Most AI startups are going to fail. Especially if they're not proactively making their own LLM outside of the beast of OpenAI. The winner will be the most cost-efficient build of an LLM and affordable input/output token cost.
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I wonder, what is an AI startup in this context? If AI is the product your selling, yep, your are in trouble! But if AI is a capability you use in your product, you might be ok.