Huma Siraj
Once more, OpenAI’s ChatGPT demonstrates that intelligence comes first. Silicon Valley, venture capital, and proponents of innovation have been pushing the concept of “first-mover advantage” for many years. To get market share ahead of rivals, they urge entrepreneurs to seek capital, innovate, and launch swiftly. The message was repeated by academics and business media alike:
First Starts the Race. Smart Wins It
However, the reality is different, and ChatGPT’s meteoric development is only the most recent illustration. A lengthy list of astute movers who outsmart first movers includes
Large personal computer companies like Dell and Microsoft, as well as big-box stores like Walmart and Best Buy internet giants such as Airbnb, Amazon, and Google.
Without venture capital, entrepreneurs like Joe Martin Boxycharm.com and Gaston Taratuta (Aleph) transformed a cosmetics subscription service into a unicorn. Being first did not win for OpenAI. It prevailed by dominating and acting strategically.
The First Mover Myth: Hype Starts It, Strategy Finishes It.
Scholars and the general public have long perpetuated the First Mover myth in venture creation. And even if a lengthy series of astute movers outperformed the so-called first movers, this slogan endures.
According to a Federal Reserve Bank of Boston study, only roughly 11% of first movers dominated, if academic research is required 89% didn’t; in fact, over half didn’t.
The success of ChatGPT’s debut serves as further evidence that being the first to market does not ensure dominance or success. The strategy (product, client segment, competing strategic group, and sales driver) and abilities are what make a business successful, not the idea.
An AI chatbot wasn’t introduced by OpenAI first. However, it outpaced early adopters and revolutionized the market by enhancing already-existing technology and announcing its entrance with a calculated approach. This instance teaches a valuable lesson for anyone pursuing venture growth: smart movers, not necessarily first movers, win.
History of AI: Dreams, Data, and Disruption.
We must comprehend the history of AI in order to assess ChatGPT’s explosive growth. As early as the 1980s, IBM and businesses like as Dragon began introducing commercial AI technologies.
Over the years, a number of large corporations made significant investments in and ventures incorporating Artificial Intelligence. Among them were Microsoft, IBM, Amazon, Google, and Meta. Indeed, it could be argued that almost all of the big IT Companies were engaged in AI.
OpenAI Emerged. Everything Changed.
Out of the haze of an emerging industry came ChatGPT launched by a relatively unknown company, OpenAI, founded in 2015. Far from being a first mover, OpenAI defied expectations. Its product, ChatGPT, has become one of the fastest-growing ventures in history, skyrocketing to an annual recurring revenue of $10 billion by June 2025.
The Smart-Mover Strategy: 5 Things OpenAI Got Right
Here are five lessons that entrepreneurs may learn from this incredible achievement, avoiding the oversimplified and inaccurate label of “first-mover,” since ChatGPT (or OpenAI) was not the first mover and has not provided the media with an easy way to explain its success.
Unicorns Aren’t Built on Products Alone They’re Built on Ecosystems.
Product, segment, strategic group, sales driver, and customer acceptance are some of the components that make it up. ChatGPT was easy to use, practical, and well-positioned for widespread adoption.
Big Dreams Need Big Markets
The majority of businesses must concentrate on the market niche that will allow them to dominate. Using this technique, Sam Walton concentrated on rural communities, while Mark Zuckerberg did the same with universities. Because of its superior offering, ChatGPT has taken over numerous markets. The success of unicorn entrepreneurs like Travis Kalanick (Uber), Jeff Bezos, Steve Jobs II (when he rejoined Apple), and Bill Gates is comparable to this.
One Smart Partner Can Change the Game.
In addition to financial support, OpenAI gained enormous credibility through a significant cooperation with Microsoft that committed over $13 billion.
Give It Away Today, Own the Market Tomorrow.
When it comes to capital-intensive methods and Silicon Valley, the freemium model has proven particularly helpful. OpenAI fulfilled both requirements.
Smart Beats Fast. Every Time.
Typically, early and astute movers who chose the ideal product, segment, strategic group, and sales driver are the businesses that dominate a developing industry. OpenAI fulfilled every need for a smart mover by selecting the ideal combination. and prevailed.
MY TAKE
Winning doesn’t come from being first. Dominance does. Like many billion-dollar endeavors, ChatGPT demonstrates that strategic planning, timeliness, and skilled execution are considerably more important than the launch order. Build the appropriate product for the right market with the right competitive edge for long-term supremacy and the right sales driver to take off with less, rather than rushing to market. Additionally, take action before the industry takes off. Almost all unicorn founders rose to prominence in this way.
