November 02, 2023

EP 136: Why so many AI startups will die

39 minutes

So many AI startups are going to run out of money, fail, and ultimately die. We know. That's a harsh take but it's the unfortunate truth. So what is the cause of all these AI startups dying? That's what we're discussing today along with the future of startups and how they're impacted by AI.

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Timestamps:
[00:02:00] The rise of AI startups
[00:08:01] Explosive growth in VC funding for AI
[00:11:42] AI startup explosion fueled by money influx
[00:13:51] Startups using someone else's technology will fail
[00:16:07] Build actual products, solve problems, forget money
[00:21:50] Why startups fail
[00:24:52] ChatGPT's new mode, All Tools
[00:27:10] Why ChatGPT will take over
[00:32:07] Microsoft 365 Copilot will be disruptive
[00:38:02] Invest in companies, not just features

Topics Covered in This Episode:
1. Factors driving the growth of AI startups
2. Overview of the impact AI has on the business landscape
3. Challenges and reasons for AI startup failures
4. Cautionary notes for startups and investors

Keywords:
AI startups, generative AI, innovation, startups, failing startups, pre-money valuation, OpenAI, ChatGPT, AI tools, VC industry, private equity, oversaturation, high valuations, disjointed nature, multiple AI tools, Copy AI, Cloud, Mid Journey, Runway, Pica, Canva, Microsoft 365 Copilot, commercial availability, raising awareness, unique products, dependency on OpenAI and Google, Everyday AI newsletter, generative AI with plugins, business landscape, influx of AI startups, funding, degenerative AI market potential.