GaryVee: Go All In on a Niche AI
In a recent talk, Gary Vaynerchuk urged builders to "go all in" on a niche application of AI before the market gets crowded. He argued the window for first-mover advantage is closing, advising against trying to build the next OpenAI and instead focusing on specific verticals like voice, video, or SaaS.
The "go niche" advice aligns with a significant shift in venture capital. In the second quarter of 2025, vertical AI startups in the US and Canada saw $17.4 billion in venture financing across 784 deals. These specialized companies represented 57% of all relevant funding rounds by volume, indicating a strong investor focus on industry-specific applications over general-purpose AI platforms. This trend is driven by the ability of vertical AI to automate complex, industry-specific tasks. For example, AI agents are being developed for healthcare to convert clinical conversations into structured medical records and for finance to automate compliance monitoring. In the legal sector, companies like EvenUp are using AI to automate tasks traditionally handled by associates, demonstrating how niche applications can increase efficiency. The Los Angeles startup scene reflects this vertical focus. Companies like Pictor Labs, which raised $48.8M for its AI-based pathology image analysis platform, and Jurny, which provides an AI-powered management platform for short-term rentals, are carving out specific market segments. Y Combinator has also funded several LA-based niche AI startups, including Merlin AI, an ERP for construction companies, and Scanbase, which provides an API for medical companies to analyze diagnostic tests. For computer science students, this signals a demand for skills beyond general model training. Job listings for AI/ML engineers in Los Angeles at companies like Apple and TikTok emphasize proficiency in Python, frameworks like PyTorch and TensorFlow, and experience with cloud-native AI/ML systems. There's a clear need for engineers who can apply these technologies to solve specific business problems in sectors like ad-tech, healthcare, and logistics.
