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Most AI startups are a thin wrapper over an OpenAI or Anthropic API, which means margins are a race to zero the second the underlying model gets cheaper or the platform launches the same feature. Defensibility has to come from proprietary data, workflow lock-in, or distribution — not the model.
Inference cost will eat your business model if you charge a flat subscription. Power users will use 10x what you priced for. Build a metering layer on day one, even if you don't charge for it yet.
Hallucination is a product problem, not a model problem. If your output is wrong 5% of the time and the cost of being wrong is high (legal, medical, financial), you need RAG, citations, human-in-the-loop, or you can't ship. Plan that into v1, not v3.