.
I think they’re pretty different cases.
Amazon’s one was essentially a side project for them, likely fully funded in-house using their R&D (research and development) budget.
In Nate’s case, it was their entire product. They received funding from investors purely for the AI functionality that didn’t actually exist or work. They specifically claimed that it did work, which is how they got the money. They spent all the investor money and had essentially nothing to show for it.
Yeah, investing in a company is investing in the whole company and all of its projects. Lies about your company are only fraud when the lies rise to the level of making a material difference to how a typical investor would value that company. If the lies are about a very minor percentage of revenue or profit, then it’s not gonna rise to the level of securities fraud.