Sink, swim, or scale: What startups teach us about launching AI

Alexey Komissarouk, a Growth Engineering Advisor, discusses the unique challenges AI products face in achieving sustainable growth, using examples from the industry to illustrate key points. He highlights the viral-surge paradox, as seen with companies like Manus.im and Wombo, which faced massive demand spikes that threatened their scalability and survival. He also explores the usage-to-cost spiral, as experienced by Midjourney, where increased usage leads to unsustainable costs, and prompt-fatigue onboarding, exemplified by Notion AI, which initially struggled with user engagement. Lastly, he addresses the complexities of pricing probabilistic AI products, drawing on Perplexity's token-metered API and Notion AI's pricing adjustments. Komissarouk emphasizes that while AI startups should focus on creating desirable products, strategic investments in scalability, pricing, and user experience are crucial to successfully navigating the AI growth landscape.