News Summary

Despite the rapid adoption of general-purpose language models like ChatGPT, most consumer AI startups have struggled to maintain staying power, with their primary revenue streams coming from business clients rather than individual consumers. Chi-Hua Chien of Goodwater Capital and Elizabeth Weil of Scribble Ventures highlighted the need for stabilization in AI platforms, similar to the early days of smartphones, before transformative consumer applications can emerge. The development of a new personal device beyond the smartphone could potentially unlock new consumer AI use cases. Projects such as OpenAI’s collaboration with Jony Ive on a ‘screenless’ device and Meta’s smart glasses are examples of this direction. However, some skepticism exists around AI-powered social networks, which may reduce the human interaction element valued by users.