20VC: Is Anthropic's Coding Business Worth $2 Trillion? | Should American Enterprises Work With Open-Source Chinese Models? | Why 80–90% of Neo-Labs Die in the Next 18 Months? with Eno Reyes, Co-Founder @ Factory

Your internal AI lab or "neo-lab" is likely set to fail. Most companies approach AI as a separate experiment, building isolated projects that never truly integrate with how the business makes money or operates. This strategy burns cash and delivers minimal real impact, leaving core systems untouched and your team without meaningful gains. You must embed AI directly into your operational systems, not just create a standalone innovation sandbox.

Eno Reyes, co-founder of Factory, highlighted this issue on 20VC. He predicts that 80-90% of these internal innovation groups will die within the next 18 months. Reyes argues their key flaw is building solutions too narrow or unable to integrate effectively with existing enterprise infrastructure. This inability to scale value confirms that isolated efforts are a dead end for achieving true business transformation.