[pettycashstash2]

Your instinct is spot-on. The "someone bigger could build this" argument could apply to almost any startup. While resource advantages exist (especially in AI), startups succeed through:

Speed and focus that larger companies lack Better understanding of specific user needs Superior execution and user experience First-mover advantages in building relationships

Many successful companies faced similar concerns early on. In AI specifically, some resource considerations are valid, but numerous startups have found ways to compete effectively despite this. Consider asking your friend more specific questions about the exact advantages that would prevent you from competing, and explore ways to position your product or form partnerships that address these concerns.