Part 7/10:
Reflecting on the past 15 years, the success of many SaaS companies was driven by the cloud's emergence and advances in big data, which allowed smaller firms to challenge outdated competitors. However, such opportunities are becoming scarcer now because large, established companies have already leveraged AI and accumulated massive customer bases and revenue streams.
Barriers to Entry and Opportunities
Attempting to build an AI company at the chip or data center level is highly expensive and technically demanding. Meanwhile, Level four enterprises—those developing the software infrastructure—are exploring niches but face stiff competition from the biggest players who are already in the space.