Start a business on chatGPT?

Start a business on chatGPT? 4 reasons why I won't do it.

𝗥𝗮𝗰𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 Assume you’re doing a translation business that has chatGPT running in the background. Then all your competitors start using it. Everybody has the same cost structure. No one has a USP. Price becomes the differentiator. And there you have a it: a race to the bottom regarding prices and margins. No one wins.

𝗡𝗼 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 The main value driver is the Large Language Model, the “Artificial Intelligence” in the background. You don’t own that. You can be kicked out from the API anytime. That’s too big a risk to build a business on it.

𝗘𝗮𝘀𝘆 𝘁𝗼 𝗱𝗶𝘀𝗿𝘂𝗽𝘁 Anyone can build a service like yours and be just as good from day one. It will be very hard if not impossible to build any barriers of entry for your market. Being easy to disrupt right from the beginning doesn’t sound like the ideal starting point.

𝗩𝗮𝗹𝘂𝗲 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗼𝗻𝗹𝘆 𝗶𝗻 𝗶𝗻𝘁𝗲𝗿𝗳𝗮𝗰𝗲 You can provide value only in building a better interface than the next guy or girl. In the short term, better interfaces to “talk to the AI” will win. But long term interfaces are easy to copy. Again, a race you can’t win.

Would you start a business based on chatGPT or similar services?

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