The big AI labs are eating the startup playbook — here’s where founders can still compete
AI labs are encroaching on startup turf, but founders can still compete by focusing on niche markets, deep industry expertise, and building proprietary data moats.Summary
At the Technology Alliance Seattle Investor Summit, investors debated how startups can survive as AI labs like Anthropic and OpenAI increasingly offer tools that allow customers to build their own solutions. Bryan Hale of Anthos Capital noted that this time is different from previous tech giant eras because big companies are now using coding tools to build applications that startups once sold as subscriptions. However, experts like Yifan Zhang of AI2 Incubator and Mia Lewin of TheFounderVC argued that startups can still find profitable niches by targeting smaller markets, leveraging deep industry knowledge, and creating proprietary data advantages. Tim Porter of Madrona Ventures pointed to legal tech startups Harvey and Legora as examples of companies that have thrived despite platform competition. OpenAI CTO Vijaye Raji agreed that domain expertise remains crucial, noting that while AI-generated code has surged, the real opportunity lies in building better testing and deployment tools. Raji highlighted that OpenAI acquired Statsig in 2025 specifically to address these infrastructure challenges.
(Source：Geekwire)
