Tomasz Tunguz (Theory Ventures) · 2023-02-02 · 1218d

Incumbent Advantage in Generative AI: Why Distribution Matters More Than Technology

Microsoft and other tech incumbents are integrating generative AI into existing products faster than startups, leveraging massive user bases, data sets, and capital advantages. Successful AI startups will need to innovate not just in technology but in distribution and GTM strategy to compete with established players consolidating AI features across their product suites.

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Metrics in this report

Microsoft Office Enterprise Customer Base

1,000,000+companies

minimum

Microsoft Office paid customers

Microsoft Office Paid Users

350,000,000users

exact

Global Microsoft Office subscriber base

Model Training Cost

millions$

per run

Advanced machine learning model training