$30,000,000 AI Is Hiding a Scam

Summary

The video script discusses the controversial tech product, Rabbit R1, developed by Rabbit Incorporated. The company, originally named Cyber Manufacturer Co, raised millions in venture capital under the guise of an AI project but was previously involved in an NFT scheme called Gamma. The founder, Jesse, is accused of distancing himself from the failed NFT project, which promised a carbon-negative cryptocurrency and other unfulfilled innovations. The Rabbit R1 is criticized for being overhyped and under-delivering, with its functionalities like ride-hailing and food ordering not working as advertised. The script raises questions about the integrity of the team and the legitimacy of their promises, suggesting a pattern of deception from their past project to their current AI endeavor.

Takeaways

• 🐇 The Rabbit R1 is a tech product that has raised tens of millions in venture capital but has failed to deliver on its promises.
• 🔮 The founder, Jesse, is attempting to distance himself from the scam that the company was built upon, which involved overhyping the product's capabilities.
• 🎤 Jesse, the CEO of Rabbit, introduced the R1 as a multifunctional AI assistant capable of performing complex tasks, but the product has been criticized as non-functional.
• 🕵️‍♂️ The company's history reveals a name change from Cyber Manufacturer Co to Rabbit Incorporated, which is significant due to its past involvement with an NFT project called Gamma.
• 📰 The Gamma project was heavily promoted with promises of a carbon-negative cryptocurrency and a clean energy grid, none of which materialized.
• 🤔 Jesse downplays his involvement with Gamma, describing it as a 'fun little project' and distancing Rabbit from any association with crypto, despite its origins.
• 🗣️ Critics, including Ed Zitron, have accused Jesse of making extravagant promises about Gamma that were never fulfilled, raising questions about the credibility of Rabbit's claims.
• 💸 Concerns are raised about the use of funds raised from investors and customers, especially considering the transition from the Gamma project to the development of Rabbit R1.
• 🚫 The Rabbit team denies any wrongdoing and claims that all promises were delivered or are in the process of being delivered, contradicting the experiences of many.
• 🔄 The script suggests a pattern of overpromising and underdelivering, with the Rabbit R1 facing similar criticisms to the Gamma project.
• 💡 The narrative highlights the need for accountability and transparency in tech startups, especially when they pivot projects and change their business focus.

Q & A

What is the Rabbit R1 and what functionalities does it claim to have?

The Rabbit R1 is a tech product that claims to have multiple functionalities such as speaking or typing with the user, calling a ride, ordering food, and performing more complex actions like planning a trip.

What is the controversy surrounding the founder of Rabbit R1 and their past project?

The founder of Rabbit R1, Jesse, is accused of being involved in a scam related to a previous project called Gamma, which was focused on NFTs and crypto. He is now trying to distance himself from this past, claiming it was just a 'fun little project'.

What was the original name of the company that created Rabbit R1?

The original name of the company that created Rabbit R1 was Cyber Manufacturer Co.

Why did Cyber Manufacturer Co change its name to Rabbit Incorporated?

Cyber Manufacturer Co changed its name to Rabbit Incorporated about 2 months before their official announcement, possibly to distance themselves from their previous project related to NFTs and crypto.

What was the nature of the project called Gamma?

Gamma was a project at the intersection of gaming, community ownership, and web 3, which involved the sale of NFTs and had plans for a metaverse and a clean energy crypto coin.

What are the claims made by Jesse about the relationship between Rabbit and Gamma projects?

Jesse claims that Gamma was just a fun little project and that he left it once the game was open-sourced. He also states that Rabbit will never touch crypto, despite their past being built on crypto NFTs.

What is the criticism regarding the delivery of the Rabbit R1 product?

The criticism is that the Rabbit R1 product is overhyped and non-functional, with many of its promised features not working as intended.

What were some of the promises made by Jesse regarding the Gamma project that were not fulfilled?

Jesse promised a metaverse, a clean energy grid, a carbon-negative cryptocurrency, and a comic book, among other things, none of which were delivered.

What is the current stance of the Rabbit team regarding the refund of Gamma NFT holders?

The Rabbit team has stated that they will not refund investors, claiming that the project was open-sourced and that the promises were fulfilled in three stages, which is disputed by critics.

