Many series C and later companies have a valuation that is lower than their preference stack, resulting in the equity of founders and employees being wiped out. When a startup raises money, the investors have priority in receiving their money back before the shares are paid out. If the company's worth is less than the money invested, the investors get paid first. This is the case for over 70-80% of series C and later companies, and even for 70% of publicly traded companies that went public in the last three years. As a result, there is a mass exodus of talent from these companies, with founders and employees opting to start their own AI companies. This has led to a rush of talent and capital in the early stages of AI startups, creating a bubble in the industry. However, a few of these startups, led by great leaders, will emerge and create significant value across multiple industries.