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The Return of Network Effects in the Age of GPT Wrappers

2025-02-10

This article challenges the prevailing theory of AI defensibility, which posited that the high cost of training large language models would create a significant barrier to entry. The author argues that as AI becomes ubiquitous, network effects will become paramount. Drawing parallels to the Web 2.0 era, simple 'GPT wrapper' applications can achieve sustainable competitive advantage by building user networks, enhancing engagement, and optimizing monetization strategies. This will drive a fusion of network effects and AI capabilities, reshaping the competitive landscape.

Viral Growth on Social Media: Fleeting Fame or Sustainable Success?

2025-01-31

Product launches are different in the age of social media. Going viral can bring a massive influx of users, but these are often low-quality, short-lived 'looky-loos'. The author argues that chasing viral growth is misguided; focusing on durability, scalability, and value is key. Sustainable growth comes from high-quality users and retention. Only products that stand the test of time and attract valuable users truly succeed. Metrics like long-term cohort retention, power user engagement, and organic acquisition should be prioritized over fleeting viral spikes.