What is the connection between the brain logic interface and the Rabbit R1 project?

The brain logic interface was part of the Gamma project's promises, where users would interact with NPCs using natural language and brain logic. It is suggested that this concept might be related to the Rabbit R1 project as a continuation of the same team's vision.

What is the overall sentiment towards the Rabbit R1 and its founder based on the script?

The overall sentiment is critical and skeptical, with allegations of scam, unfulfilled promises, and a lack of accountability from the founder and the team.

Outlines

00:00

🤖 Tech Product Rabbit R1: Promises and Controversies

The video script introduces Rabbit R1, a tech product that has raised significant venture capital but has failed to deliver on its promises. The founder, Jesse, presents the product as a multifunctional AI assistant capable of performing tasks like calling a ride, ordering food, and planning trips. However, the product has been criticized for being non-functional and for the founder's attempt to distance himself from its fraudulent beginnings. The script also hints at a potential scam involving a company history under a different name, Cyber Manufacturer Co, which had raised funds for an unrelated project involving NFTs.

05:01

🕵️‍♂️ Unraveling the Rabbit R1 and Gamma Connection

This paragraph delves into the history of Rabbit Incorporated, previously known as Cyber Manufacturer Co, and its connection to a project called Gamma. The company had raised venture capital for Gamma, an NFT project focused on gaming and web 3 technologies. The founder, Jesse, downplays his involvement with Gamma, describing it as a 'fun little project.' However, contrary to Jesse's claims, the script presents evidence of Jesse's extensive involvement and promises made to investors, including the development of a 'carbon negative Bitcoin 2.0' and a metaverse, none of which materialized. The paragraph raises questions about the use of funds raised for Gamma and the legitimacy of the transition to the Rabbit R1 project.

10:01

🌐 The Overhyped Rabbit R1 and Its Unfulfilled Promises

The script criticizes the overhyping of the Rabbit R1, drawing parallels with the unfulfilled promises of the Gamma project. It details the extravagant promises made by Jesse, such as the creation of a clean energy grid, a metaverse, and even a brain logic control system. These promises, which included a storefront, comic book, TV show, and MMO RPG, were all part of a grand vision that was never realized. The script also mentions the idea of a carbon-negative cryptocurrency, which was repeatedly promised but never delivered, leading to accusations of vaporware and false advertising.

15:01

💸 Accountability and the Quest for Refunds

In this paragraph, the script discusses the lack of accountability from the Rabbit team regarding the unfulfilled promises of the Gamma project. It suggests that investors in the Gamma NFTs should be refunded, a proposition that Jesse himself had made in the past. However, the Rabbit team denies this, claiming that the project was open-sourced and that the promises were never made. The script highlights the contradictions and denials from the team, including the denial of the promised clean energy grid and the carbon-negative cryptocurrency. The paragraph ends with a sense of disappointment for the Gamma investors and a call to uncover any further hidden truths.

Keywords

💡Venture Capital

Venture capital refers to the financing that start-up companies receive from investors who provide capital in exchange for an equity stake in the companies they fund. In the video's context, it is mentioned that the tech product 'rabbit R1' has raised tens of millions in venture capital but has failed to deliver on its promises, indicating a disconnect between the financial backing and the product's performance.

💡SCAM

A scam is a fraudulent or deceptive scheme or operation designed to exploit the trust or naivety of others for personal gain. The video discusses how the founder of 'rabbit R1' is trying to distance himself from a scam that the company was built upon, suggesting unethical practices or false promises made to investors and customers.

💡AI Assistant

An AI assistant, or artificial intelligence assistant, is a software program that uses AI to perform tasks or services for users, such as answering questions, setting reminders, or performing internet searches. The video script mentions the 'rabbit R1' as an AI assistant that is supposed to help with various tasks, but it is criticized for being non-functional, implying it does not meet the expectations set for it.

💡Non-functional

To be non-functional means not working or not performing as intended. In the script, the term is used to describe the initial state of the 'rabbit R1' AI assistant, suggesting that it was not able to perform its intended tasks or functions effectively, leading to disappointment and criticism.

