Live data from Hacker News

Ask HN: Is it possible to start an AI product without venture capital?

news.ycombinator.com

11–13 of 13 posts

Re: Ask HN: Is it possible to start an AI product without venture capital?

#11
gpt-4o-mini and gemini flash are quite cheap, almost to the point that you can sustain them with ads.

There's a lot of optimizations you can do too. Many seem to forget about options like procedural generation or things like fuzzy logic which could cut down cost and yet be more deterministic.

AI is also one of the kinds of businesses that should be self sustainable without funding. If it's not good enough that people would pay right away, it's probably not going to work with a more complex business model.

I would argue VC funding is either mandatory or unlikely though. AI startups move incredibly fast and odds are you'd get killed by another one without funding. The big AI companies like OpenAI and Anthropic are perfectly capable of releasing high quality competitors, and the mid tier ones like Voiceflow and Langchain are also capable of moving quickly.

Re: Ask HN: Is it possible to start an AI product without venture capital?

#12
post #3

20$ is more than enough to cover the costs. Check token prices.

Economics of LLMs are more complicated than that. It depends entirely on use cases, token use efficiency, and limits (if any) on usage, since if usage is uncapped some users will create negative revenue.

I remember early on AI Dungeon tried to be uncapped. The cost of a few power users was being redistributed to other users and then they decided to ditch the unlimited use plan.
Post reply on HN