Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley DreamsRead more

Nate CEO Albert Saniger. Art by Shane Burke.

Coatue-Backed ‘AI’ Shopping Startup Nate Has Slashed Most Staff and Disabled Key Features of its App

By  |  Jan. 27, 2023 1:46 PM PST
Photo: Nate CEO Albert Saniger. Art by Shane Burke.

Nate, the shopping app that drew attention last year for overstating its use of artificial intelligence technology to power its transactions, has stopped processing payments on its app and has cut most of its workforce, according to three people directly familiar with the matter.

The moves suggest Nate is poised to become the latest casualty among e-commerce startups. The New York-based startup, which was backed by Coatue Management and Forerunner Ventures, offered people the ability to make shopping lists on its app. Nate charged shoppers a fee for filling out payment information on retailers’ web sites to make purchases of products easier, a process it said was done with AI.

But as The Information previously reported, Nate actually relied on workers overseas to manually enter the data for many of the transactions. Nate did not disclose use of these workers to some of its potential investors when pitching the app.

Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Former Apple design chief Jony Ive and OpenAI CEO Sam Altman. Photos by Getty.
Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project
Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been discussing building a new AI hardware device, according to two people familiar with the conversations.
From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.
Exclusive Finance
Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams
The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that advised Silicon Valley Bank’s owner and Credit Suisse through recent turmoil, got two doses of bad news last week.
From left, a Google TPU, Broadcom CEO Hock Tan and Google Cloud chief Thomas Kurian. Photos via Getty, Google and YouTube.
Exclusive google semiconductors
To Reduce AI Costs, Google Wants to Ditch Broadcom as Its TPU Server Chip Supplier
Google executives have extensively discussed dropping Broadcom as a supplier of artificial intelligence chips as early as 2027, according to a person with direct knowledge of the effort.
Art by Clark Miller
Exclusive startups entertainment
MasterClass Takes a Crash Course in Frugality
MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co. CEO Bob Iger.
OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella. Photos via Getty
Exclusive microsoft ai
How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar
Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI , the startup Microsoft funded in exchange for the right to use its cutting-edge technology.
Art by Clark Miller
The Big Read policy
Europe Has Figured Out How to Tame Big Tech. Can the U.S. Learn Its Tricks?
Late last month in Belgium, Sen. Elizabeth Warren (D-Mass.) had a pressing question for Paul Tang, a Dutch politician and member of the European Parliament.