Sherwin Wu, head of engineering for the OpenAI API, believes the real impact of AI on the startup landscape will not be the rise of one-person billion-dollar companies, but the emergence of thousands of smaller firms.
“It’s hard for me to imagine one person like I’m bearish on this billion-dollar startup.”
In a conversation on Lenny’s Podcast released on Thursday, Wu shared his views on AI’s future and its effect on the startup ecosystem. He said the growing ease of building a billion-dollar company with AI will likely fuel a wave of smaller startups.
AI to Fuel Surge in Smaller Startups
Wu predicts that the emergence of one-person billion-dollar startups will drive a broader surge in the overall number of startups.
He suggests that this trend could lead to a “golden age” of B2B SAS and software startups.
Wu also anticipates a shift in the startup and venture capital ecosystems, with a potential decrease in the number of venture-scale return startups and an increase in smaller, high-agency AI-driven businesses.
Support Costs Could Spur Niche AI Solutions
He also discussed the potential challenges of scaling a billion-dollar startup during the podcast, especially when it comes to support costs. Wu said a possible solution could be the rise of smaller startups that build tailored support software for specific niches.
Wu’s insights reflect the potential for a significant shift in the startup landscape as AI continues to advance. His predictions align with the current trend of AI-driven startups and the increasing accessibility of AI tools for entrepreneurs.
Wu’s observations also shed light on the potential challenges and opportunities that this shift may bring, particularly in terms of scaling and support.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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