AI Startups Face Uphill Battle Against Tech Giants Like Microsoft & Amazon

New Delhi, Jul 5 (KNN) In the rapidly evolving world of artificial intelligence, startups are finding themselves at a significant disadvantage when competing with tech behemoths like Microsoft and Amazon Web Services (AWS).

This disparity was highlighted at the recent Global IndiaAI Summit by Abhinav Aggarwal, founder of Fluid AI.

Aggarwal painted a stark picture of the challenges faced by smaller innovators. "If you're just a very small layer, using a ChatGPT API or a mystery API... six months to a year down the line, that wrapper is going to get wiped out," he cautioned. 

The ability of large tech firms to release similar solutions for free, leveraging their vast resources, poses an existential threat to startups operating in the same space.

To survive in this cutthroat environment, Aggarwal suggests a strategic pivot. "How do you make that application layer thicker? You go to the LLM side," he advised. 

This approach involves not only enhancing the application layer to effectively solve end-use cases but also incorporating a fine-tuning layer around the language model.

Fluid AI has found success with a hybrid strategy, focusing on solving specific end-use cases while also developing proprietary AI capabilities. "We're solving for an end-use case, like making a manufacturing plant more efficient, and we build an application layer for that. But then we build some layer of fine tuning around the language model," Aggarwal explained.

The AI expert also highlighted challenges specific to the Indian market, particularly the need for advanced reasoning in AI models. "What we found... is that one year down the line or two years down the line, most of these models or approaches are becoming agentic," he noted, referring to models that can perform multiple steps of reasoning before providing an answer.

Aggarwal emphasised the importance of sustainable AI integration for startups. "When AI is nothing, that's when it's everything," he stated, advocating for a focus on solving real problems with AI as a tool, rather than chasing the latest trends in generative AI.

As the AI landscape continues to evolve, the ability of startups to adapt and create unique value propositions will be crucial in their fight for survival against tech giants. 

The coming years will likely see a shakeout in the industry, with those who can effectively leverage AI to solve real-world problems emerging as the winners.

(KNN Bureau)