VCs discuss why most consumer AI startups still lack staying power [TechCrunch]
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Although consumers quickly adopted general-purpose LLMs like ChatGPT, most specialized consumer GenAI applications have yet to resonate. “A lot of early AI applications around video, audio, and photo were super cool,” said Chi-Hua Chien, co-founder and managing partner at Goodwater Capital , on stage at a TechCrunch's StrictlyVC event in early December. “But then Sora and Nano Banana came out, and the Chinese open-sourced their video models. And so, a lot of those opportunities disappeared.” Chien compares some of those applications to the simple flashlight, which was initially a popular third-party download after the iPhone launched in 2008 but was quickly integrated into iOS itself. He argued that, just as it took a few years for the smartphone platform to solidify before game-changing consumer apps emerged, AI platforms need a similar period of “stabilization” for lasting AI consumer products to flourish. “I think we're right on the cusp of the equivalent to mobile of the
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