Artificial intelligence (AI) startups need not fear the recent announcement of OpenAI’s AI “apps” marketplace, according to investors who remain optimistic about the opportunities for innovative AI products. At a Reuters NEXT conference, investors emphasized the continued search for new AI solutions to enhance user interactions and tackle deep tech challenges like brain-computer interfaces.

OpenAI’s move to introduce personalized AI “apps” for tasks ranging from teaching math to designing stickers raised concerns among AI startup founders about potential competition. However, investors, including Konstantine Buhler, a partner at Sequoia Capital, reassured the industry that there is ample room for ongoing innovation in AI. Buhler highlighted that the current stage represents an intermediary step in a more extended revolution, and startups can play a significant role in shaping the future of AI.

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Sequoia Capital, an investor in OpenAI, believes in the potential for continued innovation. Avery Klemmer, partner at Thrive Capital, another investor in OpenAI, anticipates the rise of consumer applications alongside OpenAI’s ChatGPT. Klemmer foresees novel formats and forms of engagement evolving based on the existing AI chatbot model.

While concerns exist about competition from large players like OpenAI, investors recognize that the development of AI products is still in its early stages. The cost of building applications using large language models remains relatively high, but the accelerated pace of research in AI could lead to a rapid decline in the cost of AI inference. This reduction in cost has the potential to inspire new AI products and open up opportunities for startups.

In conclusion, investors affirm that the AI landscape is dynamic and there is room for startups to contribute significantly to the ongoing AI revolution, despite the emergence of major players like OpenAI. As the industry continues to evolve, innovative formats and use cases are expected to emerge, creating a diverse and competitive AI ecosystem.