{"id":606,"date":"2025-08-06T07:22:45","date_gmt":"2025-08-06T07:22:45","guid":{"rendered":"https:\/\/www.vaayushop.com\/blog\/?p=606"},"modified":"2025-08-06T08:24:23","modified_gmt":"2025-08-06T08:24:23","slug":"why-openai-burn-billions-give-it-free","status":"publish","type":"post","link":"https:\/\/www.vaayushop.com\/blog\/why-openai-burn-billions-give-it-free\/","title":{"rendered":"Why burn Billions & give it free?"},"content":{"rendered":"\n

Why OpepenAI released Opensource models<\/strong>? Smartest business model we discovered accidentally. <\/h3>\n\n\n\n

OpenAI released Opensource models after spending billio<\/strong>n. Do they have cash to burn? no…it’s a smart move that most of market doesn’t see…. is it smartest business model? may be…there are variations.<\/p>\n\n\n\n


Is it really free? What Indian startups, businesses & investors should learn from not so obvious things in AI era?<\/p>\n\n\n\n

Short answer – Give free is smartest Business model not philanthropy. <\/strong><\/p>\n\n\n\n

Nor its burning cash for nothing. It\u2019s most advanced business model, few understand.<\/strong><\/p>\n\n\n\n

How we discovered world’s smartest model accidentally & how we are doubling down<\/h3>\n\n\n\n

We discovered it accidentally in our first round, when we didn’t even know word pitch deck. Read more – How strangers became angels<\/a> when we didn’t even know about word “Pitch Deck”. We did MVP in 15-day, landed a $110k angel round, and connect with giants like Razorpay and L\u2019Or\u00e9al, all while using free resources, minimal cost. The secret?<\/p>\n\n\n\n

Give value first, expect later<\/em> or better don’t expect at all. Trust the process & stay long enough. But how<\/em>? What to do in AI era.<\/p>\n\n\n

\n
\"\"<\/figure><\/div>\n\n\n

Throwing CXO lunches or money isn’t the solution – Free Value is<\/h2>\n\n\n\n

I attended CXO event where who’s who of C-suite were given stay at 7 star hotel, lunch, pick up & drop. Off stage C-suite told me – “It’s fine we come here, but that doesn’t cut ice”. Problem is same in US. <\/p>\n\n\n\n

Burning cash is easy, generating value is difficult. Knowing what to generate is even harder<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

We experien<\/strong>ced first han<\/strong>d buildin<\/strong>g Vaayu – raising or burning more money isn’t the solution.<\/strong> There are bigger problems that mon<\/strong>ey can<\/strong>‘t solve. So, In our fourth round that we just closed – we raised just enough. <\/p>\n\n\n\n

Easier said than<\/strong> don<\/strong>e – needs heart of iron & focus of an eagle on goal & some capital. <\/p>\n\n\n\n

Many investors go to other extreme<\/strong>. They make it about “how much money you make?”. This is a trader min<\/strong>dset. Doesn<\/strong>‘t work in<\/strong> AI for n<\/strong>ow.<\/p>\n\n\n\n

They think it’s sign of efficiency. Sorry – that’s not. Many startups have done AI Washing like builder.ai <\/strong>to show money makin<\/strong>g.<\/p>\n\n\n\n

Value comes first, Builds trust, money comes later<\/h2>\n\n\n\n
    \n
  1. We in India haven\u2019t yet caught to it despite using whtsapp\/gmail\/social media for free for decades. Our business models are yet simplest trading based.<\/strong> Buy at x – sell at y. Not long term. While economy has discovered complex ones. We are transactional. \u201cEk hath de, ek hath le\u201d. Not best model. <\/li>\n<\/ol>\n\n\n\n

    Why we should care to offer value for free first<\/h3>\n\n\n\n

    Startups are brutal. About monopolistic market<\/strong>s. Today FB, Google, Whtsapp are our economy bloodline. They have got to monopolistic levels….Cz they offered value first…monetize later.<\/p>\n\n\n\n

    We don’t have to be that big. But Free Value first is best to make mini monopolistic island.<\/p>\n\n\n\n

    While most of world asks for money first – We flip the game. Offer Value Free first, without expectations. Let it monetize later.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    How to go lateral to offer value first – How are we doin<\/strong>g it<\/h3>\n\n\n\n
      \n
    1. \u2060I suggested to banks CEO & automotive- Give advance roboadvisors free to customer<\/strong>. It\u2019s not very expensive. 5-7rs per customers per month. But you get whole context of customers over years. It will become unbreakable moat for them in 10 yrs. <\/li>\n\n\n\n
    2. \"Cost Offer freemium products. Make products not services. So costs of offering free starts reducing. See pic above. To tackle free PoC problem – Achal my, co-founder & brother has created self-serve model. We are perfecting it. So focus goes to tech & driving cost low than expecting market to change.<\/strong><\/li>\n\n\n\n
    3. \u2060Offer free service<\/strong>s – At our startup we did for Automotive, acquired data to train model, built infra which grew 75% month-on-month. We could go to 200% MoM. We wanted to gather 7 million data points & have infra. To have best model. But couldn’t…that’s okay…still offered value, we also won<\/li>\n\n\n\n
    4. Earn Unique secrets the hard way, Share Secrets, Unique knowledge<\/strong> & let others win (if they wish) – That’s the value you generate. Costs almost nothing that you need to raise from VCs. But unique insights have the cost – you have to fail 100 times to create unique insights. It takes deep emotional toll.<\/strong> But you grow & learn 10x. We are ready to fail, learn secrets & let others win with our secrets. Just like I am doing by writing this blog.<\/li>\n\n\n\n
    5. When u give for free, u offer value first- it build trust<\/strong>. Many times – u don\u2019t get anything from other side.
      With tech make it low cost, but give more & more to ppl<\/li>\n\n\n\n
    6. Keep it raw, authentic & original – Don’t try to polish too much. Keep it low cost, raw. If it were to polish – then it loses authenticity. it’s like trying to say what others want to listen & not sharing ground reality. There’s whole world doing it.<\/li>\n\n\n\n
    7. \u2060It attracts top talent & micro eco system. That\u2019s the ultimate race. There\u2019s acute shortage.<\/li>\n\n\n\n
    8. Build communities – amplify, multiply knowledge. Diwakar, nipun & myself run All Bharat AI Association – to offer value first.<\/li>\n<\/ol>\n\n\n\n

      Summary:<\/h2>\n\n\n\n

      Create Value first, build trust & collabs. Keep the money at end. I can assure you things come back multiplied, if you stay long enough. This worked for always. Just focus on offering value, however little…offer what others offer paid.<\/p>\n\n\n\n

      To Make money, forget money first. <\/h3>\n\n\n\n

      Build Value, Offer Value, Stay long enough, Money will follow<\/h3>\n\n\n\n

      \ud83d\udc49 Read more blogs for use cases of AI<\/a> at our blog<\/strong><\/p>\n\n\n\n

      \ud83d\udc49 Read more for i<\/a>n<\/strong>vestors at our blog<\/strong><\/p>\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

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