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Why Every AI Startup Needs to Become a Consulting Firm
A couple of years ago, the playbook for AI startups was simple:
Build an API.
Wrap it in some branding.
Tell everyone to “plug it in” and watch the magic happen.
Fast forward to now, and that model is starting to look… limited.
Earlier this month, OpenAI quietly launched a new offering. But it wasn’t another model upgrade or developer tool.
They introduced a consulting arm.
A proper service, for $10M+ enterprise clients.
Not just tech — actual people, flying out to work onsite with large corporates and government organisations to help them implement AI.
It’s a big shift. And it says a lot about where we’re headed.
Big investors are buying this “unlisted” stock
When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs behind Uber and eBay also backed Pacaso. They made $110M+ in gross profit to date. They even reserved the Nasdaq ticker PCSO. Now, you can join, too.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.
Why consulting? Because enterprise AI is a mess.
It’s easy to think building the model is the hard part. But anyone who’s ever tried to sell AI into a large organisation knows: implementation is the real battle.
Corporates move slowly. They’re risk-averse. They have legacy systems, layers of approval, compliance issues, and politics.
So handing over an API key and hoping for adoption? That just doesn’t cut it anymore.
What OpenAI is doing now — embedding engineers into client teams, fine-tuning models, redesigning workflows — is exactly what these companies need.
It’s not glamorous. It doesn’t scale like SaaS.
But it works. And most importantly — it sticks.
I’ve seen the same trend from much smaller players too.
At one of our recent events, Chen Wang, CTO of Fifth Dimension AI, shared how they’re approaching this.
Their space is real estate — full of messy leases, outdated spreadsheets, and incredibly manual workflows. And like many AI teams, they started by building tools on top of existing models.
But it wasn’t enough.
Their clients didn’t just want AI suggestions. They wanted real outcomes:
“Help me process this data faster.”
“Show me which deals to prioritise.”
“Save me time and money — don’t just give me another dashboard.”
So Fifth Dimension built a platform that goes much deeper — integrating with client systems, automating specific tasks, and delivering actual business value.
They didn’t stop at the model.
They rebuilt the workflow.
This is where the bar is now.
The more I talk to founders and investors in this space, the clearer it becomes:
It’s no longer enough to just be “an AI company.”
Most models are starting to feel interchangeable — everyone’s building on similar foundations. GPT-4, Claude, open-source models… they’re all powerful in their own way.
But what will set you apart is:
✅ Who can integrate deeply
✅ Who understands the real-world use case
✅ Who can take something live and deliver results
And that’s rarely just a product play.
It’s about rolling up your sleeves and solving the full problem.
Big players are already going full-stack
OpenAI isn’t alone here.
Google has long been embedding teams through their cloud consulting division.
Palantir basically built their entire business model around deploying engineers to work side-by-side with clients.
And it wouldn’t be a surprise if Meta, Apple, or xAI follow the same route — or start acquiring companies that already know how to do enterprise AI delivery.
Why? Because there’s too much friction between “cool demo” and “real-world usage.”
Whoever can bridge that gap — wins.
So what does this mean for early-stage AI startups?
It means the game is changing.
Founders who want to win in B2B need to think bigger than a feature.
You need to own the outcome.
That might mean packaging your tech with:
Domain expertise
Custom integrations
High-touch support
Or even — yes — consulting
It’s not about becoming a services business forever.
But offering services now might be the fastest route to product-market fit, happy customers, and real revenue.
Consulting is not the goal — it’s the wedge.
Let’s be clear.
OpenAI didn’t wake up and decide they wanted to be Accenture.
They’re not doing this because they love client meetings and corporate politics.
They’re doing it because they want to control the full value chain — from model, to product, to actual business results.
Consulting is just a wedge.
It helps them learn faster, build better, and create stickier relationships.
And if it works for the biggest AI company in the world, maybe it’s worth considering in your go-to-market too.
Final thoughts
This shift won’t apply to every AI business. Some can (and should) stay product-led.
But if your goal is to serve enterprise clients — especially in complex, regulated industries — this move towards full-stack is not optional.
It’s expected.
OpenAI’s new arm shows us one thing clearly:
The future of AI isn’t just technical — it’s operational.
And if you can be the one who makes it all work for your clients —
you’ll be the one who wins.
