Who wins from the AI boom: A dive into the value chain
13 March 2024
Recent advances in 'Artificial Intelligence' have generated excitement, investment and improved valuations, on the plausible promise of greater efficiency in a range of areas, such as health and coding.
It is still not clear who will profit from this boom. Currently chip-maker NVIDIA is cleaning up, propelled by sales to model developers, also driving demand for cloud computing services.
Leverage in the AI value chain depends on differentiation and barriers to entry, which are high in the chips industry. AI services like chatbots have much lower barriers to entry, while deeper vertical integration of more stages of the value chain could shake things up.