Makes sense. Hardware/software overall is monopoly-determined. If you are looking for an exit or a business model in the startup world you have to do something unique. This whole scheme was dead in the water, IMO.
I think this company is very emblematic of the tech bubble. Someone with a name and not much more is able to raise a staggering $330m with nearly nothing to show for it down the line, and 95% of people paying attention could have predicted it was going to be a flop.