What is the competitive threat of incumbents in AI and how will the market be divided between startups and established players?

I'm going to start from a slightly different angle, which is this: AGI's coming. Everyone hears it. You are starting to see early signs of it. But if you go to most AI researchers and you say, "Hey, when you have AGI, what do you do with it?" Their first response is, "I'm going to have it make me money." It’s like, "Well, how?" And the first answer is, "I'm going to connect it to the stock market and it should be able to day trade better than everyone else. And then I'll become extremely rich."

The second answer is, "I'm going to let it run its own business and I'm just going to own it." It’ll just bring the go-to market of a company to zero.

The real question is this: what makes an AI company different? Why does it matter that a company is AI-native? In my eyes, what’s important is that it’s deeply rooted in the actual blood of the company. You have to live, breathe it, really use it yourself, and be constantly improving it. 

Our belief is that larger companies won't be able to do that—they just won't be able to be completely AI-native. Only when the AI has full access to all the information and all the systems and processes, and all the context of the business, will it be able to just constantly generate more value itself.

A great example of this is chess playing AI. It'll make what looks like a really dumb decision now, but it pays off six moves later. AI models can have a similar type of mindset when it comes to building businesses. It's a very similar play. 

For Paul and I, our entire vision is this: what can you do where AI becomes this valuable, where you just plug it in and it starts creating value on its own. That's stuff that is going to be really hard for incumbents with systems built out to really just add in as an additional value add.