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It's a gold rush right now. Business models don't matter to investors because they want to fund 100 startups with the hope that maybe a couple will hit it big.
by cj 3y ago
It's a gold rush right now. Business models don't matter to investors because they want to fund 100 startups with the hope that maybe a couple will hit it big. The goal isn't for all 100 startups to be successful. If these aren't VC funded, maybe just cool side projects and no need for revenue model?
Just like during the peak crypto hype, people were doing things that clearly had no obvious business model. Some figured it out, maybe pivoted a few times, and are successful. Most silently disappeared.
The AI space is really hard to have a long term business model strategy because the market is evolving insanely fast. Your long term business plan could easily be killed by 1 feature release from OpenAI without notice. Perhaps that's anothe reason people are focussing more on use adoption rather than revenue.
The reality is user adoption in AI has WAY more value than revenue growth. You can always monetize later. But first you need users. Most companies prioritize user adoption and worry about revenue later (that's what VCs want from early seed stage AI startups... users are gold, revenue is just a cherry on top).
Obviously thats not sustainable. But that's ok... most companies don't fail because they didn't generate enough revenue. They fail most commonly because they couldn't build a product that could attract enough users (which made it impossible to generate revenue). So it kind of makes sense to stress out about user adoption, because if you can't get that, your business model doesn't matter.