Tomasz Tunguz - When AI Favors the Incumbents
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. When AI Favors the Incumbents
In his most recent earnings conference call, Microsoft’s Satya Nadella said “Every product of Microsoft will have some of the same AI capabilities to completely transform the product.” Today, Microsoft Teams launched AI features in Teams for a fee. Teams will summarize meetings, create chapters in those meetings, extract tasks, translate in real time, & develop templates for future meetings. Incumbents have lept onto advances in generative machine learning more aggressively than any trend in recent technology history. Mobile, cloud, social - startups led each of those waves. But generative ML differs because incumbents are pushing the envelope. As startups incorporate generative machine learning into their products or develop new products, understanding the competitive dynamic with incumbents will be more important than before. Over the past decade, the most advanced machine learning systems have often been built inside the largest technology companies. For example: PyTorch & zero-shot machine translation across 100 languages at Meta, TensorFlow and Tensor Processing Units (TPUs), built-for-purpose algorithm training silicon at Google. Github Copilot at Microsoft. Tech giants have amassed the largest data sets, leveraged massive balance sheets to finance the human and financial capital-intensive work of training models - which can cost millions of dollars for each run - and amassed years of experience working with large data sets. In addition to these the advantages, these incumbents have another edge : their distribution. Microsoft Office’s customer base spans more than 1m companies & 350m paid users. Microsoft will upsell new ML features across their product suite at a premium - just like Premium Microsoft Teams. A full-frontal assault on the word processor, presentation-building software, chat, or spreadsheets must rely on more than just integrating generative machine learning. It will require a GTM innovation - a new way of acquiring customers to vie with the incumbents. Doubly so in the current environment where CFOs are actively reducing costs by consolidating spend with fewer vendors given the economic climate. The most successful startups leveraging generative models will innovate both in the application of the technology & also in its distribution : finding new applications, new customer segments, novel sales & marketing strategies - out of the focus & acumen of the incumbent giants. |
Key phrases
Older messages
The Future of Startup Office
Tuesday, January 31, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Future of Startup Office 100 years ago, fluorescent lamps
Microsoft as a Mirror - What We Can Expect for SaaS in 2023
Wednesday, January 25, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Microsoft as a Mirror - What We Can Expect for SaaS in 2023 I
How Layoffs in Startupland Differ Between B2B & B2C Companies
Monday, January 23, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Layoffs in Startupland Differ Between B2B & B2C
2023 is the Year of _________
Friday, January 20, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. 2023 is the Year of _________ Frank Bien at Looker kicked off
Rabbits on Firetrucks : Generating Images for B2B Blog Posts Using AI
Friday, January 20, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Rabbits on Firetrucks : Generating Images for B2B Blog Posts
You Might Also Like
The problem with VC: Reason #384
Friday, April 26, 2024
We have brunch with HelixNano cofounder Carina Namih, Isomer enters secondaries market and the startups mitigating AI's impact on the climate. View in browser Notion flagship logo final Good
SaaSHub Weekly - Apr 25
Thursday, April 25, 2024
SaaSHub Weekly - Apr 25 Featured and useful products 12 Foot Ladder logo 12 Foot Ladder Prepend 12ft.io/ to the URL of any paywalled page, and we'll try our best to remove the paywall and get you
Editor’s Brief: The Robotics Renaissance
Thursday, April 25, 2024
Why we're entering into an automation supercycle. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Converso, Mood Board AI, For Future, Editor.do, and AI Chat
Thursday, April 25, 2024
Help solve humanity's existential risks with your talent/money/time BetaList BetaList Daily Win a $100 Amazon gift card? Fill out this one-question survey about domain names. Marc Converso AI
Partnering with Dropzone: Automating Security Operations with AI
Thursday, April 25, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Partnering with Dropzone: Automating Security Operations with
if I were starting over today…
Thursday, April 25, 2024
Read time: 1 min, 20 sec A lot of people ask me: “Pat, what would you do if you were starting all over today?” Most of the time, I think they're looking for a quick fix. (hint: there's no such
Free ecomm coaching from multi-7-figure founders >
Thursday, April 25, 2024
Sign up for foundr+ to learn more > , Here at Foundr, we believe that taking initiative should ALWAYS be rewarded. That's why YOU, as a summit attendee, will get to join an exclusive 4-week
[SaaS Club] The Long Road to Building a Scalable Enterprise SaaS
Thursday, April 25, 2024
Hey Reader Let's connect on LinkedIn! Follow me to stay in touch! Here's a quick round up of what's been going on at SaaS Club: 🎧 Podcast SightCall: The Long Road to Building a Scalable
📂 Virality can be engineered even if it’s not inherent to the product
Thursday, April 25, 2024
Today's newsletter is proudly supported by Videodeck 🎉 One of the most common questions I've gotten in the last year is: "How do we get started with video marketing?" So I
My #1 regret in life
Thursday, April 25, 2024
This email is from THIS podcast - Spotify - iTunes HAPPY THURSDAY! I'm hosting a private office hour at 12pm CT on April 26th for people on this email list ONLY. If you wanna hang out and ask me