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Large models and finetuned derivative models will power the application layer

Large models are commoditizing AI capabilities. Companies providing productivity solutions are now able to adopt a combination of proprietary and thirdparty AI solutions. To achieve industry specific value creation a proprietary approach to finetuning derivative models (L2) and orchestrating tooling is required.

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Application layer

Orchestration

L2 – Finetuned models

Operating System

Software

L1 – Large models

Hardware layer

The industrialization of AI-capabilities is an exciting opportunity to create value at the application layer. Despite the justified hype around AI, entrepreneurs will have to be mindful that LLMs are redefining the nature of competitive moats.