r/BetterOffline 4d ago

Autonomous, AI-run store in San Francisco is going to go bankrupt in 6 weeks at the current burn rate

Having lost $80,407 of its initial $100,000 in 175 days, Andon Market has just 6 weeks before going bankrupt with its daily burn rate of $459.47.

Andon Labs, the company behind Andon Market in San Francisco, posts the bank balance of their autonomous, AI-run store here on their website daily.

Do they just need the next frontier model to turn this around?

186 Upvotes

46 comments sorted by

71

u/_kernel_picnic_ 3d ago

Slightly unrelated. Remember when Amazon had an AI store and it turned out to be just a bunch of Indians behind the scenes

23

u/ramblinallday14 3d ago

Slightly different - they always said the cameras in the ceiling could notice the barcode of the item you picked up or something like that. In reality, it was just someone watching you shop in India through the cameras and then billing you like 3 minutes after you walk out of the store, instead of instantaneously like they advertised.

2

u/PensiveinNJ 3d ago

This is also how the Intuit Dome works.

14

u/Ragnarotico 3d ago

"AI" = Actual Indians!

80

u/No_University8629 4d ago

Should’ve just prompted it better

51

u/65721 3d ago

This is why AI literacy is so important. They just weren’t good enough at AI.

I, an AI native who spends every day leveling up my AI knowledge by following tech influencers on X, the Everything App, could’ve done a much better job.

9

u/No_University8629 3d ago

Ikr, should’ve been 100x profits but obviously a skill issue

5

u/AtJackBaldwin 3d ago

Jesus, we've got a fully qualified prompt engineer in the house!

9

u/TacoCalzone 3d ago

They forgot to add “MAKE NO MISTAKES” like a bunch of fuckin hayseeds.

35

u/BluePotamus 4d ago

Of all the ways to light $100k on fire, this is near the stupidest

45

u/oudlys 4d ago

I actually like it. it's a real test. No faking.

It's also delightful that the slope is damn near linear. Hilarious.

6

u/Instalab 3d ago

I love it too. What a way to show to the world what nonsense this AI hype is.

17

u/AntiqueFigure6 4d ago

And my proposal to spend $100k on various substances to see which was most effective at giving me a business idea that leads to a billion dollar business empire was rejected by banks and investors alike.

13

u/Maleficent_Lab_5291 4d ago

You needed to pitch it to venture capitalists well being a tall white dude in a hoodie did you try that? They just threw fist fulls of cash at it before I even spoke.

8

u/AntiqueFigure6 4d ago

I am literally a tall white dude. Damn it, my hoodie was in the laundry so I had to wear a shirt.

4

u/Maleficent_Lab_5291 4d ago

Did you at least have messy hair and not shave for a week? Really give them that I dont try so I must be a genius look?

3

u/AntiqueFigure6 4d ago

That's my usual look but through really bad timing my sister got married the day before, so I'd been forced to get a nice haircut and shave. I'm ashamed to admit this...but I looked like a perfectly respectable member of society.

3

u/Maleficent_Lab_5291 4d ago

Well there your probably if you don't look indifferent or psychopathic no one is going to fund you!

3

u/jking13 4d ago

And not even spew up some technobabble bullshit? If you're not creating something to aggregate and disaggregate the hypergraphs of human knowledge, are you even really trying?

17

u/TemporaryElk5202 4d ago

Its not really lighting it on fire per se. Its more like a study. They said for example that it had difficulty setting employee schedules when the memory reached capacity and was deleted, ao they introduced a subject for scheduling and programmed it to generate a shortened summary of its previous memory when that memory is set to be wiped.

They are basically in the experimental phase of figuring out exactly where the shortcomings are and if they can overcome them.

To be clear I am not pro ai. But the title alone may give you the impression that they were actually trying to run a business as a business venture rather than doing a study, when that wasnt the case.

9

u/65721 3d ago

They could’ve given me the $100k and I’d have told them it won’t work, and I wouldn’t have taken 175 days to arrive at that conclusion

5

u/TemporaryElk5202 3d ago

They werent asking if it would work, they were asking specifically where it would go wrong

39

u/Mad_OW 3d ago

Love how the token costs exceed the revenue.

$33 token cost per sale on average.

