Learn in Public, It’s Great: How to Build a Defensible AI Startup in 2023

Learn in Public, It’s Great: How to Build a Defensible AI Startup in 2023

In the world of learning, hustling, and creating, there is a divide in the approach: some believe in doing things silently and only showcasing the end product, while others advocate for showing the process and progress publicly. The idea of learning in public is similar to what David Perell says about online writing. This concept revolves around creating accountability, building a feedback loop, seeing your progress, and establishing a community or following.

Austin Kleon, in his book "Show Your Work!", emphasizes the importance of letting go of our egos and sharing our process. By doing so, we allow for the possibility of people having an ongoing connection with us and our work, which ultimately helps us move forward. Kleon suggests that in order to progress, we must first launch ourselves into the public domain. This notion is especially relevant for individuals who are not competing against big brands or corporate companies. By being visible and sharing our work, we can build a personal brand and leverage our visibility. This can lead to opportunities and connections with like-minded individuals who share our interests.

Similarly, when it comes to building a defensible AI startup in 2023, the most delightful innovations are emerging from the bottom up rather than the top down. Companies like Midjourney, Runway, and Stable Diffusion have captured the public imagination with their AI offerings. Open source horizontal models like ChatGPT are forming the foundation of the AI boom, but the real potential lies in building venture-scale businesses on the application layer.

Startups have an advantage over incumbents in terms of speed. Midjourney and DALL-E were early to ship great horizontal platforms, but Midjourney's quick product execution has put them ahead. To build a defensible AI startup, it's essential to think creatively and explore new product paradigms and interfaces made possible by AI. This approach is much more defensible than simply creating a product or tool that existing software companies can easily add to their product suite.

ChatGPT's success is a prime example of using advances in natural language processing (NLP) to drive a shift change in user interface and user experience. While the underlying technology, GPT-3, already existed, it was the conversational interface built on top by OpenAI that made GPT-3 accessible to a mass market. Successful AI products can initially resemble consumer companies, as seen in the largest Discord communities today, such as Midjourney, Open AI, Blue Willow, and Leonardo.ai.

To grow mindshare and foster a strong community, it is important to develop an online personality and engage with issues relevant to the AI community. Offering perks to existing community members, such as gated access to beta users or referral codes, can incentivize non-members to join and create customer evangelists. Appointing power users as moderators in branded community spaces can also help build a sense of ownership and engagement.

Creating a product with shareability and virality in mind is crucial for startups to gain an initial edge. However, long-term moats are built by going where big tech and incumbents won't. Verticalized solutions based on a deep understanding of a target persona can be one of the most defensible ways to build in AI. Moats are further solidified by incorporating collaboration, integrations, permissioning, and workflow into the product design.

When evaluating the market, it's important to consider the buying power of the audience and their actual needs. Understanding the target audience and catering to their specific requirements can help in building a defensible AI startup. The most defensible elements in the application layer are workflow, product, community, and rapid iteration.

In conclusion, learning in public and building a defensible AI startup have common threads. Both require sharing your work, embracing feedback, and establishing a community. Three actionable advice for aspiring entrepreneurs in these domains are:

1. Embrace transparency and share your process: By letting go of your ego and sharing your work, you open yourself up to opportunities and connections.

2. Engage with the community: Develop an online personality, engage with relevant issues, and offer perks to foster customer evangelism and attract new members.

3. Build a defensible product: Think creatively, explore new product paradigms, and focus on verticalized solutions that address the specific needs of your target audience.

By following these actionable advice, you can learn in public and build a defensible AI startup that stands out in a crowded market. Remember, visibility and community are key, and innovation and understanding your audience's needs are the pillars of success.