While large language models are a game of scale, ElevenLabs argues that specialized AI domains like audio are won through architectural breakthroughs. The key is not massive compute but a small pool of elite researchers (estimated at 50-100 globally). This focus on talent and novel model design allows a smaller company to outperform tech giants.

In AI, low prototyping costs and customer uncertainty make the traditional research-first PM model obsolete. The new approach is to build a prototype quickly, show it to customers to discover possibilities, and then iterate based on their reactions, effectively building the solution before the problem is fully defined.

ElevenLabs' CEO sees their cutting-edge research as a temporary advantage—a 6-12 month head start. The real, long-term defensibility comes from using that time to build a superior product layer and a robust ecosystem of integrations, workflows, and brand. This strategy accepts model commoditization and focuses on building durable value on top of the technology.

Stripe's Experimental Projects Team discovered that embedding its members directly within existing product and infrastructure teams leads to higher success rates. These "embedded projects" are more likely to reach escape velocity and be successfully adopted by the business, contrasting with the common model of an isolated R&D or innovation lab.