💡NFTs (Non-Fungible Tokens)

NFTs are unique digital assets that represent ownership of a specific item or piece of content on the blockchain. The video discusses how the company behind 'rabbit R1' previously raised funds for a different project involving NFTs called 'gamma', which was supposed to be at the intersection of gaming, community ownership, and web 3.0, but it is implied that the project did not deliver on its promises.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. The script mentions that the 'gamma' project involved the creation of a cryptocurrency called 'gamma coin', which was promised to be the first carbon-negative crypto, but it never materialized, indicating a failure to fulfill the project's goals.

💡Rebranding

Rebranding is the process of changing the existing brand identity of a company to distinguish it from competitors and appeal to customers. The video describes how the company behind 'rabbit R1' was originally registered under a different name, 'cyber manufacturer Co', and changed its name shortly before announcing their new product, suggesting an attempt to distance themselves from their previous project and start anew.

💡Vaporware

Vaporware refers to products that are announced to the public but are not yet available, often to create anticipation and generate sales. In the video, the term is used to describe the 'rabbit R1' and the 'gamma' project, implying that they were overhyped and did not deliver on the promises made during their announcements.

💡Overhyping

Overhyping is the act of excessively promoting or praising something, often beyond its actual capabilities or value. The script criticizes the 'rabbit R1' and the 'gamma' project for being overhyped, suggesting that the company made extravagant claims about their products that were not supported by reality.

💡Brain Logic Control

Brain logic control, as mentioned in the video, seems to refer to a futuristic concept where human thoughts or brain activity could directly interact with technology or digital systems. The script describes a vision where this technology would be used to control non-player characters (NPCs) in a virtual environment, indicating a highly advanced and speculative application of AI and brain-computer interfaces.

💡Gaming

Gaming refers to the activity of playing video games or participating in any form of interactive electronic entertainment. The 'gamma' project mentioned in the video was described as being at the intersection of gaming, suggesting that it involved elements of digital games as part of its ecosystem or offerings.

💡Web 3.0

Web 3.0 is a term used to describe the next generation of the internet, characterized by decentralized technologies, user empowerment, and semantic web capabilities. The 'gamma' project was said to be at the intersection of gaming, community ownership, and web 3.0, indicating an intention to leverage these advanced web technologies in their project.

💡Open Sourcing

Open sourcing refers to making the source code of a software project freely available for anyone to use, modify, and distribute. The video mentions that the founder of 'rabbit R1' open-sourced a game related to the 'gamma' project, which is presented as an attempt to show transparency and community involvement.

💡Carbon Negative

Carbon negative refers to the concept of not only being carbon neutral, which means having a net-zero carbon footprint, but actually removing more carbon from the atmosphere than is emitted. The 'gamma' project promised a 'carbon-negative' cryptocurrency, which was a key selling point that was never realized.

💡Metaverse

The metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual reality. The video describes a promised metaverse by the 'gamma' project, which turned out to be an Unreal Engine project file rather than an actual functioning metaverse, highlighting the discrepancy between promises and delivery.

Highlights

The Rabbit R1 is a tech product that has raised tens of millions in Venture Capital but has delivered on almost none of its promises.

The founder of Rabbit R1 is now trying to distance himself from a scam that the company was built upon.

Rabbit R1 promises to perform various tasks like speaking, typing, calling a ride, ordering food, and executing complex actions.

Rabbit R1 was supposed to ship by Easter 2024, but it's unclear if this has happened given the product's track record.

Tech YouTube reviews indicate that Rabbit R1's AI assistant is borderline nonfunctional.

The company behind Rabbit R1, originally named Cyber Manufacturer Co, had a history in crypto and NFTs before pivoting to AI.

Cyber Manufacturer Co raised venture capital for an NFT project called Gamma, unrelated to AI.

Gamma was marketed with buzzwords like gaming, community ownership, and web 3, but had no real connection to AI.

Rabbit's founder, Jesse, denies any significant involvement with Gamma, describing it as a 'fun little project'.

Investigations by Emily Shepard and Ed Zitron reveal a different story about Gamma, suggesting it was more than just a side project.

Jesse had promised a lot for the Gamma project, including a carbon-negative Bitcoin 2.0, which never materialized.

