Datagen, an Israeli AI startup, is on the verge of closure after laying off nearly all its remaining workforce in August 2023, leaving only about 10 employees. This follows a major layoff three months prior. The company, which had 110 employees as of May 2023, was severely impacted by the rise of generative AI like ChatGPT, which made its core data simulation product less relevant. Despite raising $70 million total, including a $50 million Series B in 2022, and entering acquisition talks with Meta that ultimately failed, the company could not adapt. A small team remains to explore a new direction.
