I spoke with the ceo of a top ten AI company on Friday. They are definitely playing the PMF lottery and there is no alternative to this. They have lots of very smart people and tons of conversations with customers. But nobody has any idea what will end up working.
Plenty of businesses - probably especially AI companies that do original research - found PMF in a market that’s too small for their cost structure. Like I bet Anthropic and OpenAI have positive margins on their raw APIs if you exclude all R&D costs. Even Google’s AI research is subsidized by one of the largest profit generators in Silicon Valley.