Questions arise about the use of funds raised from customers when Cyber Manufacturer Co changed to Rabbit.

Rabbit's team denies that the company ever promised a carbon-negative coin, contradicting Jesse's previous statements.

The Rabbit team claims that all promises were delivered or are in the process of being delivered, which is disputed by critics.

Critics argue that Rabbit is another overhyped product with a history of abandoning investors, similar to the Gamma NFTs.

Jesse suggested refunds for Gamma NFT holders in the past, but Rabbit's team now states that refunds will not be given.

Rabbit's team attempts to distance the company from Gamma, despite evidence suggesting a direct connection.

The Rabbit team's denial and lack of accountability raise concerns about the integrity of the company and its products.

Transcripts

the rabbit R1 is a tech product that has

raised tens of millions inv Venture

Capital promised the world and delivered

on almost none of it worse though it's

built on a scam that the founder is now

trying to distance himself from but hey

where are I manners I'm trying to be

more positive in

2024 so let's let this company introduce

themselves at least before we say

anything negative about them hi everyone

my name is Jesse and I'm the founder and

CEO of rabbit this is the rabbit R1 I

can speak or type with R1 I can also use

R1 to call a ride I can also use R1 to

order food I can also make R1 to a set

of more complex actions for example if I

want to plan a trip to London I can just

describe what I wish in full to R1 you

can order the R1 now at

rabbit. and we are shipping Easter 2024

well there you go that's not so bad you

got yourself a standard Tech guy in a

black shirt promising the world Apple

keynote backround what could go wrong oh

and I guess it's past Easter 2024 so the

product should have shipped so before we

talk about the scam angle let's briefly

check in with tech YouTube for how this

AI assistant is assistan thing the thing

that you get at the beginning is like

borderline nonfunctional look in Uber to

LT Labs the ride share status is

currently unavailable get me a ride

apologies the Uber ride request couldn't

be processed what is

this you are holding a taco oh that's

not good I could give them a few lessons

on positivity turns out basically

everyone in the tech sector tagged team

this product for being non-functional or

playing wrong about things that rabbit

said the R1 could handle things just

weren't working what if I told you that

wasn't the the biggest scam that this

company is built on something much worse

and now that I've been so cheery and

positive let's go down the rabbit hole

and see what's under the hood yes it's a

bunch of rabbit jokes so the first thing

we need to do is go to their web page

the R1 is created by something called

rabbit Incorporated but this company has

a strange history it was originally

registered under a different name cyber

manufacturer Co in fact they changed

their name 2 months before their

official announcement and it turns out

that name change is pretty significant

because cyber manufacture Co wasn't just

like a shell company or the same company

under a different name they had

separately raised venture capital for a

completely different project not AI it

was for nfts now before you laugh

remember this is 2021 when people took

nfts very seriously according to a press

release the project was called gamma and

it was at the intersection of Gaming

Community ownership and web 3 buzzwords

what does that have to do with AI well

not really much conversely rabbit today

also sort of wants nothing to do with

crypto their founder Jesse announces for

rabbit let me be clear quote we will

never touch crypto never okay well

that's pretty strong but given their

whole past is built on crypto nfts it's

a little strange now when gamma is

brought up Jesse doesn't really deny

that he ran the project he sort of makes

it sound like it was no big deal just

kind of a thing of the past quote gamma

was a fun little project I was involved

with during early Co time my main work

is to build a Unreal Engine 5 space

station themed game that I later open

sourced yes gamma released nfts and I

bought a bunch myself just for fun never

trade Never released any token or crypto

coins and I left that project once the

game was open

sourced well there you go haters case

closed it was a fun little multi-million

dollar project he did he just built it

on Unreal Engine he may have sold a few

nfts but he bought a few nfts so you

know it's not a scam please don't look

into this please please do not look into

this is not a scam oh some people may

have looked into it

first Emily Shepard and then the writer

and podcaster Ed zitron jumped in The

Fray with a great article now I spoke to

Ed and he told me a very different story

than Jesse about this gamma project it's

so weird and it's the same company and

in 2021 they raised this 6 million and

then Jesse Lou across several hours of

Clubhouse I subjected myself to promised

the world and more now I have to say

promise the world and more is slightly

