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Don’t forget to jargon-check your AI
September 29, 2023

Don’t forget to jargon-check your AI

Reading Time: 2 minutes

Hello, and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is our Wednesday show, where we sit down with a guest, talk about their work and dive deep into the rest. This week, we had Nathan Baschez, the CEO and founder of Lex on the show. Lex is an AI-infused online writing tool, and Alex covered the company when it recently raised capital.

Alex really liked his last conversation with Baschez so we decided to have him on the podcast to talk through a few key topics that have been top-of-mind in recent months:

  • How many AI-powered writing tools can the market support?
  • How far into the generative AI moment are we, and how much we should anticipate the technology to improve?
  • We also discussed the nuts and bolts of pricing an AI-powered service and other financial matters related to building a service today that leans on the tech.

That last question is not simply idle musing. Not too long ago, back in 2020, investors could be observed discussing the economics of AI startups, with the perspective at the time indicating that while the cohort might have more difficult early economics, their numbers (gross margins) would improve over time. But what about when a startup is using, say, an OpenAI API for its core AI work? Will similar efficiencies bloom?

Equity is back into its regular groove now that Disrupt is behind us — there’s more to come!


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