Ep. 464: GenAI Is Largely an Infrastructure Play Today

Most of today’s GenAI economics is at the infrastructure layer – whether it be money paid for AI chips, or money invested in the development of large language models (LLMs) or money paid for the right to license LLMs for inclusion in various applications. However, we are not at the point where users are demanding that various applications incorporate GenAI such that GenAI functionality in the aggregate is generating billions of dollars of revenue. GenAI is largely a productivity enhancer at the application layer at this juncture.