AI Adoption: Unprecedented Speed of Change

Artificial intelligence (AI) is reshaping the technological landscape faster than any previous revolution, including mobile, social media, and cloud computing. A new report by venture capitalist Mary Meeker underscores the unprecedented pace of AI development, adoption, and investment.

Meeker's Report Highlights Unprecedented AI Growth

Mary Meeker, founder and general partner at Bond Capital and formerly known as the "Queen of the Internet," has released a comprehensive report titled "Trends - Artificial Intelligence." The report meticulously documents the unparalleled speed of AI adoption.

Key findings include:

  • ChatGPT reaching 800 million users in just 17 months.
  • Unprecedented growth in AI companies achieving high annual recurring revenue.
  • Rapid decline in AI usage costs, with inference costs dropping 99% in two years.
  • Rapid feature parity among competitors, including open-source and Chinese models, at a fraction of the cost.
  • Massive investments in AI infrastructure by major tech companies like Google and Amazon.

Meeker notes that while the cost of training AI models can reach up to $1 billion, the cost of using the technology has plummeted. She cites research from Stanford indicating a 99% decrease in inference costs per 1 million tokens over the past two years. This cost reduction is driven by advancements in hardware, such as Nvidia's Blackwell GPU, which uses significantly less energy than its predecessors.

"These aren't side projects — they're foundational bets," Meeker writes, referring to the substantial investments in AI infrastructure by major tech companies.

AI Investment Outpaces Returns

While venture capitalists are actively funding AI startups, the financial returns on these investments haven't yet matched the rapid pace of technological advancement. AI requires substantial infrastructure investments, leading to high expenditures for both AI companies and cloud service providers.

This dynamic benefits consumers and businesses through rapid improvements and lower costs due to competition. However, the long-term profitability of current AI companies remains uncertain. Meeker concludes, "Only time will tell which side of the money-making equation the current AI aspirants will land."

The rapid pace of AI development and adoption signifies a transformative period in technology. The long-term implications of this revolution are still unfolding, but its impact is undeniable.