An early AI investor explains why most new generative AI startups will fail. They're built in hours by calling GPT with no patents or real differentiation, yet they're still getting funded. Within years, consolidation will leave only companies with defensible technology.
Actually, I would love to like hear some of your thoughts on like how you've seen the generative AI space grow as you've been very early to it.
Yeah, so with a lot of ideas, you want to be early to market. With most spaces, once they become hot, you have a lot of people jumping on the bandwagon. Yeah, AI has been the same way as well. So some of the new people I'm seeing entering the market They don't have patents, they don't have much differentiation, they just call GPT. And some of the products I'm seeing with AI, I'm looking at it and I'm thinking, hey, that's something I can build in half a day. Are you sure you should be building a company on this? But there's hundreds of those companies, you know, where someone can just— you call GPT and build that product in half a day. There's no differentiation at all. And they're all getting funded, which is kind of weird and crazy. But a couple of years from now, a lot of them are going to be copied out of existence.
Paige of Behind Genius driving an AI electric train in St. Louis (Intramotev Visit)
