Andreessen Horowitz Weighs in on Generative AI:
Venture capital firm Andreessen Horowitz asks Who Owns the Generative AI Platform? The rather lengthy article is focussed on the business aspects of the new technology.
They start by giving us a base, showing us what the stack looks like today, with some helpful diagrams. They report that hundreds of new startups are entering the market and that the technology is gaining traction. They say that the market is bullish on generative AI and believes it will have a major impact on the software industry. They focus on three categories already bringing in over one hundred million in revenue: image generation, copywriting, and code writing
Just as the makers of wheelbarrows and pick-axes were the big winners in the Gold Rush, the big winners right now are the providers of hardware that the models run on, such as NVIDIA, which reported $3.8 billion of data center GPU revenue in the third quarter of its last fiscal year. Much of that was from generative AI.
On the bad news side, generative AI companies struggle with retention and product differentiation, and model providers have not yet achieved large commercial scale. That should change soon.
This is only part of what the article covers (over 3,000 words), but it’s worth a read if you have the time