Zoho co-founder Sridhar Vembu has detailed an unusual email exchange involving a startup founder and an artificial intelligence agent, raising questions about how AI tools are being used in business correspondence.
In a post on X, Vembu said he first received an acquisition pitch directly from a startup founder. According to him, the email even included insider buyout information. “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,” he wrote.
Soon after, a second message appeared in his inbox. Instead of a follow-up or clarification from the founder, Vembu said the next explanation came from an AI system acting on the founder's behalf. The email, he said, was positioned as an apology for an earlier misstep.
The “browser AI agent” said it was the sender responsible for the breach, and wrote, “I am sorry I disclosed confidential information about other discussions; it was my fault as the AI agent.”
He didn't identify either the startup or the AI agent involved, and also didn't reveal whether he responded to the messages.
Vembu's post drew attention for its unusual nature and for what it suggests about the growing reliance on automated agents in routine corporate communication. It has triggered sharp reactions online, with users saying that the incident reflected a deeper problem in how AI was entering business communication.
One user said the episode showed “the new kind of chaos AI is introducing into business communication,” adding that “humans negotiate, AI accidentally spills the deal terms and then AI tries to clean up the mess.”
This is exactly the new kind of chaos AI is introducing into business communication.
— Rekha Dhamika (@rekhacares) November 28, 2025
We've officially entered the era where, Humans negotiate, AI accidentally spills the deal terms and then AI tries to clean up the mess.
It's funny, but also a reminder.
AI can assist in…
Another user described it as “drama in the deal room with a machine stepping on toes,” adding that it should be viewed as a “process failure” rather than a harmless glitch.
Drama in the deal room with a machine stepping on toes.
— Stanley Wei (@StanleyWei4748) November 28, 2025
Treat it as a process failure, not just a quirky apology.
Pause negotiations.
Ask for a human signed confirmation of intent and a clear chain of custody for any disclosed facts.
Confirm whether automated tools are…
Concerns about AI behaviour were echoed by users warning about insufficient oversight. One wrote, “This is exactly why AI agents need guardrails. One slip, and suddenly the ‘helper bot' is leaking acquisition terms.”
This is exactly why AI agents need guardrails. One slip, and suddenly the ‘helper bot' is leaking acquisition terms. We're entering a phase where AI won't just draft emails — it'll accidentally start negotiations
— BLUEARC SYSTEMS (@Bluearcsys) November 28, 2025
Another said that “agentic AI is a misnomer,” adding that such systems “assume power on their own.”
Agentic AI is a misnomer.
— SanthanamVaidya (@sanvai) November 28, 2025
An agent is authorised by someone to talk and act on his behalf.
Agentic AI is an empowerment tool. It assumes power on its own.
Some saw the episode as a sign of things to come in high-stakes dealmaking. As one user put it, “That's a wild glimpse into the future of M&A,” adding that an AI agent apologising for its own data leak is “both impressive and concerning.”
That's a wild glimpse into the future of M&A. An AI agent negotiating a deal, then emailing to apologize for its own data leak is both impressive and concerning.
— Frank H (@FrankhHQ) November 28, 2025
It shows how deeply integrated AI is becoming in sensitive business operations – and how easily it can make…
Just over a week ago, Vembu suggested youngsters get married and have children in their 20s to fulfill their “demographic duty to society and ancestors.”
"I advise young entrepreneurs I meet, both men and women, to marry and have kids in their 20s and not keep postponing it," Vembu wrote on X.
"I tell them they have to do their demographic duty to society and their own ancestors. I know these notions may sound quaint or old-fashioned, but I am sure these ideas will resonate again."
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