According to Schmidt, whose own company has a market capitalization of nearly $500 billion, start-ups that manage to successfully "use the crowd to learn something" could be the next huge market opportunity.
He gave the example of someone going to different dermatologists and giving them $1 each to categorize skin samples to diagnose a dermatological problem. Schmidt said the data could then could be put into a machine learning system to categorize it, and then sell the finished product back to dermatologists.
"That model, which is you crowdsourcing information and you learn it and then you sell it is in my view a highly likely candidate for the next $100 billion corporations. I'm not suggesting that it'll be Alphabet, or Facebook or Uber, if I were starting a company I would start with that premise today," Schmidt told an audience at the Startup Grind Europe event in London on Wednesday.
"How can I use scalability and get my users to teach me? If my users teach me and I can sell ... a service which is better than their knowledge, it's a win for everybody."