99% of AI companies are not going to work out: Elad Gill on what to build in AI

Big ideas from a serial entrepreneur ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more We are on a mission to enable you to make you micro-smarter every day - just by 1%, across a range of topic (AI to mental health, politics to economics). We deliver you big ideas across a range of topics - on your email. Grab your special discount right now! [Get 20% off for 1 year]( --------------------------------------------------------------- [99% of AI companies are not going to work out: Elad Gill on what to build in AI]( Big ideas from a serial entrepreneur Jun 24   [READ IN APP](   "99% of AI companies are not going to work out, but the 1% that will could be quite large." [Scientist-investor Elad Gil is making a big bet that business travel ...](q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Feb1cf0a5-6cd6-43b0-a923-d6a90c2d5ceb_4000x2667.jpeg) Elad Gil is a prominent entrepreneur, investor, and advisor in the technology industry, known for his keen insights and successful ventures. He co-founded Mixer Labs, which was acquired by Twitter, where he then served as a Vice President. As an angel investor, Elad has backed several high-profile companies, including Airbnb, Stripe, and Square. His extensive experience and strategic vision have made him a sought-after advisor for many of Silicon Valley's leading startups, solidifying his reputation as a key figure in the tech ecosystem. [Upgrade to paid]( In a conversation with Dave Morin and others, Elad Gil goes deeper into the current state and future potential of AI, highlighting investment strategies, enterprise adoption, and the transformative impact of AI across various industries. A must read for those who are building in AI and are trying to understand the changing landscape. Big Ideas from the hour-long conversation (video embedded in the end*) --------------------------------------------------------------- Widespread AI Adoption AI adoption is happening at multiple levels, with significant advancements in both consumer and enterprise applications. While only a small percentage of AI startups will succeed, those that do could have a massive impact. "99% of AI companies are not going to work out, but the 1% that will could be quite large." [Share]( --------------------------------------------------------------- Revenue Growth in AI Major cloud providers like Azure are seeing significant revenue growth attributed to AI services. This trend underscores the commercial viability of AI technologies and their increasing integration into enterprise solutions, even as full-scale adoption is still on the horizon. "Azure announced a $25 billion quarter of which 5% lift came from AI, adding a billion and a half per quarter in new revenue." Sometimes the best thing you can do is just kind of quit and restart and go do something different. As a founder if you're able to go and start a company those are probably the best most productive years of your life in terms of ability to take risk and therefore if the thing isn't working, move quickly on to the next thing - Elad Gil Diversification Within AI The diversification within AI involves a broad search for product-market fit across numerous applications. This phase is characterized by experimentation and rapid iteration, similar to previous technology waves like mobile and the internet. Despite the high failure rate, the successful ventures will define the next generation of AI-driven innovation. "You suddenly have this blossoming of hundreds or thousands of companies all doing a giant search function in parallel." The Role of Incumbents in AI Adoption Large incumbent companies, particularly in the tech sector, may have a significant advantage in AI adoption due to their existing customer base, data resources, and distribution channels. This could allow them to implement AI solutions more effectively and at a larger scale than startups, even if they enter the market later. However, this also raises questions about the potential for true disruption and the opportunities available for new entrants in the AI space. --------------------------------------------------------------- AI-Driven Buyouts and Industry Transformation Some investors are exploring AI-driven buyouts as a strategy to transform existing businesses and industries. This approach involves acquiring companies with the intention of fundamentally changing their operations through AI integration, rather than simply selling AI software to existing players. This strategy reflects a belief in AI's potential to not just enhance but potentially reinvent entire business models and industry structures. --------------------------------------------------------------- High Stakes and Capital Investment ... Subscribe to NextBig-What: your curiosity copilot to unlock the rest. Become a paying subscriber of NextBig-What: your curiosity copilot to get access to this post and other subscriber-only content. [Upgrade to paid]( A subscription gets you: Access to all posts (and archives) Access to all 3 newsletter sections Min 40% + Discounts on courses and other NBW products (like conferences)   [Like]( [Comment]( [Restack](   © 2024 Zakti Techmedia Private Limited 677, HSR Layout, Bangalore-560102 [Unsubscribe]() [Get the app]( writing]()