OpenAI Just Killed 100's of Startups

OpenAI announced an update a few days ago that killed tons of start ups

basically, a lot of these AI companies were what we called “GPT Wrappers”

which basically meant you were taking chatgpt (or GPT) and connecting it to a front end and selling it as your own for some specific use case and maybe you even fine tuned the model

some examples were people that made study tools for kids to cheat on homework

or even extreme examples like RizzGPT if you ever saw that

now when you’re starting a software company you have to consider something called platform risk

meaning if in order for your software company to work, you depend on one platform, you have high platform risk

we saw a lot of startups get killed earlier this year when twitter (or X) changed their API access and made it $42,000/month

GPT wrappers were cool, and some were honestly great products, but high platform risk

if you’re getting into software, I’d recommend you access the platform risk before you go all in on an idea

or if you want to do an idea but understand there’s platform risk, you can’t complain when the bad hits and your startup gets nuked

but this is the name of the game, business can be ruthless and is the ultimate sport

and so if you’re going to play, you need thick skin

anyways, have a few spots on the calendar that I’m personally taking calls to see if people are a fit for our software incubator

so if you’re interested, book a call here

best,

alex