Value Capture in AI

Who will capture value in AI

With things moving at rapid pace in AI, the question in everyone's mind is who will be capturing value? Here's my take.

Value capture 1 — Model as a service: 

— Enterprise versions of opensource models (like Mongo DB)

— Closed source models like Open AI

Value Capture 2 — Model hosts as a service

— Azure, GCP & AWS will let you host any models you bring with couple of clicks

— hosts will share revenue with model owners

Value Capture 3 — Application Layer — Status Quo 

— Existing Apps use AI to enhance functionality. This is the category that's making news.

— From Notion, Microsoft, Adobe, Canva, Replit every successful application will embed AI and enhance their functionality.

Value Capture 4 — Application Layer — New Status Quo

— New apps that we don't imagine yet, and do things that existing apps don't.

— The poster child for this is chatGPT.

— Opportunity for startups to rethink apps fundamentally


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