AI-centric businesses face scaling challenges and lower gross margins due to high compute usage and ongoing human support compared to traditional software firms
Andreessen Horowitz : Tweets: @a16z , @mihail_eric , and @raven_protocol Tweets: @a16z : AI may look like software. AI may replace software. But AI companies don't seem to be software companies as we know them. @martin_casado & Matt Bornstein explain how AI business may be part software, part services. https://a16z.com/... Mihail Eric / @mihail_eric : This is an incredibly insightful article about the reality of running AI businesses: https://a16z.com/... @a16z TLDR: Margins are lower than expected, scale is an issue, and building good moats is very hard. Raven Protocol / @raven_protocol : a16z gets it! We have been facing these exactly challenges while working with our pilot customers. Training a single AI model can cost hundreds of thousands of dollars (or more) in compute resources. Retraining is recognized as an ongoing cost, since the changes https://twitter.com/...