Matt Bornstein is a partner at Andreessen Horowitz (a16z). He is explaining why early-stage AI startups struggle to implement value-based pricing strategies.
“And the reality is most AI companies don't know what value they're generating yet. Like this is like so new and so nascent that it's like, hey, we're just going to charge something that we're not going to lose money on.”
quote is from the automated transcript, cleaned for reading:
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More from Matt Bornstein
Opinion
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“I think the best way to think about this is simply that we're going to have more developers. I think it's very unlikely that like we're going to shrink development teams because we have amazing new tools. Like that's just kind of not how these markets have wor…”
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Bornstein: Synthetic data will not produce self-improving AI models
“The question is, like, does this lead to sort of, like, a self-improving utopia of models or not? And I think we have some pretty strong opinions on the not side of that.”
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AssertionNot checkable as stated
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“In practice, I think most buyers are actually pretty sophisticated about what's going on under the hood. And to your point, they know it's like pretty simple stuff happening. And so what does it cost you to run all these GPUs? And we'll pay you some premium ov…”
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