Brian Halligan, co-founder and former CEO of HubSpot and a partner at Sequoia Capital, has voiced skepticism about the long-term viability of many generative AI startups, arguing that while the sector is full of excitement and hype, it often lacks substance. Speaking from his experience guiding early-stage companies through rapid growth, Halligan says there’s more sizzle than steak when it comes to the current wave of AI-driven ventures. Halligan, who has helped build and scale HubSpot into a public software company, now advises a range of generative AI startups, including Lovable, a coding platform; ElevenLabs, a speech technology company; Sierra AI, a customer support automation firm; and Harvey AI, a legal services tool. His role at Sequoia involves helping these companies navigate the complex challenges of leadership, team building, and sustainable growth—issues that often get overshadowed by the allure of cutting-edge technology. He points out that many of today’s generative AI startups are built on the promise of innovation, but few have clear paths to profitability or defensible business models. “The technology is impressive, and the potential is real,” Halligan said, “but the real test is whether these companies can build lasting organizations, not just cool demos.” He warns that the current environment, fueled by massive venture capital inflows and high valuations, may be creating a bubble. “We’re seeing a lot of companies that are great at showing off what they can do, but not at solving real, repeatable problems for customers in a way that sustains a business,” he said. Halligan stresses the importance of focusing on core operational excellence—hiring the right people, building strong cultures, and creating predictable revenue models—long before chasing market share or scale. “The best AI companies won’t be the ones with the most advanced models, but the ones that can execute with discipline and focus,” he said. As the generative AI market matures, Halligan believes the winners will be those that treat AI not as a magic bullet, but as a tool to solve real business problems. His advice to founders: “Don’t get lost in the noise. Build a company that can last, not just a product that can impress.”