About this AI game
We really have to question a few basic fundamentals again.
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The delta 4 theory. Will it still be feasible? As innovation is getting easier since everyone have access to intelligence but you need DISTRIBUTION since things are getting more commoditised and when you have commodity, you need high distribution. It’s the same example as.
Lets say even if I build the best biscuit of its time. But if no Kirana store or QC are not onboarding me then what’s the point?
- One sign that I have forgot from a long time is that. If you see the biggest companies in the world they have very high cash flow because of. Advertisement which is clearly distribution. Maybe I should rethink about innovation and how I should bet on innovation only but instead start a way of distribution too and what is my unique thing to build distribution? Now.
- This spectrum of making money in AI. Either you bet on hardware such as data centres/ Chips etc. where you make the money by selling the shovels in the gold rush or you use llm as a wrapper and sell it to corporates.
But you should really understand and think a lot of “who the hell will pay for your product and how do you reach to them” - this is just an important question to ask.
- There is also an interesting thing that I heard in the ken about llya talking about “how capitalism isn’t that important anymore since the scaling law won’t work anymore as the improvement in marginal now. And now we should deep dive on innovation to achieve this dream of AGI
- I also liked about how these llm: which is open ai, gemini, anthropic. None of them have any network effects or real moat. You can switch to anything and there is almost no clear difference between them.
- One more interesting thing is this concept of keiretsu (series) in Japanese where these Japanese companies invest in each other to minimise the risk and the same thing is happening with open ai, nvidia, Microsoft, amd etc
- Its also interesting how most of these use cases are only in pilot mode- this means that they are never getting deployed since most people are like, well why pay for this when chat got can do majority of this stuff.