Can You Start an AI Software Company with Just $100,000? A Cost and Revenue Breakdown

Embarking on the journey of launching an AI software company with a limited budget of 100k dollars may sound ambitious, but it is possible with the correct approach. However, there are important factors to consider when it comes to development, marketing, and growing the business. In this case, let us start with the cost of building an AI software company with this budget and look at possible business models.

Understanding the Initial Costs

As with any type of business, different upfront costs are associated with starting up an AI company and they will greatly eat into your budget. Here’s a detailed outline of the key expenditure components:

• Product Development: The Costs Associating with Product Development ($30,000 — $50,000) Developing an AI solution entails involving oneself in at least the purview of programming. Lesser the skills, the higher the cost would be because core development has to be done by the team. However, there are other ancillary costs that will require the help of a few developers to scale and polish the software.
• Core team: At least one AI/ML specialist and one backend developer.
  Tools and software: Spending on machine learning frameworks- note that there are cheaper options of…