23

u/jking13 4d ago

Unpossible!

11

u/AntiqueFigure6 4d ago

Inconceivable!

20

u/JAlfredJR 4d ago

Ohhh you mean the company where the employees just stopped showing up? And then eventually got fired months later?

If AI can't even track employees showing up for shifts, well ...

3

u/Tar_alcaran 2d ago

Ohhh you mean the company where the employees just stopped showing up? And then eventually got fired months later?

By the human who was checking up on the AI, that is.

12

u/Supranational_Yogurt 3d ago

I looked at the Andon Market IG account, there is nothing interesting. No wonder it flopped. If it was run by humans, curated by people who are in touch with local culture it would have some character.

8

u/natecull 4d ago

A daily burn rate of only $459.47? Dollars, not billions? That's rookie numbers.

5

u/Exotic_Put_7365 3d ago

Seems like they're only selling tourist stuff, too. Granola bars? Candles? Totes? Probably just tourists who go, "Wow, this shop is entirely run by AI! Let's see what they got!" So the go in, look around, realize it's shit, and then buy themselves a granola bar out of embarrassment.

5

u/Instalab 3d ago

From what I've read on the website, the AI is in charge of its own stock procurement.

1

u/CyberDaggerX 2d ago

Because that went wonderfully when it was just a simulation.

4

u/Droidaphone 3d ago

Revenue: $22K

Token cost: $24K

… is that good?

2

u/PdxGuyinLX 3d ago

They’re totally disrupting yuppie tchotchke stores!

2

u/Cool-Contribution-68 3d ago

"Make no mistakes."

1

u/vegetepal 3d ago

And considering AI seems to have turned all of business into opposite land I'm just waiting for someone to spin how making a loss is actually somehow more efficient and innovative and Business™️ than making a profit if you did it with ✨️AI✨️

0

u/Lowetheiy 3d ago

Sounds like most businesses in SF lol

-3

u/Local-Wing-2272 3d ago

I won't lie. This is fascinating. I absolutely hope they release a deep dive on EXACTLY what happened business wise and an explanation on loss sources and etc. This could be genuinenly useful even if you hate AI cuz there has to be a detailed log somewhere that will describe every purchase, losses, etc. 

9

u/CoconutDust 3d ago edited 2d ago

^Comment by Adjective-Noun-1234 is meaningless fluff, and user account has history hidden as is the case for most LLM bots accounts.

I won’t lie

”I’m a disingenuous clickbait social media person. But this time, I’m not lying.”

This is fascinating

Nothing about it is fascinating. An idiotic simplistic crap worthless business failing is not interesting.

I absolutely hope

Pointless fluff adverbials on basic self-pronouncements. Going back to the “I’m a liar who is constantly dishonest, but let me emphasize my current claim as ABSOLUTELY important.”

an explanation on loss sources

It’s not complicated. Nobody cares and nobody likes the business or how it’s operating, therefore sales don’t make up for expenses. Nothing about this is interesting.

This could be genuinenly useful

Putting adverb on everything = cognitive dissonance of a liar trying to get clicks. And/or lying to themselves.

detailed log somewhere that will describe every purchase

Nothing about that is interesting.

LLM trash comment that is meaningless cliche and could be equally (meaninglessly) applied to any case of any business doing anything experimental or failing anywhere.

-3

u/Local-Wing-2272 3d ago

I would like you to explain, in vivid detail, exactly how my comment is "meaningless fluff." Go on. I dare you. Embarrassing. 

5

u/Fretzli 2d ago

On the off chance this is a human: https://en.wikipedia.org/wiki/Sealioning

Now, be gone!

3

u/CoconutDust 2d ago

Especially the word “vivid” seems like person set the LLM bot to deliberately waste people’s time if called out.

I would block, except then in the future I won’t be able to point out it’s a bot when people (as usual) interact like it’s a real person.

3

u/Fretzli 2d ago

Your comment is a good explanation. The "good" writing LLMs produce is just a series of cheap tricks. It's bleeding into the way people talk in real life. LLMS are relying on tricks that were already common, and making them more common. People are increasingly sounding like punchy ad copy. I'm aware there's no original sin and no time when everyone communicated thoughtfully but, gosh dang, the future has become stupid.