Hamid: AI middleware is overinvested and its value will be fleeting
Mamoon Hamid · Mamoon Hamid: AI - Where Value Accrues, Startups vs Incumbents & Scaling Laws | E1217 · 20VC with Harry Stebbings · Oct 21, 2024 · at 13:21
Mamoon Hamid, General Partner at Kleiner Perkins, evaluates where venture capital is being misallocated in the AI software stack.
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“There's a lot of time being spent on a lot of the middle layer between the foundation models and the applications. And I think in the middle layers, middleware, things that allow you to use those models better, faster, cheaper and build applications on top. So if you think the application at the top of the pyramid, the foundation model at the bottom of the pyramid, Pyramid. In the middle, you've got middle layer. There's a lot of new technologies emerging that allowed it, for example, to capture vector databases or, you know weights for fine tuning of models inside of vector databases and things of that ilk. And there's just a lot going on there. At the same time, some of the value seems fleeting in nature. And so I think in early innings, when things are In such high degree of change, so the rate of change is so high, there's, there is a lot of that investing that happens, and I feel like perhaps it's all over invested.”
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