These days, it feels like every startup is calling itself an AI company. But how they actually use AI? That varies—a lot.
Some companies are building brand-new foundational models from scratch. Think OpenAI with GPT, Anthropic with Claude, or DeepSeek with R1. These are the heavy lifters—the ones advancing the core technology.
Then there are companies that take those existing models and build on top of them—layering on features, automation, and better user experiences.
Take Cursor, for example. They integrate with GPT, Claude, and R1 to help developers write and improve their code. Or Notion, which uses Claude to help users summarize notes and refine their writing.
I recently asked Charlotte Tao—an exited founder and product expert in generative AI—how she thinks about what it really means to be an AI company. Here’s what she shared:
“One thing I wish I had known before starting my company is that success isn’t just about having the best AI technology. It’s about making sure customers are actually ready to adopt AI. Do they have the budget? Are they eager to replace painful manual processes? The strongest pitches highlight that now is the moment customers are ready to make this shift.”
Her point stuck with me: At the end of the day, it matters less how you’re using AI and more why.
AI by itself isn’t a value proposition. The real question is: Does AI unlock something fundamentally better for your customers?
AI companies aren’t just leveraging AI because it’s trendy—they’re solving urgent, real-world problems in ways that weren’t possible before.
Here’s the litmus test:
If you took the AI away, would the product still work?
If the answer is no—congrats, you’re an AI company.
Curious to hear your thoughts. How do you define an AI company?
Drop a comment below or share your own experiences.
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