When the peak of the hype cycle starts to fall (and there are signs of that now) it’s going to be a very hard road for the vast majority of these startups. 85%

When the peak of the hype cycle starts to fall (and there are signs of that now) it’s going to be a very hard road for the vast majority of these startups. 85% is probably optimistic. Few have done anything that has defensible IP, there are no moats in this business (if someone builds a better model you just move to that), most startups have no viable business model given the bad unit economics of running generative AI training and inference, the regulatory environment is also ramping up and its looking ugly. Once one looks past the initial wow factor there’s just not much there there from a business standpoint. All that combined with the fact that many VCs are just starting to lick their wounds from some terrible investment decisions of the 2019-22 era and there won’t be much of a net to catch those that stumble. I find the tech really interesting, but this is all looking quite terrible from a business sense.