As AI models improve, the expectation is that they will converge in quality and pricing, making it essential for startups to build software that leverages this intelligence effectively.

Startups should begin with the best AI model available to ensure success, as leveraging cutting-edge technology is essential for gaining a competitive edge in the market.

New AI models are unlocking startup opportunities in fields like engineering, where they can significantly improve productivity and innovation.

Startups should focus on building the best products on top of existing AI models, as competition will come from other startups rather than the AI giants themselves.

There are two strategies to build on AI: one assumes the model won't improve, while the other assumes it will continue to get better. Most startups are currently built on the former assumption, which could lead to them being steamrolled by OpenAI's advancements.

If only one company has the most powerful AI model, it can be detrimental for startups that rely on that model. However, if multiple companies offer equally powerful models, startups have a safer environment to innovate.

The emergence of multiple AI models reduces the risk of monopolies, allowing startups to thrive in a competitive marketplace.

When a new AI model is announced, the first thought should be about its implications for startups, especially those funded by Y Combinator. Founders need to consider how they will compete with major players like OpenAI for consumer attention.

As AI and large language models evolve, startups may need to hire more software engineers who understand these technologies to automate processes and drive growth post-product market fit.