I think it absolutely has. Certainly in developer tools, but you can see it in other tools like Hubspot, Gong, etc. Not to mention the enterprise organizations who are building their own features that use LLMs. Yes, we'll see some "enterprises" adopt their first LLM in 10 years because some move as slow as molasses. That's fine; there's companies who are tasting Cloud for the first time right now, but nobody is saying that Cloud adoption is still in its first phase. I think Sequoia sees this and decided the train is already starting to roll, so it's time to look towards what's next.

Technology always moves slower than what people think it will.

What always happens is that people let their imaginations run away, both with what the technology can do, and with how people will adopt it instantly in masse.

If everyone you know is using AI, you're living in a bubble. I have one friend who thinks everyone is using AI, and the rest of my friends have only touched it superficially.

Are there any examples of companies turning a GAAP profit using generative models that aren’t selling the shovels, but actually using them to dig?

Adobe is already incorporated genAI into core product and will start pricing for compute units. This is part of their core product, not a tool being sold to other people to build genAI products

I think that’s a great example of a company who is trying to make a profit, and they are certainly investing in the future under the assumption that it will pay off. But I don’t see how that’s currently profitable, which is the point brought up by GP about still very much being in Act One.

Shoving a gen ai tool into another tool doesn't really tell us anything about the market dynamics of the Gen ai stuff.

Probably. My company has seen a genai feature turn into increased product activation rates (the feature is 100% free), which correlates strongly with increased revenue.

Uh... everywhere?

I forget how far from industry HN can be sometimes.

Wow, thanks, I learned a lot from your examples.

You can generate advertisements at Google with GAI.

And frankly it probably never will.

Generative AI is not a platform unto itself. In order to effectively leverage fine-tuned models, you need your data to be somewhat organized in the first place. The average enterprise struggles enormously with this and always will.

In short, I would bet on endemic platform providers (Google, MS, Adobe, SAP, etc) rather than standalone AI providers (OpenAI, startups). Who owns the data? That is where the value lies.

The quieter it is, the more it can actually be happening.