brainsteam.co.uk/brainsteam/content/annotations/2023/01/22/1674372715.md

date	hypothesis-meta	in-reply-to	tags	type	url
2023-01-22T07:31:55	created document flagged group hidden id links permissions tags target text updated uri user user_info 2023-01-22T07:31:55.232729+00:00 title Who Owns the Generative AI Platform? | Andreessen Horowitz false __world__ false 2K_fLpomEe2ZVWufTaYTPg html incontext json https://hypothes.is/a/2K_fLpomEe2ZVWufTaYTPg https://hyp.is/2K_fLpomEe2ZVWufTaYTPg/a16z.com/2023/01/19/who-owns-the-generative-ai-platform/ https://hypothes.is/api/annotations/2K_fLpomEe2ZVWufTaYTPg admin delete read update acct:ravenscroftj@hypothes.is acct:ravenscroftj@hypothes.is group:__world__ acct:ravenscroftj@hypothes.is AI generative ai startups selector source endContainer endOffset startContainer startOffset type /div[1]/div[1]/main[1]/div[1]/div[1]/article[1]/main[1]/div[1]/div[1]/div[1]/div[1]/p[5]/span[4] 104 /div[1]/div[1]/main[1]/div[1]/div[1]/article[1]/main[1]/div[1]/div[1]/div[1]/div[1]/p[5]/span[1] 0 RangeSelector end start type 10213 9651 TextPositionSelector exact prefix suffix type Over the last year, we’ve met with dozens of startup founders and operators in large companies who deal directly with generative AI. We’ve observed that infrastructure vendors are likely the biggest winners in this market so far, capturing the majority of dollars flowing through the stack. Application companies are growing topline revenues very quickly but often struggle with retention, product differentiation, and gross margins. And most model providers, though responsible for the very existence of this market, haven’t yet achieved large commercial scale. this market will value accrue? In other words, the companies c TextQuoteSelector https://a16z.com/2023/01/19/who-owns-the-generative-ai-platform/ Infrastructure vendors are laughing all the way to the bank because companies are dumping millions on GPUs. Meanwhile, the people building apps on top of these models are struggling. We've seen this sort of gold-rush before and infrastructure providers are selling the shovels. 2023-01-22T07:31:55.232729+00:00 https://a16z.com/2023/01/19/who-owns-the-generative-ai-platform/ acct:ravenscroftj@hypothes.is display_name James Ravenscroft	https://a16z.com/2023/01/19/who-owns-the-generative-ai-platform/	AI generative ai startups hypothesis	annotation	/annotations/2023/01/22/1674372715

Over the last year, we’ve met with dozens of startup founders and operators in large companies who deal directly with generative AI. We’ve observed that infrastructure vendors are likely the biggest winners in this market so far, capturing the majority of dollars flowing through the stack. Application companies are growing topline revenues very quickly but often struggle with retention, product differentiation, and gross margins. And most model providers, though responsible for the very existence of this market, haven’t yet achieved large commercial scale.

Infrastructure vendors are laughing all the way to the bank because companies are dumping millions on GPUs. Meanwhile, the people building apps on top of these models are struggling. We've seen this sort of gold-rush before and infrastructure providers are selling the shovels.