Each use case has tens of funded companies. Each is churning out features rapidly, getting to parity faster than customers can imagine. Each has early traction and a worthy claim to win.
What will it take to eventually win the game?
1) Will it be about surviving the multiple shakeouts that each vertical/ use case will eventually see? Letting capital-bloated companies implode and letting the “tourists” give up…
2) Will continued product obsession be the key? Essentially refining the product beyond where others give up…
3) Will choosing non-obvious wedges/ ICPs be the way to differentiate & survive? Serve markets that others are choosing to ignore/ finding unviable to serve…
The technology is still so early, and we clearly have a few decades of upside left. Yet, there is a gold rush going on right now, which I am sure will push people to optimize for the short term.
In that case, will founders who are truly playing the long game ultimately win? Or is it more important to “surf the wave” in the present?
The former will look unattractive in current times and hence, will be undervalued and “contrarian”. The latter will appear to be imminent winners, yet could flame out.
Just some thoughts running through my head!
Great blog! Very sharp and clear in explaining the intense competition in the AI applications layer. While every company has its own strengths, the ones that stay focused on continuously improving their product and delivering real value—especially in areas like AI chips (https://aichips.com)—are most likely to emerge as the final winners in this crowded space.