Y Combinator Startup Podcast
Will OpenAI Kill All Startups?
Mon Jul 24 2023Description
OpenAI is focused on building AGI and believes that major technological changes create opportunities for startups. AI can be used to improve products and will have a significant impact similar to mobile, open source backends, and cloud computing. OpenAI was created as a nonprofit to enable others to create value, and this is an exciting time for creative individuals to build cool stuff. Success in AI startups lies in solving customer problems in an amazing way and taking advantage of the space left by big companies prioritizing AGI.
Insights
AGI Focus
OpenAI's focus is on building AGI rather than AI-powered CRM or better search.
Opportunities for Startups
Major technological changes historically create opportunities for startups, and startups are advantaged during periods of rapid technological change.
AI as a Tool for Improvement
AI can be used to build better features and improve products, leading to increased retention and product quality. Cloud computing and open source were initially hyped but became valuable tools.
The Impact of AI
AI will be as impactful as mobile, open source backends, and cloud computing.
Creating Value with OpenAI
OpenAI was created as a nonprofit to enable others to create value. Well-paid people are leaving their jobs to start startups because they believe in the power of LLMs. This is an exciting time for domain experts in AI to do startups.
Keys to Success in AI Startups
Copying AI just for the sake of raising money is not recommended; solving customer problems in an amazing way is key. Big companies prioritize AGI, leaving room for innovation. Existing tools and LMs can lead to an explosion of new startups.
Chapters
- The Importance of AGI
- Opportunities for Startups
- AI as a Tool for Improvement
- The Impact of AI
- Creating Value with OpenAI
- Keys to Success in AI Startups
The Importance of AGI
00:00 - 06:22
- OpenAI is focused on building AGI, not AI-powered CRM or better search
- The debate about whether AGI will be created is irrelevant
Opportunities for Startups
00:00 - 06:22
- There is a lot to learn from history when it comes to major technological changes
- Major technological changes have historically created opportunities for startups
- Startups are advantaged during periods of rapid technological change
AI as a Tool for Improvement
00:00 - 06:22
- AI can be used to build better features and improve products, not just for hype
- Adding AI features can increase retention and product quality
- Cloud computing and open source were initially hyped but became valuable tools
The Impact of AI
00:00 - 11:59
- AI will be as impactful as mobile, open source backends, and cloud computing
- AI is going to be as impactful as mobile or open source back ends or cloud computing.
Creating Value with OpenAI
05:54 - 11:59
- OpenAI was created as a nonprofit to enable others to create value.
- Well-paid people are leaving their jobs to start startups because they believe in the power of LLMs.
- This is a moment in time for domain experts in AI to do startups.
- There are two sets of smart people: those who want to learn about AI and those who have been doing ML for a while and see the potential.
- Some people don't think this is a good time, but those who just want to make money are not attracted to this field.
- This is an exciting time for creative and ambitious individuals to build cool stuff.
Keys to Success in AI Startups
11:35 - 13:09
- Copying AI just for the sake of raising money is not recommended; solving customer problems in an amazing way is key.
- Ignore those who copy AI just for raising money.
- Focus on solving customer problems in an amazing way.
- Big companies prioritize AGI, leaving room for innovation.
- Existing tools and LMs can lead to an explosion of new startups.