Old formula for startup is not gonna work in the era of GPT

We need to build a startup with a new formula

In the early 2010s, it was a trend that startups got extremely tremendous amounts of VC funding and then hire massive workforces such as developers, designers, and marketers for their team building. With those massive workforces, they need bigger office spaces to expand their team environment for it. At this period, people believe this is the right answer that every startup should follow. But not for now. As I look at the startup world, the rule of success in the startup sectors are changed! As you see, the Federal reserve has increased interest rates over the more than 5% range. This is the Quantitative tightening. You may see VCs have a tendancy to close their funding bucket and not to invest in newly founded startups that they are not profitable in their business operation. Only Generative AI sectors became popular in the VC world but if these sectors also can not prove that they are profitable, If then...the bubble on startup sectors will explode.

The formula for success in the startup sector has changed

I recently found the trendy variations of the formula for a successful startup have changed. In this quantitative tightening era, startups have started to reduce their operational costs from their daily budget. Some startups might close their business operations. As I said, in the early 2010s, successful startups spent tons of money on their business operation. They believe every successful startup should act like that but for now, it has changed. The reason that the formula for startup success is changed is due to "GPT and other AI technology" This will change the total landscape of the startup world. As I test multiple Generative AI tools, We don't need to hire massive workforces to build business operations. Maybe 10 or at most 50 workforces for a startup will be enough to make their business operational and can reach the level of full functioning in certain levels. I think within the current context of technological and economic status, only startups that can reduce costs, elevate their producitivities using AI and then prove that they are operational and profitable in their business will be surviving in the game of jungle.