✅ This isn’t hype — it’s the hard truth about selling AI to real companies. Send it to a founder who needs to hear it.
It’s time for a POLL (👉 Vote now — we’ll share the results in next week’s issue. All votes are anonymous)😀
AI startups that don’t offer consulting will fail. Agree or disagree?
INDUSTRY PULSE 🩺
(Last week’s poll results)
👉 If you’re not willing to work weekends as a founder, should you even be one?
RAFE FOUNDERS EVENTS ❤️
Rare Founders
Talk Your Way to a Term Sheet
This masterclass is for founders who want to speak with confidence, clarity and authenticity—especially when the stakes are high. Led by award-winning speaker and educator Dan Rosenberg, you’ll learn how to structure your message, handle tough questions, and stop sounding like a robot (or worse, ChatGPT). Whether you’re pitching investors, leading a team or showing up on podcasts, this will help you be more compelling and more yourself.
Special 20% discount for our paid members: join here to use it!
In-person event
Runway East Bloomsbury, 24-28 Bloomsbury Way, London, WC1A 2SN, UK
Fri 8 Aug, 09:30 - 14:30 BST
Rare Founders
Raise Smarter: VC Tactics Exposed
This masterclass with former VC turned founder Soma Pirityi will take you inside the investor’s mind and show you what really drives funding decisions. Drawing on his experience backing 50+ startups across the US and Europe, Soma will share the psychology behind investor trust, the common mistakes that cost founders equity, and the strategies that make teams stand out. Whether you’re raising for the first time or gearing up for your next round, you’ll walk away knowing how to position yourself and your team as the one investors can’t ignore.
Special 20% discount for our paid members: join here to use it!
In-person event
Runway East Bloomsbury, 24-28 Bloomsbury Way, London, WC1A 2SN, UK
Mon 18 Aug, 09:30 - 14:30 BST
Rare Founders
Open Mic Pitching and Networking - DEFENCE Special
A special edition of Rare Founders’ Open Mic & Networking Night focused on defence and dual-use startups. With billions in new defence spending and major innovation funding, we’ll dive into the latest trends with industry experts, followed by open mic pitching and high-energy networking.
In-person event
Blue Marlin Ibiza London, 45 Curtain Rd, London, EC2A 3PT, UK
Mon 18 Aug, 18:00 - 22:30 BST
Rare Founders
🇧🇪🇬🇧 Embassy Pitching Series: UK & Belgium
On 7 October, we’re teaming up with the Embassy of Belgium in London to host a special cross-border demo day. Expect 20-30 promising startups from Belgium (Flanders & Brussels) and the UK pitching to an audience of investors, followed by drinks, networking, and a DJ set.
Whether you want to pitch or just come along to meet founders and investors, the waitlist is now open.
🗓 Application deadline: Sep 5th 11:59PM
In-person event
Belgian Embassy Residence, 36 Belgrave Square, London, SW1X 8QB
Tue 7 Oct, 14:30 - 22:00 BST
OTHER LONDON EVENTS🌟
`
H*QUOTIENT
UK Dynamism Fireside Chat & Social
Join an evening event that spotlighting the industries shaping the UK’s resilience spanning aerospace, robotics, semiconductors, and AI. Through a fireside conversation with pioneering founders, attendees will explore how cutting-edge hardware and deep tech are driving national independence and innovation.
In-person event
10 Storey's Gate, London, SW1P 3AY, UK
Thu 7 Aug, 18:30 - 21:00 BST
The AI Collective
Collective Intelligence Workshop: The AI-Ready Executive
This session explores how executives can future-proof their careers by reskilling for an AI-driven workplace, using insights from hundreds of global case studies. It introduces a practical framework for becoming an AI-native leader no technical background required.
Online event
Thu 7 Aug, 19:30 - 20:30 BST
IDEALondon
Fail Friday
Join an event that brings together scientists, founders, and innovators to openly share and reflect on failures, setbacks, and the lessons they’ve learned. It celebrates the role of experimentation and risk-taking in driving meaningful discovery and real-world breakthroughs.
In-person event
69 Wilson St, London EC2A 2BB, UK
Fri 8 Aug, 18:00 - 21:00 BST
Techgames.xyz
Poker Tournament - Founder vs Funder Games' Edition
A high-stakes Texas Hold’em poker night brings together elite tech founders and funders for a curated showdown of instinct, nerve, and strategy. Part of a larger game series, this invite-only event puts the sharpest minds in tech head-to-head in a battle for glory at the final table.
