Second wave of AI startups pivot from cost-cutting to creating products that couldn't exist before

Inworld CEO Kylan Gibbs launched a Silicon Valley accelerator focused on AI's "Second Wave": products that couldn't exist before LLMs, rather than tools that make existing things cheaper. He argues AI reaches its "real economic potential when it creates value consumers want to pay for." Startups like Particle (media), Luvu (fitness), and Status (gaming) exemplify the shift. Gibbs says the next phase requires real-time responses under 300ms, millions of concurrent users, and deeply personalized experiences.

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