Hyperscaler strategy in AI, the application landscape heats up, and what we know now about agents with Sarah and Elad
Apr 11, 2024
26:12
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Sarah and Elad dive into AI investing and technology trends, voice and video AI advancements, the Microsoft/Inflection deal, agentic systems, and prosumer applications. They discuss scaling in 2024, voice cloning, whitespace in AI, AI video landscape, and the impact of prosumer applications on AI development.
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Quick takeaways
The emergence of new advanced AI models like GPT-4 is reshaping the AI landscape and challenging previous monopolistic assumptions.
Hyperscalers and major tech companies are dominating AI foundation model investments, shifting funding away from traditional venture capital and emphasizing AI's strategic importance in cloud revenue generation.
Deep dives
Evolution of GPT-4 Level Models and Their Impact
The landscape of AI models is rapidly evolving with new GPT-4 level models emerging, some of which are expected to be open source. These advancements have shifted the model landscape significantly, deviating from prior expectations of monopolistic tendencies. The introduction of models like Databricks' DBRX and Cloud's mosaic law indicates a changing perspective on the capabilities achievable with relatively modest computing resources.
Market Dynamics and Value Shifts in AI Model Adoption
The emergence of cutting-edge AI models, potentially leading to an oligopolistic market in the near future, presents significant opportunities for enterprise applications. Beyond the dominant models, a diverse range of models and companies are entering the market, likely shifting value capture to cloud service providers who host these models. The commercial implications and revenue distribution within the AI model market, especially concerning cloud providers and model developers, remain crucial aspects.
Shift Towards Specialized Funding in AI Model Development
The investment landscape in AI foundation models reflects a trend where hyperscalers and major tech companies are primary funders, overshadowing traditional venture capital. The significant capital infusion into foundation models by big tech players emphasizes the strategic importance of AI in driving cloud revenue. While fewer new language models are expected, funding is diversifying into specialized areas like music, text-to-speech, video, image, gen physics, biology, material science, and robotics, indicating a broadening scope of AI model development and utilization.
This week on a host-only episode of No Priors, Sarah and Elad discuss the AI wave as compared to the internet wave, the current state of AI investing, the foundation model landscape, voice and video AI, advances in agentic systems, prosumer applications, and the Microsoft/Inflection deal.
Have a question for our next host-only episode or feedback for our team? Reach out to show@no-priors.com