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When AI Favors the Incumbents

Tomasz Tunguz

Incumbents have lept onto advances in generative machine learning more aggressively than any trend in recent technology history. But generative ML differs because incumbents are pushing the envelope. In addition to these the advantages, these incumbents have another edge : their distribution.

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Every time OpenAI cuts a check for training data, an unlaunched competitive startup dies. Without a ‘safe harbor,’ AI will be ruled by incumbents.

Hunter Walk

Right now I’m comfortable betting on innovation from small teams in the ‘approach,’ but if experimentation is gated by nine figures worth of licensing deals, we are doing a disservice to innovation. Companies like the New York Times are willing to litigate this issue (at least as a negotiation strategy).

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The Future of Corporate Venture Capital

500

Conventional wisdom dictated that incumbents should focus their innovation efforts on R&D and growing their cash cows while investing in a few startups. We believe the new corporate landscape calls for new strategies. But the rate of change has accelerated and with it, the balance of internal versus external investment.

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MakeSpace Raises an Additional $17.5 million and Unveils Strategy to Make Public Storage the Next Blockbuster Video

Both Sides of the Table

They are the classic case of the Innovator’s Dilemma because they fundamentally can’t innovate on their product and can’t lower costs or their business craters. They have high-priced property and zero innovation. It’s no wonder incumbents don’t want us to exist. The Early Years.

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Why your company requires both brains and brawn to succeed

Entrepreneurs' Organization

Others may call this dichotomy digital versus physical, the disruptor mindset versus the incumbent mindset, start-up world versus Fortune 500, or tech culture versus industrial culture. Amid the insistent drumbeat of digital transformation, those traditional, old-fashioned competencies are easily overlooked and underappreciated.

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Per Seat or Per Use Pricing: A Framework for Evaluating the Right Strategy for Your Startup

Tomasz Tunguz

Many people think of pricing as monetization, but just as important to think through it as an acquisition strategy. If you are pursuing a two step go-to-market strategy with which the first user has a low willingness to pay, but the ultimate buyer has a larger budget, consider usage pricing. Value/ Usage. Intermittent. Intermittent.

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5 lessons from ‘Star Wars’ that can transform startup managers’ strategies and tactics

TechCrunch

Unfortunately this is all too common among the leadership of incumbent corporations. The lesson for innovators is that you can’t meditate your way to organizational change. When faced with confusing facts and suspicious clues, what did Yoda do? He retreated to his chambers to meditate, but he did not take action. Yes, Yoda got Kodaked.