The AI Startup Litmus Test

As we see base models continue to proliferate, and fine-tuned models begin to sit on top of them, our hypothesis is that these “thin layer” products should focus on having a clear opinion of how they form the output or how they shape the human to AI interaction layer. Put simply, the maximally viable product in AI is likely not where the vast major... See more

While I personally wouldn’t go so far as to describe current LLMs as “a solution in search of a problem” like cryptocurrency has famously been described as, I do think the description rings true in an overall economic/business sense so far. Was there really a great crying need for new ways to cheat on academic essays? Probably not. Will chatting wi... See more

However, a key risk with several of these startups is the potential lack of a long-term moat. It is difficult to read too much into it given the stage of these startups and the limited public information available but it’s not difficult to poke holes at their long term defensibility. For example:

• If a startup is built on the premise of taking base L

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