Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: OpenAI Head of Engineering predicts AI will lead to a “golden age” for … in Simple Termsand what it means for users..
OpenAI’s API Head of Engineering, Sherwin Wu has said that artificial intelligence (AI) is more likely to change the startup landscape by enabling multiple small companies rather than creating one-person, billion-dollar businesses. Wu appeared on Lenny’s Podcast recently where he said: “It’s hard for me to imagine one person like I’m bearish on this billion-dollar startup.” During the conversation, he explained that as AI lowers the cost and effort needed to build products, more people will be able to launch businesses. He predicted that the emergence of one-person billion-dollar startups will result in a surge of the overall number of startups.This trend, he suggested, can lead to a “golden age” of B2B SAS and software startups. Speaking on the podcast, Sherwin Wu also said that there will be a shift in the startup and venture capital ecosystems that may see a significant decrease in the number of venture-scale return startups and an increase in smaller, high-agency AI-driven businesses.
Future startups may focus on building support software for specific industries
During the podcast, Wu also spoke about the difficulties of scaling a billion-dollar startup, particularly the high cost of customer support. He said one possible outcome could be the growth of smaller startups that focus on building support software for specific industries or use cases.Wu said his views point to a possible change in how startups are built as AI tools become more widely available. He added that easier access to AI is already helping more entrepreneurs launch companies.He also said this shift could create both challenges and opportunities for startups, especially around managing growth and providing support as businesses scale.