Artificial intelligence is growing faster than any other technology today. Every week, there is a new startup, new product, or new promise about how AI will change the world. But according to well-known investor Elad Gil, not every part of the AI industry is up for grabs anymore. Some areas already have clear winners, while others are still open for new players.
Gil shared his honest view during a recent talk at TechCrunch Disrupt. He explained which parts of the AI market are already controlled by major companies and which ones still give room for innovation. His insights are helpful for anyone who wants to start a business, invest in AI, or just understand where the industry is heading.
Who is Elad Gil?
Elad Gil is a respected investor and entrepreneur. He has backed companies like Airbnb, Stripe, and Coinbase early on. In the world of AI, he has invested in startups that are now shaping the future of the field. Because of his experience, many people listen carefully when he shares his thoughts on new technology trends.
Gil said the current AI boom is one of the hardest tech waves to predict. Things move fast, and what looks promising today could fail tomorrow. However, some areas are now mature enough that the top positions are taken. Others are still waiting for new ideas and breakthroughs.
The AI Markets That Already Have Winners
According to Gil, a few parts of the AI market already have strong leaders. These are the areas where it would be very hard for new startups to break in.
- Foundation Models:
These are the large systems behind most AI applications, such as OpenAI’s GPT models, Google’s Gemini, Anthropic’s Claude, and Meta’s Llama. These companies have deep pockets, access to data, and advanced infrastructure. For small players, catching up is almost impossible. - AI Coding Tools:
Startups that use AI to help developers write or fix code are already far ahead. Gil pointed to tools like Cursor and Devin, which have built large communities and strong technology. New competitors would find it tough to stand out. - Specialized AI Sectors:
In areas like medical transcription and customer support, Gil said companies such as Abridge and Decagon are already doing well. These markets are getting crowded, which makes it difficult for new businesses to gain attention.
In short, these segments now have established leaders. If you are trying to enter these fields, you would need something extremely new or a lot of money to compete.
The Markets That Are Still Wide Open
Not every part of AI is taken. Gil also talked about areas where there is still space for fresh ideas. He called these the “open markets” of AI.
- Financial Technology:
AI tools that can help banks, investors, or accounting teams manage risk, detect fraud, or make faster decisions are still developing. The winners have not been decided yet. - Business Operations:
AI that automates office work like bookkeeping, HR, or supply chain management is still wide open. Many companies are experimenting, but none have taken the lead globally. - AI Security:
As AI tools become more common, the need to protect them grows. Security for AI models is a new field with many problems yet to be solved. Startups that focus on detecting fake data, preventing misuse, or managing privacy risks could find great opportunities here.
These areas, according to Gil, are ideal for people who want to build the next generation of AI companies. They are valuable but still flexible enough for new players to rise.
The Hype Versus Reality
Elad Gil warned that not all growth in AI means success. Many startups are enjoying fast growth because AI is trendy, but that does not mean their business is strong. He said founders should ask themselves whether their product solves a real problem or just rides on hype.
This advice is important for investors too. It is easy to be excited by new AI companies, but only those that add lasting value will survive. Gil’s message is simple: focus on results, not just excitement.
What This Means for Entrepreneurs and Investors
If you are building a startup, Gil’s advice is to look at markets that are still developing. Don’t try to compete with OpenAI or Google unless you have something completely different. Instead, aim for areas like finance, accounting, or AI security, where there is room to innovate.
If you are an investor, his message is similar. Look beyond what everyone is funding. The best opportunities may not be in the crowded spaces but in the ones where the story is still being written.
For companies using AI, this also means there is still time to lead. By finding real problems and solving them with smart technology, they can set themselves apart before the market becomes crowded.
The Bottom Line
Elad Gil’s comments remind us that the AI boom is still young, even though it feels like everyone is already part of it. Some markets are decided, but many are still forming. The future winners will likely be those who combine creativity with timing, solving problems people actually care about.
AI is moving quickly, but not every door has closed. The question for founders and investors now is: will you try to enter a race that is already won, or will you start a new one where the track is still being built?
Also Read:Sam Altman Says “Enough” to Questions About OpenAI’s Revenue
