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OpenAI Isn’t Killing Startups—Startups Are Killing Themselves

Writer: Startup BellStartup Bell

Sam Altman, CEO of OpenAI, doesn’t mince words when it comes to the future of AI startups. His take? If you’re not aligning with the relentless pace of AI advancement, you’re setting yourself up for failure. Altman’s vision is clear: the next wave of innovation will leave behind anyone clinging to outdated models or narrow use cases. For entrepreneurs and investors alike, this is a stark wake-up call—adapt to the accelerating AI landscape, or risk getting crushed under its weight.


Sam Altman, CEO, OpenAI
Sam Altman, CEO, OpenAI

Photo: Getty Images


Two Roads, One Choice

Altman outlines two strategies for building AI startups today. The first is to ride the wave of AI progress, creating solutions that naturally evolve as models like GPT improve. The second? Pouring effort into making current technology barely functional in a narrow context.

The harsh reality, Altman says, is that 95% of entrepreneurs are choosing the second path. They’re fighting against progress, desperately patching up today’s limitations. But as OpenAI continues to push the boundaries, these efforts will quickly become obsolete.


OpenAI Isn’t Killing Startups—Startups Are Killing Themselves

There’s a growing meme in the tech world: “OpenAI killed my startup.” But Altman is quick to counter this narrative. OpenAI isn’t out to destroy startups—it’s focused on making AI models better every single day. If a startup builds its value on outdated technology, it’s not OpenAI’s fault when that business model collapses.


“Be with us, or get left behind,” seems to be the unspoken message. And for good reason—OpenAI’s advancements are reshaping industries at an unprecedented pace.


A Case Study in Obsolescence

Think back to the rise of smartphones. Some app developers built solutions designed for the limited capabilities of early devices. Others anticipated the rapid improvements in hardware and software, creating scalable apps that could thrive on newer platforms. The result? Those who bet on progress dominated the market, while the rest faded into irrelevance.


The same principle applies to AI. Betting against technological advancement is a losing strategy, plain and simple.


The OpenAI Advantage

Startups that align with OpenAI’s vision have a massive advantage. They can focus on creating innovative solutions without worrying about patching up current limitations. With every new version of GPT, their products become inherently better, opening up new opportunities for growth and impact.


Altman’s advice to entrepreneurs is clear: “If you’re doing a little thing to get it to barely work in one specific case, that’s probably a mistake.” The future belongs to those who build for scalability and adaptability.


Adapt or Perish

The AI landscape is evolving faster than ever. For entrepreneurs, this means one thing: adapt or perish. Aligning with OpenAI’s vision isn’t just a smart move—it’s a necessity. The pace of progress won’t slow down for anyone, and those who fail to keep up will be left in the dust.

In Altman’s world, it’s simple: you’re either part of the future, or you’re history. The choice is yours.


Watch Sam Altman:

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