Value within the artificial intelligence industry is slowly changing from the companies developing models to building apps above them.
Early in the AI race, critics viewed apps like confusion, Replica, Sesame, Appridge and other as second-rate intermediaries, knocking the interface to someone else’s technology. They were surprisingly known as AI rappers. A company where the entire app or company is wrapped in an existing model. Companies like Openai, Google, Meta Humanity has developed its own model.
The arrival of ultra-efficient models and increased commoditization of models accelerated the shift.
“The only way to compete in AI is to train these web-scale models in advance that can help raise hundreds of millions of dollars and solve all the problems under the sun, and it was the only game in the town of AI. “Very quickly, people actually realized that value moves up the stack.”
Mega cups like Microsoft Billions of dollars have been poured into the first stage of the AI arm race, focusing on infrastructure and model layers. However, models are becoming increasingly commercialized, narrowing down the benefits model builders have. While they focused on providing raw capabilities and intelligence, app companies looked at real-world use and solutions.
“The (rapper) means it’s not too thoughtful. It feels like you’re giving this little package for what’s built. In contrast to what it really means, “I’m going to understand the customer’s issues,” said Bryan Kim, partner at Andreessen Horowitz. “I’m going to marry this and provide you with a solution to what you’re trying to achieve.”
The rapper is in a time of atmosphere by changing the way Silicon Valley is building. Apps like Cursor allow anyone to develop apps without a degree or years of coding expertise as they are one of the fastest growing startups to date.
“Because I love the phrase vibe coding, and in fact I think it points to… in this new way of interacting with these systems, we don’t necessarily interrogate everything they’re ongoing.” “As time passes, as models improve and the products built on them improve, we’re going to get other kinds of atmosphere activity in the economy. So it’s an atmosphere slavery, an atmosphere of atmosphere, and we’ll trust the model more and more.”
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