Value Capture 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