Friday, 13 February 2026

Seth's Blog : The next generation of AI businesses

The first generation was built on large models, demonstrating what could be done and powering many tools. The second generation is focused on reducing costs and saving time. Replacing workers or making them more efficient. But you can't shrink your way ...
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The next generation of AI businesses

The first generation was built on large models, demonstrating what could be done and powering many tools.

The second generation is focused on reducing costs and saving time. Replacing workers or making them more efficient.

But you can’t shrink your way to greatness.

The third generation will be built on a simple premise, one that the internet has proven again and again:

Create value by connecting people.

We haven’t seen this yet, but once it gains traction, it’ll seem obvious and we’ll wonder how we missed it.

Create tools that work better when your peers and colleagues use them too. And tools that solve problems that people with resources are willing to pay for.

Problems are everywhere, yet we often ignore them.

And communities (existing and those that need to exist) are just waiting to have their problems solved.

[Here’s a list of network-based tech companies you may have heard of: Facebook, YouTube, WhatsApp, Instagram, TikTok, Reddit, LinkedIn, Wikipedia, Discourse, Airbnb, Etsy, Stack Overflow, Pinterest, Twitch, eBay, Squidoo, Snapchat, GitHub… You can’t use them alone, and they work better when others use them too.]

So far, most AI projects ignore the very network effects that built the internet. That’s almost certain to change.

For those with paraskevidekatriaphobia, consider this your opportunity to build something worth building instead of just waiting for the negative consequences of this change to arrive…

        

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