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AI: The Coming Revolution

Nov 17, 2023 - coatue.com
Coatue, a firm that has invested in over 50 AI-related companies, believes AI is the next technology super cycle with the potential to significantly improve our world. The firm identifies key considerations for AI investment, including the potential of AI to improve our world, the importance of open-source in AI development, and the need to understand the new AI-centric tech stack. They highlight the increasing adoption of AI, with over 300K models shared on Hugging Face, 50% of trending GitHub repositories about AI, and over 8,000 AI apps created. They also note the importance of open-source in AI development, but caution that not all open-source is truly open.

Coatue emphasizes the need to understand the new AI-centric tech stack, including AI models, compute power and cloud platforms, developer tooling, and AI applications. They predict that AI will become more accessible, scalable, and useful, with natural languages becoming the top coding language. They also foresee challenges in AI development, such as solving AI model output hallucinations, enabling multi-modal use cases, reducing the cost of using AI, and making AI deployment easier and more secure. Despite these challenges, they remain optimistic about the future of AI and look forward to partnering with innovative founders in the AI space.

Key takeaways:

  • AI is the next technology super cycle with potential to significantly improve our world, with adoption moving faster than any previous technology revolution.
  • Open-source is at the core of the AI revolution, but not all open source is truly open, and some is even coming under attack.
  • Understanding the new AI-centric tech stack is crucial for builders and investors to add value in the new AI wave.
  • Despite the challenges and shortcomings of AI, Coatue is optimistic that AI innovators will unlock a new capacity to make AI useful for everyone.
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