I agree in general that keyword searching for a buzzword will have false positives, as people work it in to their description just to ride the trend. However, that is a bad example. If the core of your business is developing new AI models, then you are an AI startup. Personally I think it is great that someone is using the recent breakthroughs in AI and applying it to something other than LLMs, as well as trying to fuse rules based systems (physics) and AI. Way more interesting than AI startups that are just trying to slap an LLM onto a task that it isn't ready for. But still an AI startup.
If anything, building a foundation model is a more legitimate "AI startup" than wrapping slick marketing and a bit of tuning around someone else's LLM or diffusion model...