Investor: startups hit 'model collapse' as everyone builds the same obvious AI ideas

emilyzsh · x · 2026-09-17

Investor mhdempsey argues the startup industry has undergone 'model collapse' over the past 12-24 months: founders have ceded so much space to AI labs and the echo chamber has grown so loud that new-company idea space is at a local bottom. The ideas aren't bad—they're just obvious, so everyone builds the same thing. He asks people for the last truly unimaginable idea they heard and gets blank stares.

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