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20VC: Benchmark's Sarah Tavel on Are Foundation Models Commoditising | Why Frontier Models Will Be Closed Source | Why the Value is in the Application Layer | The Future of AI is "Selling the Work" Not the Tools
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
Value Focus in the Application Layer
Focusing on the application layer is crucial as it enables companies to own the end user and continually provide more value, driving significant value creation. By concentrating on the application layer, where user ownership lies, companies can capture a substantial amount of value. This focus on the application layer is driven by the belief that it is where most of the value in the industry is generated over time, outpacing the infrastructure layer in terms of value creation potential.
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