Deepgram, a voice-to-text startup, has recently undergone a second round of layoffs due to its shallow moat, making it difficult to withstand the competitive pressure from tech giants. Meanwhile, Jasper, a startup fully reliant on the open-source ChatGPT model, quickly went bankrupt after the launch of ChatGPT. The article suggests that domestic AI startups should avoid becoming "shell companies" by not just blindly following trends and "copying shells," but instead by building their own vertical models, accumulating data in niche areas, and establishing a moat. Startups also need to achieve product-market fit, address real needs, and in the long run, the organic combination of data and models will be the core competitive edge.
Deepgram's Second Round of Layoffs: How Can Domestic AI Companies Avoid Becoming 'Shell Companies'?
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