VCs discuss why most consumer AI startups still lack staying power
Interestingly, even three years after the generative ai boom started, most ai startups are still making money by selling to businesses, not individual consumers Interestingly, although consumers quickly adopted general-purpose llms like chatgpt, most specialized consumer genai applications have yet to resonate According to reports, “a lot of early ai applications around video, audio, and photo were super cool,” said chi-hua chien, co-founder and managing partner at goodwater capital, on stage at a techcrunch’s strictlyvc event in early december Interestingly, “but then sora and nano banana came out, and the chinese open-sourced their video models This highlights that and so, a lot of those opportunities disappeared According to reports, ” chien compares some of those applications to the simple flashlight, which was initially a popular third-party download after the iphone launched in 2008 but was quickly integrated into ios itself Experts suggest that he argued that, just as it took a few years for the smartphone platform to solidify before game-changing consumer apps emerged, ai platforms need a similar period of “stabilization” for lasting ai consumer products to flourish In recent developments, “i think we’re right on the cusp of the equivalent to mobile of the 2009 -2010 era,” chien said
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