How to lose at Generative AI!

Interface > Data > Model: The “interface” and “data” layers will further distinguish market leaders while the “models” layer becomes increasingly commoditized and pushed to the edge. As a growing number of our everyday use-cases of powerful GenerativeAI models fall below the frontier of “the best models,” they will be enabled by cheaper commoditize... See more

Two ways for an AI company to protect itself from competition: (a) depend not just on AI but also deep domain knowledge about a particular field, (b) have a very close relationship with the end users.

The moats are in the customers, not the data. We predicted that the best generative AI companies could generate a sustainable competitive advantage through a data flywheel: more usage → more data → better model → more usage. While this is still somewhat true, especially in domains with very specialized and hard-to-get data, the “data moats” are on

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