Chris Wake, founder and managing partner at Atypical Ventures, expressed skepticism about startups building on existing large language models, describing it as a "race to the bottom". He believes such businesses may be interesting, but not necessarily transformative, and his firm is currently stepping back from AI to observe how the sector evolves.
Key takeaways:
- The AI sector has become increasingly popular over the past year, with many entrepreneurs and investors showing interest.
- Investors are seeking AI startups that have a competitive advantage, especially given the presence of large entities like Microsoft, Google, and OpenAI in the sector.
- Chris Wake, founder and managing partner at Atypical Ventures, expressed skepticism about the potential of startups that build on top of existing large language models.
- Wake believes that while such startups can create interesting businesses, they may not necessarily be transformative, which he finds less appealing.