In 2024, OpenAI’s Sam Altman predicted the rise of the “$1B One-person company,” igniting discussions across the tech industry on the future of innovation. With the rapid advancements of AI-driven automation and no-code/low-code platforms, the idea of a solo entrepreneur developing, launching, and scaling a tech product without the need for a full-fledged team feels more plausible than ever.
The vision is intoxicating: A world where a single founder, equipped with the latest AI tools, would be in apposition to compete with traditional start-ups. No co-founders or even employees needed – just one person and a groundbreaking product. But is this the future of entrepreneurship, or just a fantasy fueled by technological optimism?
The viability question
At first glance, solo-founded start-ups seem most feasible in peer-to-peer (P2P) or an offering to small business spaces, where the complexity of scaling is relatively low. However, the picture shifts dramatically when looking at enterprise software or highly regulated industries like fintech, healthcare, or insurance. Here, compliance, security, and legal standards are formidable hurdles and often require teams of experts to navigate.
But even if a highly skilled solo entrepreneur successfully builds a powerful product, a fundamental question naturally arises: If the product is so easily developed with readily available tools, why should enterprises buy from a one-person company rather than build in-house?
Large corporations already have the capital, talent, and infrastructure to develop their own solutions. In a world where AI is democratizing development, differentiation becomes even harder. Without a strong competitive moat, solo founders risk being outpaced – or simply ignored – by industry giants.
The start-up dream: Exit or evolution?
The traditional start-up playbook often leads to high-profile acquisitions or IPOs. But if one-person companies become the norm, will the dream of a big exit fade?
Without a team or investor backing, the likelihood of a multimillion or billion-dollar acquisition shrinks. Instead, solo entrepreneurs may shift toward a self-sustaining business model, akin to the creator economy – but in tech. In this new landscape, success will be less about rapid scaling and VC funding, and more about monetization, brand building, and community-driven growth.
This raises a crucial shift in mindset: One-person start-ups won’t operate like traditional start-ups. Instead of chasing funding rounds and aggressive expansion, they’ll prioritize lean, automated, and niche-driven solutions.
What needs to happen for solo start-ups to succeed?
Currently, certain criteria should be met for billion-dollar one-person start-ups to become a reality:
They’ll thrive in low-regulation industries. Highly regulated sectors are far more difficult to navigate solo due to compliance demands – expect early successes in software tools, content creation, and niche SaaS platforms.
AI must handle more than development. For a true one-person start-up, AI must take over not just coding but also marketing, sales, finance, and customer support. A founder should be able to rely on AI to run a seamless, end-to-end business operation.
Solo start-ups will need to be highly automated and specialized. The most viable one-person companies will focus on niche, self-service solutions that require minimal user intervention, customization, or ongoing support.
Products that demand high-touch service, frequent updates, or complex implementation will be difficult to scale without a team. Instead, solo founders will find success with streamlined, low-complexity offerings that can run with minimal oversight.
The real challenge: It’s not development – it’s distribution
The barriers to starting a business are lower than ever, thanks to AI and automation. But starting isn’t the same as succeeding.
In a world where anyone can launch a tech business overnight, the hardest part for founders won’t be writing code or automating workflows. It will be differentiation, distribution, and go-to-market execution. AI may level the playing field in development, but customer trust, brand authority, and market positioning will remain human-driven advantages.
So, can a single entrepreneur build and sustain a billion-dollar company? Maybe. But one thing is clear: The path to success won’t look anything like the start-ups of the past.
The writer is head of Strategic Partnerships at UST Spark.