AI value shifts from models to apps
“The foundation has been poured. And the next trillion dollars will be made building the city on top of it.”
Transcript
OpenAI is reportedly raising its next round at a $1.4 trillion valuation. And I don't think the valuation is really about the LLMs anymore. People need to start thinking about AI like real estate. The LLM is the foundation. And for the last few years, everyone has been obsessed with who could pour the
best foundation. OpenAI, anthropic Google, meta, XAI. And yes, having the best model still matters. But increasingly, LLMs are becoming a commodity. There are always going to be more great models. They're going to get cheaper. They're going to get faster.
And the performance gap between them is going to keep shrinking. So now the question becomes, what are you building on top of the foundation? And look at what OpenAI is doing. They launch Chatshupiti Health. They launch products specifically for financial services. They're building data products.
And now they launch dots. Always on agents that can actually work across applications for you. That's the building on top of the foundation. And eventually, I think we're going to have an entire city built on top of these models. Healthcare, finance, legal, coding, commerce, travel, enterprise software,
personal agents. And underneath all of it is intelligence. That's why I think the next phase of AI may be more interesting than simply asking, who has the smartest LLM? And the bigger question is, who owns the infrastructure, distribution, data, and applications on top of it? OpenAI already has massive distribution.
It's annualized revenue is reportedly approaching 70 billion. But now it's trying to turn that distribution into an ecosystem. The foundation has been poured. And the next trillion dollars will be made building the city on top of it. Every industry, every business model, there's a larger opportunity hiding
inside of it. I'm here to help you find them. Follow me for more tech and AI news.