Building frontier AI models is not a viable business for startups due to immense capex and compute requirements.
Existing AI tooling and data platform companies (e.g., Databricks, Snowflake) face significant competitive risk from foundation model providers expanding their offerings.
The shift to AI-generated code creates a new challenge in ensuring the safety and robustness of software at scale.
Opportunities Identified
Building 'applied AI' agents for specific business functions like customer service and sales represents a massive market opportunity.
Developing new programming systems and languages tailored for an era of AI-generated code.
Pioneering outcomes-based pricing models that directly tie the cost of software to the value it creates for the customer.