Take a Break and...Generate

Generative AI

Hello, Kindred Spirits — and “01001000 01101001” to any AI-powered friends reading, too!

In this edition of our newsletter, we're delving into a topic that's as fascinating as it is pivotal in today's tech landscape: Generative AI. From creative breakthroughs to ethical conundrums, Generative AI is not just a tech buzzword; it's reshaping how we interact with technology, art, and even each other.

In exploring the implications of our new AI-powered era, we’d like to offer a new way to think about it, a fresh definition. What if AI was instead short for, “Alliance Innovation”?

The possibilities are endless. But one thing is clear: Generative AI is here to stay.

For now, we invite you to sit back, Take a Break, and let us guide you through what this could mean for the future of industries across the globe.

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At LionTree

Our recently published Generative AI Market Outlook offers a guide to the commercial adoption, dynamic market trends in financing and M&A, and the potentially transformative effects on industries like media and entertainment.

Some key takeaways:

• Pivoting Profit Centers: Shift of business models from infrastructure to application revenue, as enterprises move from prototyping to production

• Copilot Winners: Incumbents as the key beneficiaries of the Copilot business model in 2024, with AI-infused products driving the new wave of monetization

• Battle for Innovation: Models will need to continue differentiating and finding the right trade-offs between size and performance, attempting to evolve into closed ecosystems through marketplace offerings such as ChatGPT’s “app store”

• Data Rules: Access to proprietary data across specific industries and modalities as a moat and driver to increased vertical and specialized applications

• GenAI M&A Outlook: Increased M&A in 2024/2025 for GenAI startups building defensible businesses that are platform-based

To request access to LionTree’s Generative AI Market Outlook, click here!

In the News

• Will Chatbots Teach Your Children? [NYT]

• This Super Artificial Intelligence (AI) Stock Has Surged 20% in 2024 Already. Here's Why It Is Still a Screaming Buy. [Yahoo! Finance]

• Artificial intelligence helped scientists create a new type of battery [ScienceNews]

• OpenAI team to focus on democratic processes for artificial intelligence software [Reuters]

• Liberty Global CEO Mike Fries: AI will be a ‘game changer’ [CNBC]

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