inconsistent with fun little covid

project so I decided I needed to listen

to these recordings of Jesse talking

about Gamma myself back in the day and

find out who was really telling the

truth Jesse or Jesse I don't want to

make GMA or none of us want to make GMA

as a hyp and dump program this is a

legit uh team with millions of dollars

of fundings behind basically we're

dumping millions of monies into it uh

just to make sure that uh it will be a

next level

experiences okay I have to admit it

definitely sounds like Ed is right this

is sold as whatever the opposite of a

quick nft hype and dump project is and

this is where things get much weirder so

nft is only just the beginning the very

beginning of this we probably think that

the N part will only take you know no

more than 20% of the entire weight of

this entire Bama project so after nft we

have this huge uh groundbreaking ideas

about Gamma verse then after that we

have this uh again huge groundbreaking

ideas about the clean energy versus

gamma coin uh and that you know uh the

the chances that gamma coin become the

first not only uh carbon neutral but

actually carbon negative crypto 2.0 or

Bitcoin 2.0 I think that's complete the

entire gamma story hopefully now you're

starting to see why I think it's strange

for Jesse to claim that gamma was a fun

little project where he never released

these tokens or crypto coins when that's

sort of what he promised he told people

he was going to release a carbon

negative Bitcoin 2.0 and look I know it

sounds stupid now but again 2021 was a

different time and remember Jesse had

millions in backing it's not hard to see

how people took him seriously he said it

didn't matter how the nfts did he was

going to execute cute but where are

those Millions you know the money raised

from customers when the company changed

to Rabbit where did it go did it go to

develop rabbit a completely different

project I don't know I'd love to sit

down with Jesse and find out what I do

know though is that so many of the

promises of gamma didn't happen and this

is relevant to the R1 not just because

this project is built on the skeleton of

that scam project it's also because the

R1 was overhyped in a similar way as a

Do-it all device but this same company

isn't some history lless company they

have a history of abandoning investors

like they did with gamma nfts I mean

Jesse even told people who were worried

about the nfts don't pay attention to

that you know it's all going to work out

you just got to be a true supporter I

would suggest for our true supporters uh

do not pay too much detail about the

current nft mechanisms because that

doesn't matter you know like I I can

safely say that even if the entire nft

project completely failed which I don't

think that's the case we're going to

still push the GMA verse and we can

still push the the uh the clean energy

and Gamma coin happen using our FS I

cannot emphasize enough that was a lie

that never happened the clean energy

gamma coin never got published or built

or launched even though Jesse said they

were going to do it they had the money

by the way we all know it's vaporware

but I think it's important to really

hear him sell it because this is the

same guy who wants you to take him

seriously when he sells you the future

of AI take a listen to the whole Vision

really laid out GMA coin which is

basically Bitcoin 2.0 that is 100%

generated by Clean Energy and we did the

mass we did the calculations to where if

you own over 1,800 M of clean energy

generation that means you will have

extra generated electricity that you can

donate back to City

grade so the general concept is let's

say if you own a GMA

nft that means you own the equal portion

in valuation of your nfts at that moment

of that clean energy grid that we

started building in the real world that

means you own that power that portion of

the clean energy solar panels that

generates that power and that means you

own that power and that also means that

you own that portion of that power and

that power will be used to generate

gamma coins that means you can

earn your gamma coins out of this entire

uh CLE energy cycle

all right let's try to suspend our

disbelief for a second here and figure

this out basically he's saying buying

nfts somehow would build a clean energy

grid which you would sort of co-own

which would make clean tokens sort of

the thing and and look I know that

sounds a little insane but the funny

thing is it's sort of the most sensible

part of this project because uh as I

learned that wasn't even close to the

end of it they were saying there was

going to be a storefront on I think

Fairfax Avenue across from Supreme in La

they were going to do a comic book they

claimed uh there's a Discord comic book

yeah they said a comic book a TV show an

MMO RPG and at one point yes and then

Jesse Lou at one point said that the

future of this thing you would control

using your brain logic it is insane am I

the only one who doesn't know what brain

logic control is look when I first heard

this I thought this cannot be right this

project is already crypto plus nfts plus

