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My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Takes

AI companies are much harder to predict for long-term success than previous software companies because of extremely rapid growth and uncertain sustainability

Spiciness
prediction

The Reasoning

Traditional software companies had steady, predictable growth patterns over 7+ years. AI companies reach $100M ARR in 4-5 months, making it impossible to evaluate sustainable foundations

What Needs to Be True

  • AI growth rates stabilize
  • Clear differentiation emerges between companies
  • Business model sustainability becomes apparent
  • Competitive moats develop

Counterargument

First movers in AI will capture most value and become dominant platforms, making early bets worthwhile despite uncertainty

What Would Change This View

Seeing AI companies maintain growth rates for 2+ years with clear moats and sustainable business models

Implications for Builders

Be cautious about joining AI companies for equity

Focus on AI applications in stable markets

Avoid betting career on AI company stock

Consider traditional software opportunities

Example Application

Instead of joining hot AI startup for equity, choose established software company adding AI features for more predictable wealth building