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How to build the foundation for a profitable AI startup


Building a profitable AI business poses unique challenges beyond those faced when launching a typical tech startup.

The coming months could be daunting for AI company founders as they watch their fellow leaders struggle or even fail in new businesses, but there is a proven path to profitability. Startups face many challenges, but AI businesses have some unique factors that can skew financial models and revenue projections, leading to spiraling costs down the road. But be careful, if you expect to sell your solution for $25 per user per month with unlimited queries — and OpenAI is charging you per token behind the scenes — that model will fall flat pretty quickly as your unit economics fail to turn a profit.

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