Our sponsor for this episode is Microsoft. Want seamless collaboration without the cost? Microsoft Teams offers a robust free plan for individuals that delivers unlimited chat, 60-minute video meetings, and file sharing—all within one intuitive workspace that keeps your projects moving forward. Head to https://aka.ms/every to use Teams for free, and experience effortless collaboration, today.Mike Maples knows how AI startups can beat incumbents with billions of dollars. Mike—who wrote early checks to Twitter, Twitch, Okta, and Lyft, and now invests through Floodgate, the fund he cofounded—told me it's not about the smartest model, or raising the most money. Startups can win in AI with better strategy.AI is changing the economics of startups—both how they’re started and how they’re funded. A new breed of companies is emerging, and I invited Mike on the show to talk about how they can best strategize. Last year, Mike co-authored a book called Pattern Breakers, which is essentially a guidebook to why there’s no guidebook to building companies. I really liked it, and my colleague Evan Armstrong reviewed it for Every, so I was glad to have him on. We talk about how shifts in technology create space for smaller players to compete—even with AI giants like OpenAI—and how to capitalize on them.If you found this episode interesting, please like, subscribe, comment, and share! Want even more?Sign up for Every to unlock our ultimate guide to prompting ChatGPT here: https://every.ck.page/ultimate-guide-to-prompting-chatgpt. It’s usually only for paying subscribers, but you can get it here for free.To hear more from Dan Shipper:Subscribe to Every: https://every.to/subscribe Follow him on X: https://twitter.com/danshipper Timestamps:Introduction: 00:02:20Innovate the business model, not just the product: 00:06:02How startups can compete against the likes of OpenAI: 00:15:49Mike’s take on DeepSeek: 00:19:34Why the future has always belonged to the tinkerers: 00:21:44How small teams today can make big money: 00:24:03Find niches that incumbents can’t or don’t want to enter: 00:28:55The qualities of the truly AI-native: 00:47:08How AI changes the funding model for software companies: 00:53:46Knowledge work is moving toward systems-level thinking: 00:58:23Links to resources mentioned in the episode:Mike Maple: @m2jrThe fund Mike confounded, Floodgate: @floodgatefundEvan’s piece reviewing Pattern Breakers: "A New Book of the Startup Bible" Dan’s piece on the allocation economy: "The Knowledge Economy Is Over. Welcome to the Allocation Economy."

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