AI Models As Suppliers

A new business model is emerging where entrepreneurs can leverage AI models like traditional dropshipping used Alibaba - focusing on marketing and distribution while the AI handles production. Here's the framework:

Core Concept

• AI models are the new "suppliers" - similar to how Alibaba/AliExpress enabled dropshipping
• Entrepreneurs don't need to build AI technology, just leverage existing models
• Focus on marketing and distribution rather than technical development
• Can quickly get to 7-figure revenue with minimal infrastructure

Key Business Examples

• AI Content Generation

  • Copy.ai and Jasper started this way
  • Use existing models with templates
  • Add Stripe integration
  • Focus on SEO and distribution

• AI Companionship Apps

  • Companies generating $1M+ in cash flow
  • Don't require deep AI expertise
  • Leverage existing models for conversation
  • Replica doing estimated $50M+ in revenue
  • Users spend hours daily with companions

• AI Video Generation

  • Companies like Heygen reaching tens of millions in revenue
  • Zero spent on paid marketing
  • Content naturally goes viral
  • Deep market potential in video creation
  • Use cases across SMBs, creators, enterprises

• AI Headshots/Photos

  • Professional headshot generation
  • Can run profitable paid acquisition
  • Target professionals needing LinkedIn/website photos
  • ~$300-400 price point per customer

Success Factors

• Find specific niche use cases
• Focus on distribution and marketing
• Keep costs low by using existing models
• Create clear value proposition
• Make product easy to use
• Target commercial applications
• Build on viral/engaging capabilities

Growth Potential

• Quick path to first $1M in revenue
• Can expand to $10M+ with good distribution
• Potential for $100M+ with product depth
• Need to build moats beyond initial wedge
• Requires ongoing product development to scale

Challenges

• Need traditional moats to reach $1B+
• Risk of commoditization
• Must add unique value beyond base AI
• Competition will increase
• Marketing costs may rise over time

The key is combining AI capabilities with strong distribution and specific customer use cases, rather than trying to build new AI technology from scratch.