Andrew Yang bets on startups that lower the cost of living

Andrew Yang, an entrepreneur and former presidential candidate, is pivoting back to business with a thesis that the next wave of startup opportunity lies in lowering the cost of living. His latest venture, Noble Mobile, is a mobile virtual network operator—a wireless communications provider that does not own its own network infrastructure. Launched last September, the company provides cell service for a fraction of what traditional carriers charge. The startup has already grown to thousands of customers and is bringing in millions in revenue.

Yang argues that as artificial intelligence threatens to compress wages and displace workers, businesses that help people meet basic needs—including housing, education, food, fuel, transportation, media, and wireless—will become essential. He points to companies like Cost Plus Drugs (founded by Mark Cuban), Light Phone, and Misfits Markets as early examples of this emerging category. According to Yang, even small monthly savings can accumulate significantly over time. For example, saving a modest amount on cell service can compound over decades:

• Average monthly savings: $50
• Compounding period: 40 years
• Total amount saved: $24,000

Yang believes that meeting basic needs less expensively represents a rich vein of opportunity, arguing that there is room for a direct connection between money and the people. “AI is going to suck up a lot of the value and the jobs, and then Americans are going to look up and say, ‘How do I meet basic needs?’” said Yang, who previously advocated for Universal Basic Income during his 2020 presidential campaign. He notes that Noble Mobile is unit profitable—meaning it makes a profit on each individual customer—but shares those profits with subscribers to encourage retention and word-of-mouth growth.

However, scaling this model faces headwinds. Investors are heavily concentrated in AI, making consumer-facing businesses with thin margins a hard sell. Yang recalled that at least one unnamed investor told him they would love to work with him, but would only invest if he could make Noble Mobile an AI company. Despite this skepticism, Yang argues that concentrating wealth in the hands of a few firms is bad for everyone, and some individuals in Silicon Valley are beginning to recognize the risks. He encourages founders to think bigger and more broadly about tackling problems rather than subscribing to groupthink, as valuable opportunities exist outside the current trend.

Why it matters

Yang is challenging the Silicon Valley consensus by proposing a business category focused on reducing consumer costs rather than extracting value, testing whether market incentives can solve problems where policy has stalled.