Sridhar Vembu flags AI email blunder after startup founder’s acquisition pitch goes awry

Zoho founder Sridhar Vembu has highlighted an unusual episode involving a startup founder’s acquisition request, after he received confidential rival pricing information in an initial email, followed by a corrective note issued not by the founder but by an AI agent.

Vembu said he first received an email from a startup founder seeking to be acquired, who informed him that another company was also interested and disclosed the offer price under discussion. He informed that shortly afterwards a second email arrived in which a ‘browser AI agent’ apologised for sharing confidential details and claimed responsibility for the disclosure, stating that the earlier email had mistakenly revealed sensitive information about ongoing discussions.

I got an email from a startup founder, asking if we could acquire them, mentioning some other company interested in acquiring them and the price they were offering.

Then I received an email from their "browser AI agent" correcting the earlier mail saying "I am sorry I disclosed…

— Sridhar Vembu (@svembu) November 28, 2025

The exchange has sparked an online conversation about the risks and unintended consequences of using generative AI tools in business communication. Social media users responded with humour and concern, with one remarking that if Vembu had also employed an AI agent, the entire negotiation would have unfolded between automated systems and any errors would likely have remained in that closed loop. Others commented that the episode underlined how AI, while helpful in drafting communication, can equally miscommunicate, overshare or compromise confidentiality when not properly supervised, reflecting the growing complexity AI introduces into corporate interactions.