clean energy plus comic books surely

they aren't going to wrap in AI as well

right the ultimate goal is that each NPC

will be powered by uh AI algorithms and

then you will be interact directly with

them using your natural language and

your brain logic I think that will be

the ultimate goal and when I say

ultimate goal I don't think that's like

a 10 years plan I think you know in next

couple of years we might just have a

very good chance to achieve it oh oh he

did he promised it in two years okay

well uh why not toss in AI to the

buzzword salad in fact I guess it maybe

relates it more to Rabbit maybe we do

have the connection right the brain

logic interface is the

connection I I mean why not just make it

the Matrix while you're at it I mean it

surely is a matrix to my to my extent

and to the original concept of of the

Matrix that you know you will be rebor

reborned with your alter identity in

this metaverse and whatever you do in

the real world matches the exact

consequences in the digital world okay

did this man just do the if you die in

the game you die in real life

unironically while selling

nfts the answer is yes and my only

follow-up question is if you get scammed

in the metaverse do you get scammed in

real life in this world too look I'm not

here to stump for the big wig Venture

capitalists who lost their faces on this

at the end of the day these are both

consumer facing businesses they got real

people to invest real money into both

the $200 rabbit R1 and into this gamma

nft project both are overhyped one just

already didn't deliver what they

promised while the other is working on

fixing it so what can be done here well

for one the minimum is that the gamma

nft holders should be refunded the money

they spent I mean this isn't even my

crazy wacky suggestion Jesse suggested

it himself in those clubhous calls and I

better pay my money to collect your nft

back if you think this is just an nft

hype and dump project I have to say that

so the communities will have my words

anyone that is not envisioning the Gama

to the stage two or three just want to

make a a coup of e out of stage one

reach out to me I will buy your nfts

okay I will buy your gamas and get out

all right all right we'll take you up on

that yes I got a haircut so I reached

out again to Jesse about these refunds

but he didn't respond again the rabbit

team did though they told me Jesse would

not refund investors the quote was out

of context the project was never

abandoned it was actually op sourced

what does that mean well rabbit claims

the gamma team delivered everything they

promised in three stages the one problem

is the three stages they gave me aren't

the three stages they promised the

metaverse by the way they said they

created to is not a metaverse it's an

Unreal Engine project file that I

downloaded to play it's based on a

starter game called Lyra you can see the

starter assets here and the things gamma

did do made the game so buggy that it

crashed every minute but it gets worse

the rabbit team denied gamma ever

promised the carbon negative coin which

they repeatedly promised they said the

coin you referred to never materialized

nor was it ever promised or delivered

now obviously I thought I had a stroke

here I was listening to Jesse promis it

but also he even put it in a video

saying explaining gamma with our road

map ultimately our efforts will lead to

the GMA token the first ever carbon

negative cryptocurrency powered by our

son together we will create a

sustainable future for all life on the

planet we call home join the Discord

today and meet your fellow crew

members G I don't know how they could

have been more clear I think it's

amazing to have them say now we never

promised that only to find a road map

video with you promising in big letters

carbon negative cryptocurrency it's just

gaslighting at this point to pretend

otherwise what is funny is that rabbit

also mentions clean energy initiatives

they say they did like reducing gas fees

but again that's not what they promised

they promised a clean energy grid Jesse

also promised it on Discord his post was

in Chinese but he's clearly talking

about Open Sea transactions being used

to buy land to build the clean energy

grid which is going to help mine game of

coins which is exactly what he said on

clubhouse I mean these people are

contradicting themselves in multiple

languages so I'll let you decide at the

end of the day if the rabbit team is

being honest here towards the end they

even tried to tell me that gamma in our

opinion and as stated in the fact sheet

has no connection with rabbit but the

fact sheet they're talking about they

sent me in a document called gamma

project fact sheet you can't just

declare your own facts when it's the

same company who made both things the

rabbit and the gamma project how can you

say there's no connection but after

realizing no accountability would be

taken and no refunds would be given by

this project I began to feel bad for

gamma investors it made me wonder what

else is this team hiding

well I decided to find out

[Music]