Are you building Nvidia or just another startup?

Years ago, I was a passionate gamer, depending on the power of Nvidia's graphic cards. Little did I know, this passion would evolve into a deep interest in AI and its potential to transform businesses. Today, as a startup mentor, AI trainer, and Nvidia shareholder, I see firsthand how leveraging AI can help startups rethink their business models and stay ahead of the competition.

When we think of successful business models, technology often takes center stage. But the truth is, great business models don't rely solely on technology. They are a blend of market understanding, strategic planning, and innovation. Let's explore how AI can help rethink business models.

Learning from Nvidia's "Overnight" Success

One of the most striking examples of a company that has successfully leveraged AI to transform its business model is Nvidia. As a shareholder and long-time admirer of their technology, I have watched Nvidia's journey with great interest.

They didn't just "catch the AI wave" and are now surfing towards the sun. For example, they also developed, over 20 years, their CUDA technology, which is now the standard for parallel computing in various industries, from drug discovery to image recognition and medical image scanning.

• Over 1.8 million drug-discovery professionals use it daily. How can you beat that, even if you have competitive technology?

• CUDA has been used in some of the world's fastest supercomputers, including the Summit system at Oak Ridge National Laboratory, which can perform 200 quadrillion calculations per second [1].

What sets Nvidia apart is not just their technology, but their long-term vision and strategic planning. By focusing on multiple aspects—technology, partnerships, and community building—Nvidia has created a business model that is truly unique, sustainable, and difficult for others to replicate.

Nvidia's recent stock market success is a testament to its technological leadership, strategic partnerships, and strong financial performance. As of June 13, 2024, Nvidia's stock price has reached an all-time high, reflecting the company's strong performance and growth potential.

Drivers behind Behind Nvidia's Stock Market Triumph

Let's breakdown Nvidia's success:

• The company has been at the forefront of GPU technology, offering powerful and efficient solutions for various applications, including gaming, artificial intelligence (AI), and data centers.
• In the past year, Nvidia has introduced several new products, such as the GeForce RTX 30 series GPUs, which have been widely acclaimed for their performance and energy efficiency. These GPUs have been particularly popular among gamers and content creators, driving strong demand for Nvidia's products.
• Nvidia has also benefited from its strategic partnerships and collaborations with leading companies in various industries. The company has partnered with major cloud service providers, such as Amazon Web Services (AWS) and Microsoft Azure, to offer GPU-accelerated cloud computing solutions for AI and high-performance computing (HPC) workloads.
• Moreover, Nvidia has collaborated with automotive manufacturers, including Tesla and Volvo, to develop autonomous driving technologies. These partnerships have not only expanded Nvidia's market reach but also demonstrated the versatility and applicability of its technologies across different sectors.
• The growing demand for AI and data center solutions has been a significant driver of Nvidia's recent success. As businesses and organizations increasingly adopt AI technologies for various applications, such as natural language processing, computer vision, and predictive analytics, the need for powerful and efficient GPUs has surged.
• Nvidia's strong financial performance has been a key factor in its stock market success. In the first quarter of 2024, Nvidia reported revenue of $5.66 billion, a 39% increase year-over-year, and a net income of $1.62 billion. These results have further bolstered investor confidence in the company's ability to sustain its growth momentum.

You don't need to be Nvidia to Utilize AI for Discovering Opportunities

I recently had the privilege of working with an inspiring agrotech startup that was about to present their innovative IoT prototype for crop health monitoring.

But the team faced challenges in envisioning effective go-to-market strategies and pricing policies for different target groups.

In this process, we also used AI. Specifically, they tested Poe.com platform, where they can access different LLMs and test their capabilities.

By running a set of well crafted prompts, they were able to brainstorm their go-to-market strategies and evaluate the risks and potential revenues associated with various scenarios. As you can imagine, it was a fun and yet very useful exercise where possibilities were instantly presented and explained.

Of course, AI is not a magic wand, and you should always build on your expertise, knowledge, and intuition. Yet, the synergy between AI and humans proved to be very efficient, saving time and resources, and enabling them to literally test the selected approach the very next day.

Rethinking Your Business Model: A Holistic Approach

So, how can startups and businesses apply these lessons to their own business models? The key is to adopt a holistic approach that considers multiple aspects, not just technology. Here are some strategies to get started:

1. Identify your unique value proposition: What sets your business apart from competitors? How can you leverage AI to enhance and communicate that value proposition effectively? According to a study by McKinsey, companies that effectively integrate AI into their business models can achieve revenue increases of up to 20% [2].
2. Understand your target audience: Who are your ideal customers, and what are their needs and pain points? Use AI to analyze customer data and gain insights into their behavior and preferences. A report by Salesforce found that 76% of consumers expect companies to understand their needs and expectations [3].
3. Build strategic partnerships: Collaborate with other businesses, researchers, or industry experts to expand your capabilities and reach new markets. A study by the Business Performance Innovation Network found that companies with strategic partnerships are twice as likely to achieve their business goals [4].
4. Embrace agility and adaptability: Use AI to monitor market trends, customer feedback, and competitive landscape, and be prepared to pivot your business model as needed. According to a report by Accenture, companies that are more adaptable and responsive to change outperform their peers by 2.5 times [5].
5. Invest in your team: Foster a culture of innovation and continuous learning, and hire talented individuals who can bring diverse perspectives and skills to the table. A study by Deloitte found that companies with inclusive cultures are six times more likely to be innovative and agile [6].

Your New Mantra: What Can You Do With AI?

I believe that startup teams (and mentors) should change their mindset and stop asking themselves "if they should use AI."

The new mantra is "How can I do it with AI?" Meaning, that AI is used as a tool that helps professionals verbalize, rethink, or fine-tune their own, original ideas.

The obvious trap anyone should avoid is outsourcing thinking to AI. In this case, you risk becoming generic, so your business is easy to replicate and eventually replace.

The future is bright for businesses that are willing to rethink their models, turn them into more sustainable, green, also with the help of AI.

For this reason, we launched our EU funded project, Innovators-AI-Launchpad, with the purpose of creating AI tools and trainings for ambitious teams.

While it's still work in progress, you can already:

• Follow our LinkedIn Site: CLICK
• Join dedicated group on business model evolution with AI: CLICK
• And soon, visit our ChatBot Lab to work on your business model and fund-raising.

It's true, that we can't change our business overnight, but with new approaches and some AI support, it is becoming more feasible, actionable, and doable.

By: Kristjan Zemljic

#artificialintelligence #We4You #Hafelekar #erasmusplus #startupbusiness

References

[1] Oak Ridge National Laboratory. (2018). Summit supercomputer. https://www.olcf.ornl.gov/olcf-resources/compute-systems/summit/

[2] McKinsey & Company. (2018). Notes from the AI Frontier: Insights from hundreds of use cases. https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-applications-and-value-of-deep-learning

[3] Salesforce. (2020). State of the connected customer. https://www.salesforce.com/blog/customer-pain-points/

[4] Business Performance Innovation Network. (2019). Strategic partnerships: A powerful tool for innovation and growth. https://www.oliverwyman.com/our-expertise/insights/2023/sep/key-to-future-proofing-business.html

[5] Accenture. (2021). The future of work: A hybrid work model. https://www.accenture.com/us-en/insights/consulting/future-work

[6] Deloitte. (2020). The diversity and inclusion revolution: Eight powerful truths. https://www2.deloitte.com/us/en/insights/deloitte-review/issue-22/diversity-and-inclusion-at-work-eight-powerful-truths.html