OpenAI’s Product Lead has a blunt warning: most AI startups aren’t companies, they’re expensive demos 😬 Chegg waited too long and lost 90 percent of its value. Jasper raised at a $1.2B valuation but collapsed when costs outpaced revenue. Duolingo bolted on AI the wrong way and lost user trust overnight. AI is unforgiving. Features get copied in weeks. Costs scale faster than revenue. The market does not give second chances. Miqdad Jaffer, Product Lead at OpenAI, lays out the playbook for founders who want to survive: ▪️ Moats come from data, distribution, and trust ▪️ Pricing is strategy, not an afterthought ▪️ Every feature must scale economically ▪️ Differentiation has to go deeper than “adding AI” 📖 I am sharing the full guide and frameworks here: https://lnkd.in/exXTNhdR AI Resources you might find helpful: • OpenAI’s New Playbook for Product-Market Fit in AI Startups https://lnkd.in/dy-HgVtX • 2,500+ Angel Investors Backing AI Startups - https://lnkd.in/djjN-TD2 • 50 AI Agent Startup Ideas for 2025 - https://lnkd.in/dy9E-MCn • AI Co-Pilots for Startups & VCs - https://lnkd.in/dSX3ss2q • The Agentic Revolution - https://lnkd.in/dadFm25a • 118 AI Communication Agent Use Cases - https://lnkd.in/dr9cM5BT
The first bullet is so key "Moats come from data, distribution, and trust" I would underline the data in that - but those three things are so key. And those together should drive differentiation. Helpful checklist! A real touchstone for all entrepreneurs in this space!
I think what is said is right but also 90% applies to OpenAi demos too ;)
I have got a deja vu… let me jump on my DeLorean and travel back to 1999… No value creation = no business No matter how much tech you through at it
Building with AI requires more than just features. Loved the focus on data, distribution, and trust as true differentiators.
Rubén thanks for sharing. We are still early.
It's wonderful article, very much eye opener.
Insightful
Distribution and trust is key, AI should be the add on not the main thing.
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2moAll the AI only startups just need to serve a real industry and build deep... xD 😄