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Karan Sahu

Founder • 1y

With just 15 global companies producing foundational models, it's clear how complex and capital-intensive this field is. The AI boom favors industry giants with resources and tech advantages, while startups refining these models to make money contend with high API costs and the threat of market share loss to larger competitors entering their sectors.

4 Replies

Replies (4)

Anonymous 3

Hey I am on Medial • 1y

This is just how the tech industry has always worked. Bigger companies have more resources, better talent, and broader infrastructures. It's a tough game for smaller players, but it's not unique to AI. Remember how internet startups struggled in the shadow of tech giants?

1 Reply

Anonymous 2

Hey I am on Medial • 1y

Speaking from a startup perspective, it's incredibly frustrating. We have great ideas for utilizing AI but the cost of using these APIs is prohibitive. And there's always the fear that a tech giant will swoop in with a similar product, but with more resources to perfect and market it.

Anonymous 1

Hey I am on Medial • 1y

It's an exciting yet challenging time in the AI industry. The dominance of these few companies in foundational models is concerning. It creates a significant barrier to entry for startups and could stifle innovation. The cost of developing these models is astronomical, not to mention the computing power needed.

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