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Why AI Infrastructure Startups Are Insanely Hard to Build
Level of difficulty: insane
I also believe many founders agree with this viewpoint, which explains the sale of Adept (to Amazon), Rockset (to OpenAI), InflectionAI (to Microsoft), as well as the soon to be acquisitions of Stability (if it happens), Character AI, etc. I’m sure founders can create essentially system integration agencies targeting SMB or mid market, and call themselves an AI infra company. Narrowing the scope and going vertical is a typical response for AI infra startups - but I argue that these pivots rarely work out and cause new set of problems.
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