In-person event
36 Britannia St, London, UK
Fri 8 Aug, 18:00 - 23:00 BST
Locals.org
Charity Padel Tournament: Founders, Investors, Changemakers
Join an exclusive charity padel tournament that brings together entrepreneurs, investors, creatives, and changemakers for an evening of sport, socialising, and impact. With a fun group-stage format and a cause-driven mission, it offers a unique chance to connect with inspiring people while supporting opportunities for young people.
In-person event
1 Circus Rd E, Nine Elms, London SW11 8DQ, UK
Fri 8 Aug, 19:30 - 22:30 BST
`
Founders Running Club
BrainStation x Founders Running Club
A community run in Shoreditch brings together founders, investors, and startup enthusiasts for a morning of movement, networking, and insights from fintech startup founders who’ve transitioned from corporate to entrepreneurial life. The event blends fitness, food, and founder stories in a relaxed and social setting.
In-person event
Curtain Rd Area, London, UK
Sat 9 Aug, 09:15 - 13:00 BST
Solana Run Club
Run Club
Join a relaxed 5K community run at a conversational pace, open to all fitness levels. Enjoy great company and stick around for coffee or drinks afterwards.
In-person event
Marble Arch, London, W2 2UH, UK
Sun 10 Aug, 10:00 - 11:00 BST
Go Places
Introducing TikTok Shops for VCs
This webinar offers a practical overview of how TikTok Shops can be leveraged as a serious sales channel, especially for consumer and niche brands. Tailored for investors and founders, it covers key strategies, common pitfalls, and real-world examples to help assess TikTok’s commercial potential beyond brand awareness.
Online event
Mon 11 Aug, 18:00 - 19:00 BST
Entrepreneurs First
Dinner with EF
An intimate dinner designed for ambitious, technical women early in their careers who are serious about launching a startup. The evening offers thoughtful discussion, connection with like-minded peers, and insight from those already on the founder journey.
In-person event
Hoxton Street Area, London, UK
Tue 12 Aug, 19:00 - 22:00 BST
Future Angels
Movement Of Women Investing In Innovation
Join this insider call that offers a chance to learn more about Future Angels and what to expect from the upcoming virtual angel investing programme. Attendees will meet the team, gain insights into the community, and get clarity on the next steps in the application process.
Online event
Wed 13 Aug, 11:00 - 12:00 BST
Founders Capital
FC Founder Dinner
An intimate dinner gathering for Series A+ founders to openly discuss challenges and gain peer support under Chatham House Rule. A three-course meal is provided, with a small ticket fee to encourage commitment and accountability.
In-person event
Bayham Street Area, London, UK
Wed 13 Aug, 18:30 - 22:00 BST
Granola
Design Engineering Nights
Join a gathering of top design engineering minds to share journeys, spotlight exceptional work, and learn from how others build. This event offers a space for design engineers to connect, grow, and celebrate their craft.
In-person event
Hoxton Street Area, London, UK
Thu 14 Aug, 18:00 - 20:30 BST
City Daze
Little Venice -> Coal Drops Yard
A mindful after-work walk through green spaces in London designed to spark connection and good conversation. The stroll ends with a relaxed social, inviting attendees to unwind and meet others.
In-person event
Warwick Ave, London, UK
Thu 14 Aug, 19:00 - 20:30 BST
PLUGGED
Open House & Golden Hour: Coworking + Sunset Rooftop Party
Join a vibey open house experience, where founders can co-work, get live feedback on their content, and unwind with rooftop sunsets, DJs, and BBQ. It's a space designed to spark collaboration and creativity among a like-minded founder community.
In-person event
Hoxton Area, London, UK
Fri 15 Aug, 10:00 - 20:30 BST
Tech Startups in the Pub
Relaxed Networking
A casual monthly meetup bringing together tech founders, entrepreneurs, and enthusiasts for relaxed networking over drinks. No panels, no pitching—just good conversations and community vibes in a laid-back pub setting.
In-person event
The Windmill, 27 Tabernacle St, Shoreditch, London, EC2A 4DE, UK
Fri 15 Aug, 18:00 - 19:00 BST
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Vasily Alekseenko
Founder
@ Rare Founders
Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.
