Many AI startups building agents and getting funding have a tough road ahead if they want to go public (IPO). More likely, they'll get bought by big tech companies.

As a software developer using tools like ChatGPT, GitHub Copilot, and Cursor, I see that today’s chatbots struggle with basic tasks and have pretty high error rates, around 5% or more. This makes them unreliable, especially when they need to work with multiple software pieces. Creating effective agents involves many steps, with chatbots being just one part.

Even though these technologies might get better in five years, startups can't currently compete with well-funded companies like OpenAI or Anthropic. Using models like GPT-3, startups are unlikely to reduce error rates enough to succeed in the near term.

🇧🇷🇺🇸-  Book: Making Things Think: https://holloway.com/mtt. Investor in Wander, Carry, Footprint, Merkle Manufactory (Farcaster), Dynamic, Paragraph.

The journey for AI startups is tough, especially aiming for IPOs. They might improve over time, but the current high error rates make competition fierce. Likely, we’ll see them acquired by giants like OpenAI. The true challenge is mastering integration and reliability while navigating rapid tech evolution.