CEO of Perplexity, Aravind Srinivas, Shares Unusual Advice to Entrepreneurs: "Sleep With Apprehension That..."
In a recent talk at Y Combinator's AI Startup School, Perplexity CEO Aravind Srinivas shared his insights on the reality of protecting startup ideas, particularly those with the potential to generate significant revenue. Srinivas, a 31-year-old Indian computer scientist and entrepreneur, advised young entrepreneurs to expect their ideas to be copied, especially if they have the potential to make hundreds of millions or billions of dollars.
Srinivas explained that large tech firms, with their vast resources and motivation to justify massive capital expenditures, are often incentivized to replicate successful features. This dynamic is particularly pronounced in fast-moving sectors like AI and web search, as demonstrated by Perplexity’s own experience. After pioneering web-crawling for chatbots, similar features were rapidly adopted by OpenAI, Anthropic, and Google.
So, how can young entrepreneurs respond to this reality? Srinivas offered five pieces of advice:
1. Accept the Reality: Srinivas advises entrepreneurs to "live with that fear" of being copied, rather than being paralyzed by it. The mere expectation that your idea will be copied can help mentally and strategically prepare you for the competitive landscape.
2. Work Hard and Execute Well: Srinivas's initial advice to young entrepreneurs is blunt: "work incredibly hard". A superior product, rapid iteration, and a focused team can outpace even well-resourced competitors—at least for a time.
3. Focus on What You Can Control: Srinivas emphasizes the importance of intellectual humility and focusing on your core strengths. By playing to your own strengths and surrounding yourself with a strong, committed team, you can differentiate your company beyond just the initial idea.
4. Build Something Hard to Replicate: While no idea is immune from being copied, certain aspects—such as unique data, proprietary technology, brand, and community—can be harder for large companies to replicate quickly. Srinivas's own company, Perplexity, staked its claim by offering precise, consolidated answers based on real-time web searches, a feature that was not standard at the time of its launch.
5. Adapt and Innovate Continuously: The pace of technological change—especially in AI—means that startups must continuously adapt. Srinivas notes that "the human race has never been extremely fast at adapting," but those who stay at the forefront of technology will have an edge. Entrepreneurs should view adaptation not as a one-time effort, but as an ongoing process.
Srinivas's advice reflects a broader shift in Silicon Valley, where the value is increasingly in execution, not just ideas. Startups are advised to focus on building, refining, and defending their unique value proposition, rather than obsessing over secrecy. In a landscape where "100% of everybody's jobs will be changed" by AI, Srinivas suggests that the greatest opportunities lie with those who master new tools and drive innovation.
In essence, Srinivas encourages young entrepreneurs to "embrace competition, execute with urgency, and continuously innovate"—not just to protect their ideas, but to stay ahead in a rapidly evolving market. This pragmatic approach seems to be paying off for Perplexity, which recently released an answer engine with real-time web crawling, and is anticipating competition from OpenAI in the browser market.
In light of the reality that large tech firms may replicate successful features, particularly in fast-moving sectors like AI and web search, young entrepreneurs should build something hard to replicate, such as unique data, proprietary technology, brand, or community. Embracing competition, executing with urgency, and continuously innovating is crucial for staying ahead in a rapidly evolving business landscape driven by technology.
