Three categories of AI companies
Haebom
According to Gil Dibner’s analysis, AI startups today fall into three main categories: (1) thin and ephemeral; (2) big and weak; and (3) small and strong. This classification helps us understand the opportunities and challenges that startups face.
•
Thin and ephemeral startups: These startups aim to solve narrow business problems using AI/LLMs. Generally, they rely on simple GUIs and a handful of prompt calls. While this approach allows them to enter the market quickly, it often lacks a sustainable business model and carries the risk of being easily replaced.
•
Big but weak startups: This category is intellectually intriguing, but their ideas tend to be vast and somewhat conflated. For instance, they might claim to “organize all knowledge” or “build/integrate any application.” While these startups have ambitious goals, they often lack a concrete plan for execution, which can make them unconvincing to investors.
•
Small but strong startups: These startups are run by founders with deep expertise in a specific field. They focus on a clearly defined customer segment within a specific market and use AI to solve particular problems very effectively. This approach ensures a clear market target and a robust business model.
According to Gil Dibner’s analysis, today’s AI startup landscape presents a variety of opportunities and challenges. “Thin and ephemeral” startups aim for rapid growth, but lack long-term sustainability. “Big but weak” startups offer ambitious visions, yet often fall short on concrete execution plans. In contrast, “small but strong” startups combine a clear understanding of a specific market with a solid business model, which gives them a higher potential for lasting success.
To put it more simply, we could divide them into Service-Driven or Model-Driven types. There are model-driven companies that generate revenue by creating models and charging for API calls or basic usage, and then there are those that deliver new value to customers as a service by leveraging existing services or basic models. Both approaches seem necessary.
Subscribe to 'haebom'
📚 Welcome to Haebom's archives.
---
I post articles related to IT 💻, economy 💰, and humanities 🎭.
If you are curious about my thoughts, perspectives or interests, please subscribe.
haebom@kakao.com
---
I post articles related to IT 💻, economy 💰, and humanities 🎭.
If you are curious about my thoughts, perspectives or interests, please subscribe.
haebom@kakao.com