Essay · 12 min read

AI: Startup Vs Incumbent Value

Elad Gil Free Advanced

Before you commit, you need to know whether the value from your AI idea accrues to you or to an incumbent who bolts the feature on. Gil lays out when startups capture the upside and when the platform or the model provider does. It is a sober check against building something a giant absorbs in one release.

  • Ask whether the value lands with you or an incumbent
  • New customer segments beat head-on fights with giants
  • You usually need to be ten times better to win the same buyer
Open on blog.eladgil.com ↗

The question it answers

  1. How do I spot an idea that AI just made possible that was not viable two years ago?

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