You have former top google employees
You have a great marketing publicity blitz...
What do you get...?
You get "cuil.com" A search engine touted as the google killer.

What you don't get is ..
Localized search results
Image search results
No advertisement..
A stable production site..
So how exactly will this compete with Google ?
The web has grown, so must search. But you don't fix something that ain't broken, not by investing 33 mills. Whether is a lesson learnt the hard way or just starting troubles for a great idea. Time will tell....