'The First Victim': Chamath Palihapitiya Warns AI Startups are In the Crosshairs as OpenAI, Google Move Into Software

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Venture capitalist Chamath Palihapitiya warned that AI-native startups could face growing competition from foundational model developers as companies such as OpenAI and Alphabet Inc.'s Google expand into software applications and workplace tools. AI Giants Threaten AI-Native Startups On Monday, in a post on X, Palihapitiya argued that falling artificial intelligence costs were changing where companies could generate value, shifting the focus from selling AI model access to owning the applications built around the technology. "As the cost of the marginal token approaches zero, the value is not in selling tokens," he wrote.