Unicorns -> “Zombiecorns” - David Friedberg

The AI industry is experiencing a shift where early-stage venture is focusing on finding great leaders instead of solely relying on funding. Many Series C and later companies have valuations that are less than their preference stack, resulting in equity being wiped out for founders and employees. This has led to a mass exodus of talent from these companies, with many founders starting their own AI companies. This shift has also caused investors to divert their attention and capital to seed and early-stage ventures. The use of auto GPTs has reduced the amount of capital needed, making it possible to achieve progress with lower amounts of money. However, large amounts of money can now become an impediment if investors are forced to do business in a classical way that has changed. Despite the challenges and uncertainties, this environment is seen as an exciting opportunity, with potential for the creation of dozens of new unicorns in various aspects of AI. These include AI infrastructure, co-pilots for various professional categories, and SaaS products with incorporated API capabilities from AI foundation models. The enthusiasm among developers to start their own companies is increasing, as traditional tech giants are no longer offering lucrative packages. This has led to a surge in two and three-person startups, where talented individuals are coding and creating MVPs. Despite the destruction and creation occurring simultaneously, there is optimism for the future and the innovative ideas emerging from this dynamic ecosystem.