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AI Value Chain — Explained!
A deep dive into important stakeholders in the AI Value Chain
In this article, we will identify the various stakeholders in the AI value chain and their respective strengths and weaknesses.
In the entire AI value chain, there are five important stakeholders. Let’s deep dive into them one by one:
AI Labs
The most visible companies in the AI boom are the labs working on training their models, shipping conversational interfaces for users and cracking enterprise / individual deals to earn revenues.
The success of these players depends upon three important things:
- The model and its capability to perform tasks, as compared to its peers
- Distribution network, i.e. how many users can be acquired by these AI labs
- The very demand of AI itself
Running a business for AI labs is extremely capital-intensive. Developing a new-generation model can cost hundreds of millions, and running it daily requires constant use of large clusters of advanced GPUs within specialised data centres. At the present stage, there is a stark difference between the revenue generated and the capital deployed. For example, Anthropic is expected to earn a revenue of $2.2bn and burn capital…
