Jun 12, 2023 - Technology

AI's high growth no match for iPhone

Data: S&P Global; Chart: Axios Visuals
Data: S&P Global; Chart: Axios Visuals

Generative AI will experience explosive growth in coming years, but the cash the core technology generates for its inventors will pale in comparison to revenue from Big Tech's existing services and hardware, per a new S&P Global report.

Why it matters: Generative AI is blowing our minds and changing our jobs, but the companies driving that innovation will struggle to join the household name ranks of Apple, Google and Microsoft.

Be smart: AI providers will often be operating in less lucrative B2B markets, while consumer-facing companies rack up savings from using AI, and find ways to sell more profitable AI-powered services.

Yes, but: Generative AI's greatest impact is likely to be in its transformation of productivity and creativity in many businesses.

What they're saying: S&P Global predicts that foundation models will remain the largest source of income for generative AI providers, ahead of text generators.

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