MarketsClassroom · multi-user
AI Startup Race — Compete for the Market
Every founder runs an AI startup in one shared market. Each round you set price, marketing, model tier and free tier; the market splits customers by who's most attractive. Live rivals teach what a scripted demand curve can't: competition compresses margins.
You’ll learn: Feel why competition compresses margins: pricing only wins share at the cost of margin, differentiation beats imitation, and your plan is only as good as your rival's counter-move.
- Market structure & competition
- Unit economics (MRR, churn, CAC)
- Inference cost as COGS
- Runway & dilution
Teacher guide
Students will learn to
- See how a shared market allocates customers by relative price, quality and marketing — not absolute effort.
- Live the margin-vs-quality trade-off: a better model tier wins share but burns more inference cash per user.
- Understand why undercutting a rival buys share only by giving up margin — and why price wars are hard to win.
- Learn that running out of cash means punitive dilution, so the final winner is ranked by owned equity, not raw revenue.
Before the session — ask
- If two startups sell the same product, what makes a customer pick one over the other?
- You could win more customers by cutting your price. What does that cost you?
- Why might spending everything on growth leave you worse off than a smaller, profitable rival?
After the session — discuss
- Whose margins got squeezed hardest over the rounds, and what move triggered it?
- Did the founder with the most users also keep the most equity? Why or why not?
- When did a shared market event (a price hike or demand wave) change everyone's best move at once?
- In real markets, when does competing on price work — and when does differentiation win instead?
Timing
- Briefing & the founder cockpit4–6 min
- Six to ten planning rounds18–25 min
- Podium & debrief8–10 min
Run it with your class
Students join with a code or QR — no account needed. Teachers start a session from the dashboard.