The competitive landscape is intense, and incumbents are reacting quickly. Last year, there were some overcrowded categories in the competitive landscape (particularly image generation and copywriting), but overall there were large gaps in the market. Today, many corners of the competitive landscape have more competition than opportunity. The rapid reaction of incumbents, from Google's Duet and Bard to Adobe's Firefly - and the willingness of incumbents to finally decide to take a "risk" - have increased competitive pressure. Even at the base model level, we are seeing customers setting up their infrastructure to be neutral between different vendors.
We predict that the best generative AI companies can generate sustainable competitive advantage through a data flywheel: more usage → more data → better models → more usage. While this is still true to south korea mobile database some extent, especially in areas with very specialized and hard-to-obtain data, the “data barrier” is in a precarious position: data generated by application companies does not create an insurmountable barrier, and the next generation of foundational models may well destroy any data barriers generated by startups. Instead, workflows and user networks appear to be creating more durable sources of competitive advantage.
Here’s what we did right:
Generative AI has become a reality. Suddenly, every developer is working on generative AI applications, and every enterprise buyer is demanding it . The market has even retained the name “Generative AI.” Talent and venture capital money are pouring into the market. Generative AI has even become a pop culture phenomenon in viral videos like “Harry Potter Balenciaga” or the Ghostwriter-penned parody of Drake’s song “Heart on My Sleeve,” which has become a No. 1 hit.