Most startups that trained their own models are dead, while app-layer companies thrived

ZeYanjie · x · 2026-08-13

Scott Stevenson observes that most startups he knows which trained their own models are now dead, while app-layer companies thrived. Naval comments that people serious about software train their own models. This contrast highlights a trend in the AI startup ecosystem where application-focused companies may have better survival prospects than those investing heavily in training foundation models.

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