The market opportunity for #AI is enormous - $10-15 Tr.
These marketplaces will help companies to subscribe to an AI model store and streamline the process of consuming and managing AI models without the need to create and maintain them internally.
🎯 NFX has a great explanation how API and application layers will work in 5-Layer Generative Tech Stack:
Layers 1-3 will be General, Specific and Hyperlocal AI models that build on top of each other.
4. OS or API layer
This is the layer that sits between the workflow applications and the AI models below. I might have an application for making an ecommerce website. Several different people need to use that application. They each need different models for doing their role. This API layer or Generative OS helps that application access all the AI models the application needs. This layer also allows for the AI models to be switched out at will. Which of course tends to commodify them.
This layer eases interoperability of the applications and workflows. It helps keep track of identity, payments, legal issues, terms of service, storage, etc. It helps the application developers try more features faster and get them up and running faster. For the end user, it removes hassle from the AI models below and the application vendors above. This layer should have powerful network effects and embedding characteristics.
5. Applications layer
These applications are interfaces where humans and machines collaborate. These are the workflow tools that make the AI models accessible in a way that enables business customers or consumer entertainment.
In this layer it’s easy to envision network effects or embedding defensibilities.
There will be 10,000’s of these applications built for various needs in the next 2 years. Incumbent software providers will add generative features. New companies will create competitors to the old, emphasizing generative as a wedge. New companies will create brand new applications people will use with generative AI as a starting point.
Source: NFX AI stack breakdown