Part 6/10:
When examining the broader market, the dominant players—OpenAI, Anthropic, Nvidia, Google—have established significant fixed costs by building massive models and infrastructure, creating high barriers for new entrants.
The Difficulties for New AI Startups
Attempting to establish an AI startup that competes directly with established firms is incredibly challenging. For instance, startups that produce generative AI tools often face immediate competition from large firms, which quickly replicate or surpass their offerings, as in the example of a startup creating a video-generating AI model and being rapidly outmatched by OpenAI.