The 4 Questions Startups Ought to Ask Themselves about Constructing with Generative AI by @ttunguz


There are 4 questions a startup ought to ask themselves about constructing a startup that makes use of generative AI.

I introduced these questions & my views on their solutions at Saastr’s Workshop Wednesday.

I had a blast placing this deck collectively. I began with just a few sentences, uploaded them to to stipulate the presentation, popped over to Midjourney to generate pictures alongside the story line, & printed it in IA Presenter.

The video is here. The final slide incorporates the prompts for the pictures within the presentation.

The narrative is :

AI is a large platform change that Goldman Sachs initiatives will enhance GDP 300x greater than the PC.

GS estimates a 1.5-2.9% enhance to US GDP, doubling GDP progress, web of seven% job loss. The PC elevated GDP by 0.006%, in line with NBER

That alone ought to flip heads.

There are 4 questions startups ought to ask themselves about constructing with generative AI.

  1. Layer : utility, platform, or infrastructure? Within the cloud, AWS, Azure, & GCP have created about as a lot market cap as all the highest 100 B2B & B2C publics constructed on cloud (Netflix, ServiceNow, AirBnb, and so forth). However there are 100 functions in comparison with 3 infrastructure distributors.
  2. Market : how you can compete with incumbents? Startups have damaging time to launch in lots of markets with Adobe, Microsoft, & Salesforce launching Gen AI enabled software program in weeks.
  3. Moats : how you can develop aggressive benefit? Competing on algorithms is feasible however exhausting. Entry to proprietary information supplies a moat. Utilization & distribution, like in classical SaaS, are probably essentially the most sustainable & repeatable. Enterprise readiness can be a necessary : guaranteeing patrons are secure from authorized & compliance dangers.
  4. AI Depth : what stage of technical sophistication to convey into the corporate? Startups can combine with a plug-in, construct a prompt-tuning engine (somewhat mannequin on prime of a much bigger mannequin), or develop & prepare their very own fashions. Every subsequent alternative is costlier, however supplies a deeper moat. It’s probably startups begin at plug-ins & then transfer down with scale that affords extra utilization & extra capital to speculate.

When you’re constructing within the house,I’d love to hear from you.


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