Published on June 16, 2023

OpenAI's Game-Changing Plugins: Implications and Opportunities for Startups

4.11.2023

Welcome to the 1st edition of our new series. In this series, we will be highlighting insights into current events and their impact on the future of startups. Our OG weekly summary will still occur and we will send that out every Wednesday.

Currents and Startups

Connecting the dots between today's headlines and tomorrow's startups.

OpenAI's Game-Changing Plugins: Implications and Opportunities for Startups

OpenAI's plugins have been a game changer. By connecting to various data sources, these plugins unlock a world of possibilities for startups to build on top of existing platforms and provide enhanced, user-centric services that drive growth and customer satisfaction. See below for list of plugins.

Enter Plugins...

The OpenAI plugins, designed specifically for language models like ChatGPT, revolutionize the way AI interacts with real-time data and third-party services.

By enabling ChatGPT Plus to access live web data, these plugins extend its capabilities beyond the information it was initially trained on. This allows for more accurate, up-to-date, and relevant responses, as well as seamless integration with various APIs and services.

Selection of plugins available

Use Cases for Plugins: Building Cross Platform & Improving UX

With these plugins, ChatGPT Plus can perform tasks such as initiating actions in other applications, executing purchases, and retrieving real-time information. The natural language layer makes interactions with chatbots more intuitive and intelligent, outperforming rigid assistants like Siri and Alexa.

Some other scenarios for plugins for you to keep an eye on 👀

Data retrieval via browser search (now possible via ChatGPT browser)
Initiating complicated commands across apps eg. programming 3D model physics from a single text prompt, running and debugging code until it passes self-generated test cases
Personalized in-app recommendations based on off-platform user data
Streamlined UX for multiple purchases in one session - users can complete multiple transactions without leaving the page - making ChatGPT the ultimate destination site
Customized AI assistants that cater to specific industries or domains, offering specialized support and services tailored to the unique needs of users

AI Market Structure Predictions 💡

This development could trigger the biggest platform shift in the tech industry. However, it remains uncertain if OpenAI will maintain its dominant position.

History has shown that first movers don't always win, as illustrated by Facebook's rise to prominence despite entering the market after competitors like Friendster and Myspace.

Large platforms with proprietary datasets, such as Google, Microsoft, Reddit, Stack Overflow, Quora, and Zapier, could challenge OpenAI by blocking GPT plugins from accessing their data and forcing users to adopt their in-platform AI bots. These datasets could also play a pivotal role in M&A scenarios, creating opportunities for new players to gain market share.

As AI technology becomes increasingly commoditized, barriers to entry are lowered, intensifying competition and driving down prices and profit margins. This means that first-mover advantages in this market may not be as valuable as once thought.

Takeaways for Founders ✅

We predict that after the ways in which these GPT plugins can be used to improve user and consumer experiences, it will be founders with proprietary data sets and models that will be able to use AI to consistently provide defensible value.

Also, keep an eye on competitor LLM chatbots, especially from overseas markets. Regulation is a threat to market leaders. With ChatGPT just being banned in Italy, it's possible that each country/region will have their own rules surrounding chatbots, giving arise to multiple winners in the market.

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Thanks for reading! See you Friday for our summary edition where we feature the coolest startups, jobs, and events.

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