Sam Altman on what most startups and VCs are getting wrong about the future of AI

What do you think Most entrepreneurs and VCs are getting wrong about the future of AI? Another great question. I think there are two fundamental strategies to build an AI startup right now. You either bet the technology is about as good as it's going to be, or you bet that the technology is going to get massively better. So if you are building, say like an AI tutor company, you can build a system where as the base model gets smarter, very naturally the level at which students can effectively learn just goes up and up. So maybe it's only effective for sixth graders with the current version, but the next version it's helpful for 8th graders and then 10th graders and then eventually PhD student and you can just get to surf that wave. Or you can say, I'm going to put all my effort into just barely making this work for 8th graders in the limited case of history and do a huge amount of work to like have a human in the loop and correct factual errors for this one class. In the first world, you'll be really happy when GPT5 comes out, and in the second world you'll be really sad. My intuition would have been that 95% of entrepreneurs would have picked the first world. It seems like 95% of entrepreneurs are picking the second world. And then you have this whole like, OpenAI killed my startup meme. But we try to say very loudly, like we get up every morning trying to make the model much better, and if you're doing a little thing to get it to barely work in one specific case, that's probably a mistake.