A Glimpse into the Generative AI Market
In an interesting episode of the AI + a16z podcast, a16z partners Guido Appenzeller and Matt Bornstein delve into the state of the generative AI market, which has seen significant growth since the release of ChatGPT about 18 months ago. The discussion ranges from the rise of potent open source LLMs to the buzz around AI-generated music.
Unpredictable Growth Patterns
While the AI market has made remarkable technological strides and companies are generating substantial revenue, it remains a fluid space. Bornstein observes a sawtooth pattern of growth for almost all AI applications and model providers. Rapid growth follows significant announcements, which then tends to flatten off over time. However, a new spike almost always follows periods of seeming stagnation.
Debunking Licensing Proprietary Data as a Moat
The conversation also tackles the issue of training data and whether licensing proprietary data could constitute a significant advantage. Appenzeller disagrees with this proposition, stating that the sheer volume of tokens needed for training makes licensing proprietary data practically infeasible. He adds that, since the Renaissance, knowledge has been publicly accessible and shared, and this principle continues to apply in the AI realm.
Looking Ahead
To gain more insights into the state of generative AI in 2024, listeners are advised to check out earlier episodes of the podcast, such as ‘Scoping the Enterprise LLM Market’ featuring Databricks VP of Generative AI Naveen Rao, and ‘Remaking the UI for AI’ featuring a16z General Partner Anjney Midha.
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