Venture capitalist Chamath Palihapitiya warned that AI-native startups could face growing competition from foundational model developers such as OpenAI and Google as they expand into software applications. He argued that as the cost of each token nears zero, value lies in owning the application layer rather than selling model access, and that AI-native businesses in legal services, sales and customer service could be the first hit. He said foundational model companies can see how these businesses operate through the data and workflows their models process, making it easier to identify opportunities for competing products. The article also cites other views on AI's growing role in workplace tools, including from Palantir's CEO, Raoul Pal and BlackRock.
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artificial intelligencesoftwareOpenAIGOOGL
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 11/04/2026 | 288.99 |
| Change that session | +3.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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