Companies Creating and Capturing Value in Generative AI

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Today on the AI Breakdown, we explore the question of which companies will dominate the value of generative AI. Martin Casado from A16Z asserts that AI has become truly transformative, with tech giants reaping most of the benefits so far. However, the rise of generative AI applications like chat GPT signals a new super cycle with significant improvements in time, cost, and performance. This is because accuracy isn't crucial for these applications; entertaining the user is. Moreover, these new experiences are uncharted territory, creating opportunities for innovative startups to evolve alongside users, while incumbents focus on their existing businesses.

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/ ABOUT THE AI BREAKDOWN The AI Breakdown helps you understand the most important news and discussions in AI. Subscribe to The AI Breakdown newsletter: https://theaibreakdown.beehiiv.com/subscribe Subscribe to The AI Breakdown on YouTube: https://www.youtube.com/@TheAIBreakdown Join the community: bit.ly/aibreakdown Learn more: http://breakdown.network/