AI's first wave was about cutting costs. The second wave is about building things we've never seen.

People watch a surfer riding a wave in Praia do Norte, Nazare, Portugal.

PEDRO NUNES/REUTERS

• "Second Wave" startups use AI to generate fresh revenue sources.
• Inworld CEO Kylan Gibbs launched a startup accelerator focused on the Second Wave of AI.
• Startups such as Particle, Luvu, and Status aim to redefine media, fitness, and gaming.

For the past three years, AI has been mostly a cost-cutting tool. A growing number of founders and investors are trying to move beyond that era.