Charles HudsonFounder and Managing Partner, Precursor Ventures

Comparing ChatGPT to Uber #venturecapitalnews #podcast #startupsuccess #ai

27 Dec 2024 · 0 min

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Charles Hudson questions whether ChatGPT is a viable business model, comparing it to Uber’s early-subsidized rides that created a lasting consumer habit funded by venture capital. He suggests consumers may accept paying for compute-heavy services (e.g., $20) and wonders if private-market subsidies were required to build that habit, as they were for Uber.

Question is, is ChatGPT a good business? And I suspect it is, in the sense that consuming $20 worth of compute for the average person, they're probably okay with it. But I also wonder, is this also like Uber, where Uber was great when I could get anywhere in San Francisco for $5 because my Uber ride was subsidized by uber and the VCs who backed the company ultimately turned out to be pretty good because it created a transportation habit that didn't exist before, but it took private markets financing a lot of that to get through that.