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There's an important difference here in that AI company is basically a new market. If 50% of Mexican restaurants or low-cost database companies that start this year go out of business by 2026 it doesn't matter much because there's a pre-existing mass of them. If 85% of AI startups go out of business by 2026 that's basically 85% of ALL AI companies.


On the flip side, also consider low barrier to entry as drastically inflating the denominator. The cost to start an “AI company” is virtually zero.

The reason “99% of day traders fail” isn’t because day trading is harder than being a doctor.


If, last year, we had seen a headline that "85% of all Blockchain Startups Will Be Out of Business in 3 Years" I don't think anyone would be shocked at that prediction.




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