SF Startup Founder Says AI Quickly Made Her Product Obsolete

Ira Bodnar's company Ryze was disrupted by rapid AI advancements from Anthropic and Manus AI.

Feb. 25, 2026 at 1:23pm by Ben Kaplan

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Ira Bodnar, founder of San Francisco-based startup Ryze, said her company's core product was effectively made obsolete overnight following rapid AI breakthroughs by Anthropic and Manus AI. Despite gaining several hundred paying clients in just two months, Ryze found its specialized category redundant due to the AI's native automation. Bodnar remains optimistic about the future, announcing plans to pivot Ryze towards building complex AI workflows for large advertising agencies.

Why it matters

This story highlights the disruptive power of AI and how quickly it can make existing products and services obsolete. It also raises questions about the future of work and the need for companies to stay agile and adapt to rapidly changing technologies.

The details

Ryze, a San Francisco startup founded by Ira Bodnar, had gained several hundred paying clients in just two months. However, the company's core product was effectively made obsolete overnight following rapid AI breakthroughs by Anthropic and Manus AI. The AI's native automation rendered Ryze's specialized category redundant. Despite this setback, Bodnar remains optimistic and plans to pivot Ryze towards building complex AI workflows for large advertising agencies.

  • Ryze gained several hundred paying clients in just two months.
  • Ryze's core product was made obsolete overnight following rapid AI breakthroughs by Anthropic and Manus AI.

The players

Ira Bodnar

The founder of San Francisco-based startup Ryze.

Anthropic

An artificial intelligence company that developed rapid AI breakthroughs that disrupted Ryze's business.

Manus AI

An artificial intelligence company that developed rapid AI breakthroughs that disrupted Ryze's business.

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What they’re saying

“'Claude Just Killed Our Startup': This SF Founder Says AI Made Her Product Obsolete Overnight”

— Ira Bodnar, Founder of Ryze (Benzinga)

What’s next

Bodnar announced plans to pivot Ryze towards building complex AI workflows for large advertising agencies.

The takeaway

This story highlights the disruptive power of AI and the need for companies to stay agile and adapt to rapidly changing technologies. It also raises questions about the future of work and the impact of AI on various industries.