TLDR Tech / Founders
When the Models Get Better, Your TAM Should Go Up
It is crucial for AI-native businesses to ensure their Total Addressable Market (TAM) expands as AI models improve. Many AI businesses operate by filling the gap between current model capabilities and customer needs. Each new model iteration often reduces this gap, which can shrink the market. If an improved model negatively impacts your business, it suggests your strategy relies on a temporary capability gap.
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