It’s the best of times, it’s the worst of times
It seems like it’s the best of times for founders thinking about launching an AI startup, especially with OpenAI releasing ChatGPT to the masses, as it has the potential to really put AI front and center in business and perhaps everything we do technologically. Who wouldn’t want to launch a startup right now with the energy and hype surrounding the industry?
But it also could be the worst of times for founders thinking about launching an AI startup, especially one that can grow and be defensible against incumbents in a fast-changing environment. And that’s a real problem for companies thinking about this area: AI is evolving so rapidly that your idea could be obsolete before it’s even off the ground.
How do you come up with a startup idea that can endure in such a challenging and rapidly evolving landscape? The bottom line is that the same principles that apply to previously successful startups apply here, too. It just may be a bit harder this time because of how quickly everything is moving.
A bunch of successful founders and entrepreneurs spoke last week at the Imagination in Action conference at MIT. Their advice could help founders understand what they need to do to be successful and take advantage of this technological leap.
CB Insights compiled data from 2021 and 2022 to understand where VC investment money has been going when it comes to generative AI startups. Given the recent hype around this area, it’s reasonable to think that the volume of investment will increase, and perhaps the allocation will be different, but this is what we have for now.