From foundational models to AI in customer support, investor Elad Gil highlights which markets are already cornered — and which are still anyone’s game
A Rare, Unpredictable Boom in Tech
At TechCrunch Disrupt 2025, Elad Gil, a prolific solo VC investor, described AI as “one of the least predictable tech booms” he’s witnessed. Despite his extensive portfolio — which includes OpenAI, Mistral, Perplexity, Harvey, and Character.ai — he emphasized the chaotic pace of innovation.
- Gil began investing in generative AI in 2021, inspired by the leap in capabilities from GPT-2 to GPT-3.
- That leap signaled a major inflection point — one that made him confident the field would redefine the tech landscape.
“I used to say that the more I learned about AI, the less I knew,” he admitted — a rare confession in venture circles, where insight typically sharpens over time.
Where the Dust Is Settling: Clear Market Leaders
After years of volatility, Gil now sees certain AI markets consolidating around a few dominant players.
1. Foundational Models
These are no longer wide open. While many national efforts continue, the clear front-runners are:
- OpenAI, Anthropic, Google, Meta, xAI, and Mistral.
Smaller players may emerge, but “it’s like a handful,” Gil said of those likely to dominate.
2. AI-Assisted Coding
Another space with fast-emerging winners. Gil notes:
- OpenAI’s Codex, Anthropic’s Claude Code, and startups like Cursor (by Anysphere) and Devin (by Cognition) have pulled ahead.
- Magic and Poolside are chasing with funding and momentum, but the window for new entrants is closing fast.
3. Medical Transcription
The field has narrowed to a few strong contenders.
- Abridge is a leader, with Ambience also holding ground.
4. Customer Support AI
Long targeted by both old-school and next-gen AI players, customer support is now led by:
- Gil-backed Decagon (raised $131M at a $1.5B valuation),
- Sierra, founded by OpenAI Chairman Bret Taylor,
- Incumbents like Salesforce and HubSpot, which are rapidly embedding AI into their platforms.
Markets Still Wide Open for Innovation
Despite the growing number of closed-off categories, several major AI markets remain in flux, according to Gil.
1. Financial Tooling & Fintech
There’s clear demand, but no dominant player yet.
2. Accounting & Back Office Automation
Still “very interesting,” says Gil, but largely unsolved.
3. AI Security
A critical area given growing model misuse concerns — but still without standout winners.
These open fields represent multi-billion-dollar opportunities for founders and early investors.
Beware the False Signals of Fast Growth
Gil warns that early traction in AI can be misleading. Many startups are riding the wave of enterprise experimentation:
- CEOs across major industries are mandating AI initiatives.
- This has led to a surge of trial-phase adoption, especially by large enterprise customers.
- But not all this revenue is durable. Many companies are experimenting — not committing long-term.
“The market needs to go through a boom trial cycle before we know what’s real,” Gil said.
What’s Working: A Glimpse at Real Momentum
Gil highlighted legal AI startup Harvey as a model of real product-market fit:
- In 2025, Harvey raised three funding rounds, jumping from a $3B to $8B valuation in months.
- Gil noted that Harvey isn’t just growing — it’s “just working,” standing out in a noisy AI landscape.
Solo VC Elad Gil, a key investor in today’s leading AI companies, says several AI markets are consolidating — including foundational models, coding assistants, and customer support. Yet areas like fintech, AI security, and accounting remain wide open, offering major opportunities for new players.
