New Paradigm Investment says AI features alone offer startups little competitive advantage

PUBT · 2d ago
New Paradigm Investment says AI features alone offer startups little competitive advantage
  • New Paradigm Investment warned that AI features alone offer startups little lasting competitive advantage as models become cheaper and easier to replicate.
  • GPT-3.5-level inference costs fell to $0.07 per million tokens in October 2024 from $20 in November 2022.
  • Organizational AI adoption reached 78% in 2024, up from 55% in 2023, according to Stanford HAI's 2025 AI Index Report.
  • The performance gap between open-weight and closed models narrowed to 1.7% from 8% within a year on some benchmarks.
  • Startups should embed products in critical customer workflows, accumulate proprietary data and demonstrate measurable business outcomes to strengthen retention.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. New Paradigm Investment Co Ltd published the original content used to generate this news brief on October 19, 2026, and is solely responsible for the information contained therein.