AI startup O.XYZ has been accused of various offenses including adopting aggressive tactics to reduce dissent in the company and illegally inflating its technology claims. Although the firm’s CEO Ahmad Shadid has refuted all the allegations, sources familiar with the company’s operations have strongly stated otherwise.
According to O.XYZ, it is a super AI ecosystem owned by the community that uses the power of thousands of GPUs to perform different tasks. However, sources clarified to Decrypt that these claims are false, noting that the firm cannot connect to about 100,000 AI million models. They also said it does not run faster than its competitors using the powerful hardware it claims to have.
AI startup O.XYZ embroiled in several scandals
The sources also claimed the company is involved in other activities like misrepresenting the value of its satellite program. Aside from that, there are also issues surrounding transparency and accountability with its token launch. The sources claimed that these issues may harm investors in its token.
However, Shadid hinted in a statement about the firm’s optimistic approach to promotion. He also clarified that the firm is still on track as written in its roadmap. The sources were unconvinced, as they insist that material on the platform’s website talks about what they can do instead of what they aspire to do.
It is not the first time Shadid has been trailed by allegations. In June, he controversially left his post as the CEO of IO.net, a decentralized infrastructure provider on Solana. Shadid reportedly left his role to reduce the distraction caused by his past issues and help the company grow.
He released a public statement, which has now been deleted, about his departure from IO.
Concerning allegations of inflating O.XYZ’s capabilities, Shadid rubbished the claims while noting that the company invested in United States firm Cerebras Systems hardware. He said the company also wants to build its AI data center to support 20x faster processing.
The sources also claimed these assertions are fake, noting that there are no advanced talks to purchase the hardware as Shadid claimed.
Shadid defends Starlink partnership and token launch issues
According to O.XYZ, the company is powered by Starlink, an internet technology owned by Elon Musk’s SpaceX. Shadid claimed that the technology is integrated into the company’s operations. He noted that these are plans in the company’s roadmap as it aims for maritime connectivity solutions and AI capabilities in space by 2026.
Sources have also disputed these claims, noting that the technology is used for internet connection in remote areas.
Shahid also discussed the details of the images of major organizations displayed on its website, noting that they represent the backgrounds of its contributors. However, the sources claim this is a misleading move. They also say the contributors have asked the company to remove their logos, which has remained unsolved so far.
Another controversy surrounds the company’s token launch, which took place on October 15. The token launched on smaller exchanges and boasts a daily trading volume of about $23,000. However, the sources claim that with its fully diluted supply volume at $8.1 million, investors could suffer harm anytime soon. The sources claim that holders cannot use the token to pay for any API or to claim any of the company’s assets.
Shadid claimed that initial liquidity pool activation happened during the testing phase, an activity that has been communicated to the investors. He said that they chose to continue with the launch after analyzing the market condition, pushing the release date of their token close.
Shahid also mentioned that the move was announced on several communication channels. However, he said that while initial activation was not planned, the firm deliberately maintained the token’s availability.
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