Why Big Companies Need Startups

Knowledge at Wharton

  • Jul 10, 2026
  • 1:11
  • Short

Big corporations and startups once operated in separate worlds. Today, some of the biggest innovations depend on them working together.

Wharton Professor Serguei Netessine explains why partnerships between large companies and startups have become essential, particularly as AI development requires enormous investment and constant innovation.

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Brief Summary

Corporations and startups increasingly collaborate for innovation, exemplified by partnerships like OpenAI with Microsoft.

Key points

  • The Evolution of Corporate-Startup Relationships. Once separate worlds, corporations and startups now rely on each other for innovation.

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