The article also discusses the question of AI pricing, with insights from Amplitude and Appian. Amplitude CEO Spenser Skates suggests charging for new AI functionality but not for accelerated functionality. Appian CEO Matt Calkins proposes that companies can increase earnings from existing software products with AI without raising prices.
Key takeaways:
- Nvidia's strong quarterly results highlight the growing race to develop generative AI products, with the company exceeding earnings expectations and forecasting a strong future.
- Many tech companies are investing in hardware to train their own AI models, with Nvidia benefiting significantly from this trend.
- There is ongoing debate about how tech companies should charge for AI-powered software tools, with some companies, like Microsoft, offering paid add-ons, while others are incorporating new AI features into their existing software at no extra cost.
- Amplitude and Appian, both public software companies, provided insights on AI pricing, with Amplitude's CEO suggesting charging should be based on new functionality versus accelerated functionality, and Appian's CEO suggesting companies can earn more from their existing software products with AI without having to raise prices.