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