application layer

“I have to believe it's gonna accrue mostly to the application layer. I think if you think about infrastructure companies as platforms, you know, if you think about the software market as the relatives, the value of AWS and Microsoft and Google cloud versus the…”

“A lot of the value that has been built in software over the last 20 years has actually been in the application layer that takes these breakthroughs and just verticalizes them for a specific use case or a specific customer demographic and monetizes them.”

“If you believe all of the value is going to aggregate in a very small number of underlying models and platforms, that may be correct, but I think what you're hearing here is there's a tremendous amount of excitement around application layer and point solution …”

“I focus on the application layer because I do think that's where a tremendous amount of value ends up being captured and created.”

“Foundation models, 90%. Application layer, 70%. And in the incumbents, the value going into the incumbents, only 20%.”

“If the analogy holds, as an investor, the odds of success are going to be significantly higher at the application layer because the diversity of needs there is greater.”

“Value is accruing beneath, like at the chip layer, because everyone is spending insane amounts of money on chips to build these models in the first place, and then above, at the application layer, where you see stuff like let's say ChatGPT, which is charged on…”

“I could build a software product in like two weeks. That would have taken me two years. So that's going to massively increase the pressure on the application layer.”

“And so I feel like building defensibility in the software layer On top of the models is going to be incredibly difficult. Whereas on the other side of things and the infrastructure side, it feels like there are meaningful moats that are getting built.”

“Because AI is moving so fast, I don't think the products are fully there yet. Like the enterprise products at the application layer don't exist in their entirety because we haven't been tested against the enterprise ask.”

“I think we're also now playing in a world where there will be a proliferation Of startups and apps at the application layer that are less capital intensive.”

“We absolutely are not going to move into application layer. Very clear to us.”

“If, like, inference is going to commoditize, then, of course, the next best thing is for the model providers to be moving up the application layer in order to own more of the application stack so that they ensure that they're not commoditized and they're getti…”

“I think that the application layer is going to be a much harder battle because being model locked is actually a huge disadvantage if you're trying to sell outcomes.”