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Pat Grady quote, Sep 20, 2023

Partner, Sequoia Capital · Sep 20, 2023 · Essay, Generative AI's Act Two

Nonetheless, these early signs of success don’t change the reality that a lot of AI companies simply do not have product-market fit or a sustainable competitive advantage, and that the overall ebullience of the AI ecosystem is unsustainable.

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Words found on the source page on Sep 25, 2026.

More from Pat Grady

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I have my doubts that the labs can afford to spend a constant portion of this compute on internal R&D as the total volume goes up, especially with plans to IPO, as they face increased scrutiny on basic economics.Nathan LambertSep 19, 2026· Post
But in my view, the net effect of the last decade of “Doomer” talk (Coxon appears to be a card-carrying member of that party) has been to make the Frontier AI companies wealthier and more powerful.Gary MarcusSep 10, 2026· Post
Everytime they scream that AI is going to kill us all, VCs toss in billions more.Gary MarcusSep 10, 2026· Post
That’s a fair question at the dawn of the AI age when an app might take about as much time to build as editing a Youtube video. So this means average product retention will collapse, and the days of seeing >20% D30 will feel like a dream.Andrew ChenSep 8, 2026· Post
The future of marketing (and by extension, a large swath of product) is zero-sum and PvP - the abundance of apps/videos/pods/creators/experiences will mean we have infinity times more supply than demand.Andrew ChenSep 8, 2026· Post
The obvious AI variant is to let your users opt in to training your model on their interactions with it. Many will resist that, but if some don't, the model they get to use will outperform the vanilla one used by the others.Paul GrahamSeptember 2026· Essay
About this quote
Said by
Pat Grady, Partner, Sequoia Capital
Where
Generative AI's Act Two
Topics
Startups, Investment
Company
Sequoia Capital
Source
sequoiacap.com/article/generative-ai-act-two/

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