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Hello readers,
Welcome to another edition of This Week in the Future! Sequoia Capital is sounding the alarm bell for the AI bubble, AI adoption is slowing down per Lucidworks, and AI is changing Silicon Valley’s attitude toward the Pentagon!
Generative AI Can’t Generate Revenue
After Goldman Sachs cast doubt on generative AI, Sequoia Capital is spoiling the fun even further in a piece titled AI’s $600B Question. $600 billion is the amount of revenue AI needs to generate to justify the infrastructure costs, which it’s nowhere near doing. Why? Because generative AI is not delivering enough value.
It’s not just Sequoia. Lucidworks just published The State of Generative AI in Global Business: 2024 Benchmark Report, which shows that generative AI adoption is slowing down. Only 63% of companies plan to increase AI investments. It was 93% in 2023. The reasons are unsurprising: cost, security, and unreliability.
Our Take
The AI hype is largely based on what AI might do in the future, so maybe we need to be more patient. Unfortunately, patience doesn’t pay the electricity bill. Generative AI has yet to meaningfully transform businesses because for now, it’s a tool, not a complete solution. We’ve always advocated that businesses really understand what they’re buying and identify where generative AI can actually make a difference.
🔥 Rapid Fire
OpenAI reportedly develops five-step roadmap to AGI
OpenAI and Los Alamos National Laboratory test GPT-4o in research
Microsoft and Apple give up observer seats on OpenAI board
AWS launches AWS App Studio, a text-to-enterprise-app generator
Scale and AWS partner to bring AI to enterprise and public sector
Deloitte launches data and AI accelerator program with AWS
AMD acquires Silo AI to expand enterprise AI solutions globally
Anthropic adds fine-tuning for Claude 3 Haiku on Amazon Bedrock
Oracle certifies Palantir’s Foundry on Oracle Cloud Infrastructure
MIT researchers introduce GenSQL, generative AI for databases
Google DeepMind publishes research paper on robot navigation
Research paper finds that AI agent benchmarks are misleading
The Washington Post debuts AI chatbot for climate information
Samsung adds new AI features to Galaxy phones and wearables
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📖 What We’re Reading
“Between 2022 and 2023, the military nearly tripled the amount of money it spent on AI, and in 2023, it announced Replicator, an initiative designed not only to get AI systems out of the lab and into the field en masse, but also establish the processes needed to ensure future tech innovations don’t succumb to the innovation valley of death.”
💻️ AI Tools and Platforms
Espresso AI → Snowflake optimization with AI
Sagetap → AI-powered vendor discovery
Tenyx → AI-powered voice agent
Abstra → Automation with Python and AI
Devv → AI search engine for developers
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