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Y Combinator co-founder Paul Graham argues big corporations' failure to profit from LLM tokens is a predictable adoption phase

Garry Tan says organizational skill gaps hamper corporate execution.

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Paul Graham@paulg#77inAI

If big companies can't make a net return on their LLM token costs, that doesn't mean it's impossible to. In fact this is exactly what you'd expect to happen with a new technology. Incumbents can't use it well, and are replaced by upstarts who can.

6:23 AM · Jun 5, 2026 · 72K Views
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Garry Tan@garrytan

Skill issues at big company means small new ones can eat their lunch

If big companies can't make a net return on their LLM token costs, that doesn't mean it's impossible to. In fact this is exactly what you'd expect to happen with a new technology. Incumbents can't use it well, and are replaced by upstarts who can.

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Y Combinator co-founder Paul Graham argues big corporations' failure to profit from LLM tokens is a predictable adoption phase · Digg