Towards the second stage
Posted: Thu Feb 06, 2025 3:03 am
There is no doubt that despite the noise, hysteria and atmosphere of uncertainty and discontent, generative AI has already had a more successful start than SaaS , with over $1 billion in revenue from startups alone the SaaS market took years, not months, to reach the same scale. Some apps have become household names: ChatGPT has become the fastest growing app with strong market fit among students and developers; Midjourney has become our collective creative muse, reportedly achieving hundreds of millions of dollars in revenue with a team of just 11 people; and Character has popularized AI entertainment and companionship, creating the consumer “social” app we most desire—users spend an average of two hours in the app.
Still, these initial signs of success do not change the fact that many AI companies simply do not have product-market fit or sustainable competitive advantage, and that the over-exuberance of the entire AI ecosystem is unsustainable.
Now that the dust has settled a bit, we thought it would be dominican republic mobile database an appropriate time to do a larger reflection on generative AI — where we are today and where we might be headed in the future.
The first year of generative AI—Act 1—started from a technology-driven perspective. We found a new hammer—foundation models—and followed it with a series of novel applications that elegantly demonstrated this cool new technology.
We now believe the market is entering Act 2 - which will start with user needs. Act 2 will solve human problems end-to-end. These applications are different in nature from the first wave of applications. They tend to base models as a component of a more comprehensive solution rather than the entire solution. They introduce new editing interfaces, make workflows more sticky and output better. They tend to be multi-modal.
Still, these initial signs of success do not change the fact that many AI companies simply do not have product-market fit or sustainable competitive advantage, and that the over-exuberance of the entire AI ecosystem is unsustainable.
Now that the dust has settled a bit, we thought it would be dominican republic mobile database an appropriate time to do a larger reflection on generative AI — where we are today and where we might be headed in the future.
The first year of generative AI—Act 1—started from a technology-driven perspective. We found a new hammer—foundation models—and followed it with a series of novel applications that elegantly demonstrated this cool new technology.
We now believe the market is entering Act 2 - which will start with user needs. Act 2 will solve human problems end-to-end. These applications are different in nature from the first wave of applications. They tend to base models as a component of a more comprehensive solution rather than the entire solution. They introduce new editing interfaces, make workflows more sticky and output better. They tend to be multi-modal.