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TBH, what should scare you is that most of the AI startups are building on top of someone’s APIs. So, in most cases they have no moat. They are going to close,
by yumraj 2y ago
TBH, what should scare you is that most of the AI startups are building on top of someone’s APIs.
So, in most cases they have no moat. They are going to close, and while some will close due to operational cost issues as you identified, a lot more will close since they have no defensible business/revenue model.
- llamaimperative 2y agoRight, but one group closes by definitionally not doing anything value added. The other group closes by building something value added within a heavily distorted economic environment.
- yumraj 2y agoAgree. But, if the source API pricing is increased, theoretically any startup that has actually created something of value and stickiness should be able to adapt. Or, even better if they can price future API price increases in their own pricing, today.