Some of the biggest companies of the next decade won't be software businesses, they'll be services companies like insurance carriers, law firms, and tax practices rebuilt from scratch with AI doing most of the work. In this episode of Startup School, YC Visiting Partner Charlie Warren walks through the playbook for building AI native services companies, covering how to pick a market with the right traits, why variance kills these businesses faster than anything else, and the P&L math that’ll transform your business model.Chapters:00:00 — Intro to AI Services Companies01:01 — Picking the Right Market02:55 — Markets YC Likes Right Now03:43 — The Sam Altman Test04:35 — The Right Founding Team05:28 — Building the Product06:19 — Variance Is the Existential Problem07:08 — The Early Demand Trap07:53 — How to Price AI Services08:41 — The P&L Walkthrough09:33 — AI Operating Leverage10:27 — Don't Buy Your Way InApply to Y Combinator: ycombinator.com/applyWork↗ at a startup: ycombinator.com/jobs↗