This chapter discusses the division of AI value capture between the application layer, infrastructure layer, and model layer, highlighting the adaptation of startups and incumbents, the dominance of big cloud platforms, and the emerging competition at the model layer led by OpenAI.
An exploration of defensibility, value capture and economic structure in artificial intelligence.
With excerpts from:
https://www.wsj.com/articles/ai-has-finally-become-transformative-humans-scale-language-model-6a67e641
https://a16z.com/2023/08/03/the-economic-case-for-generative-ai-and-foundation-models/
https://a16z.com/2023/01/19/who-owns-the-generative-ai-platform/
https://a16z.com/2023/08/11/cloud-lessons-for-the-ai-era/
https://a16z.com/2023/08/30/financial-opportunity-of-ai/
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