AI wrappers in crisis

and the path forward

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Are AI wrappers in crisis? 👀

Two startups developing products using generative AI laid off workers recently.

Jasper AI, cut staff this week, and the head of product just left.

The competition is getting fierce and seems like their product is not differentiated enough. Plus, they’re still charging a lot more than other similar, if not exact tools.

And this all happens despite their $125M Series A funding at a $1.5B valuation in October, last year.

It seems like they dove into a red ocean, not a blue one.

Mutiny AI is the second startup, that cut about 30% of their staff, or around 30 jobs — according to former employees who lost their jobs.

But, can AI wrappers build moats?

If you think about it, No-Code platforms are like "code-wrappers" — they provide visual tools for website creation without coding.

We’re visual learners so this makes a lot of sense.

Similarly, AI wrappers can thrive if they can demonstrate a unique value proposition that goes beyond merely repackaging an existing tech.

Maybe simplifying the prompts via a visual dashboard is going to be the new “no-coding” equivalent for AI prompting.

And maybe, there is some other unique value that we still haven’t thought of.

However, the key still lies in understanding clients' needs and pain points and building solutions to solve them.

Some may argue that Jasper is simply reorganizing to focus on a specific group and improve outcomes for that particular audience.

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WHAT ELSE IS GOING ON

🦙 Actors say Hollywood studios want their AI replicas — for free, forever. Hollywood studios proposed that background performers should be able to be scanned, get one day’s pay, and their companies should own that scan, their image, their likeness and should be able to use it for the rest of eternity on any project they want, with no consent and no compensation. Ripped straight out of a Black Mirror episode?

👀 This AI can do 5-40 min sales and service calls over the phone. According to the maker Caleb Maddix, Air is currently on live calls, talking to real people every single day. And it’s not limited to a specific use- case - it can be an AI SDR, 24/7 CS agent, or an Account Executive. You need to get on the beta to try it out.

🏋🏻‍♀️  Stability AI releases Stable Doodle. This is a sketch-to-image, and it uses the latest Stable Diffusion model to analyze the outline of a sketch and create a realistic photo. Try it here.

RESOURCES

The best resources we came across lately that will help you become better at writing prompts & building AI apps.

[thought-provoking]

🎥 Racing charts with Code Interpreter [ interesting use-case ]

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