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20VC: Benchmark's Sarah Tavel on Are Foundation Models Commoditising | Why Frontier Models Will Be Closed Source | Why the Value is in the Application Layer | The Future of AI is "Selling the Work" Not the Tools
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Building Value Beyond the Foundation Model
Startups often focus on achieving product parity with incumbents, but the real value comes from building additional workflow and integration for customers. Companies like DeepL have excelled by not only developing their foundation model but also creating seamless workflows and integrations for users. This additional value goes beyond what larger companies like open AI can provide, making it crucial for startups to focus on building layers of value on top of their core model.
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