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20VC: Perplexity's Aravind Srinivas on Will Foundation Models Commoditise, Diminishing Returns in Model Performance, OpenAI vs Anthropic: Who Wins & Why the Next Breakthrough in Model Performance will be in Reasoning
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Benefiting from Commoditization of Foundation Models
A company's success lies in packaging commoditized models into great product experiences, allowing them to sell at a premium to users. This approach leverages the power of foundation models while maintaining a direct relationship with customers, offering a competitive advantage in the market. Building such a company requires a unique blend of design, product, AI, and search capabilities. Success in this model requires traversing a challenging fundraising process.
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