AI Startup 'Friend' Led by Avi Schiffmann Spends $1.8M of $2.5M Raised on Domain Name

Jul 31, 2024, 12:52 AM

An AI startup named 'Friend', led by Avi Schiffmann, has drawn significant attention after spending $1.8 million on the domain name friend.com. This expenditure represents a substantial portion of the $2.5 million the company raised in its pre-seed funding round. The decision has sparked a debate within the tech community about the prudence of allocating such a large sum to a domain name. Some argue that it is a strategic move for brand awareness and long-term value, while others criticize it as a fiscally irresponsible decision. Reports indicate that the purchase was likely structured as a payment plan rather than a lump sum. Despite the controversy, the move has garnered significant publicity for the startup, including a Black Mirror promo video. Notably, Nic Carter is among the investors in the company.