On: Generative AI's Act Two

[callalex]

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?

[jerrygenser → callalex]

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

[callalex → jerrygenser]

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.

[__loam → jerrygenser]

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

[phillipcarter → callalex]

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.

[whimsicalism → callalex]

Uh... everywhere?

I forget how far from industry HN can be sometimes.

[callalex → whimsicalism]

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

[whimsicalism → callalex]

You can generate advertisements at Google with GAI.