Generative AI Opening up New Markets

Sequioa just published an article about AI. The article is a depth analysis of the current Generative AI space, with some predictions, found by extrapolating changes that occurred during the cloud and mobile transitions. At AINIRO we're for obvious reasons 100% in alignment with this way of thinking, since our experiences have taught us that this is a completely new axiom around which we will deliver our applications in the future.

Textbox, the new GUI

Look carefully at Sequioa's primary graphic taken from their article and notice the big white space.

White space in the market

The above white space is literally empty at this point in time, with millions of companies world wide trying their best to take a portion of it. Extrapolating data from the mobile and cloud transition, implies the market has a potential size of 350 billion annual dollars. This is before we start pondering AI agents becoming capable of replacing the entire "service market", which would scale it further up by at least a couple of orders of magnitudes.

However, SalesForce alone is worth roughly 234 billion US dollars. This is just one of the companies that Sequioa is using in their examples to illustrate the size of the cloud market. Then imagine adding 100+ additional companies into the same zone, for then to extrapolate this market size into the void currently needing to be filled in the AI space.

Like all such generational shifts, the titans in the old markets have huge problems following up. 15 years ago SalesForce was an agile company, with entrepreneural spirit, and could easily replace existing initiatives within their vertical by exploiting a new way of delivering software. While others were sending out CD roms with their software SalesForce sold usernames and passwords, and used the web to deliver their software. This allowed SalesForce to literally rug pull an entire vertical; Customer Relationship Management, AKA CRM.

Today SalesForce and the others in the space is on the other side of the equation. SalesForce and everybody else on the left side of the above graphic are the victims of that which they applied themselves to their competitors 20 years ago. SalesForce and all the others have spent 20 years building a graphical user interface (GUI) based upon the world wide web, but guess what, the GUI is now obsolete.

Everybody now wants to use natural language to interact with their apps

This implies that SalesForce and most of those apps on the left hand side of the above graphic is basically soon going to join the dinosaurs. And those replacing these companies are currently tiny startups being built in some garage somewhere, or home in some dude's living room. Too tiny to even be noticed today, but destined to become billion dollar companies 5 to 10 years down the road.

When people are digging for gold, sell shovels

Unless you've got a trillion dollars to spare, there's simply no way you can compete with OpenAI, Meta, and Anthropic. However, you can still bootstrap an extremely interesting company based upon using pre-existing LLMs. We would know, we're doing it. Building a company to fill parts of the void above the largest LLM vendors doesn't require anything besides a willingness to work like crazy.

We started AINIRO on $7, literally! That was the price for a single server at DigitalOcean 18 months ago. Today we're profitable with a growth curve of roughly 10 to 30 percent increased revenue per month. We never took VC money, we never took a second mortgage on our house, and we never spent as much as a single dollar we didn't first earn. We simply applied a lot of work, and CATCHING! Profits!

Using a P/E value of 1,000 evaluates AINIRO at roughly 350 million dollars. 15 years ago SalesForce was bought for a P/E at 1,000

This literally implies we created a company today worth 350 million US dollars with an "initial investment" of $7. Of course, such evaluations are meaningless for us, since I wouldn't give out a single share if you offered me a trillion dollars. AINIRO is my cashcow, and that's the way it stays!

Historical events

Such events as what we're experiencing today with GPT only occurs once in a generation, if that. The internet is probably the only thing that's comparable to the "GPT revolution" on the Richter scale. This means there are opportunities of unimaginable sizes currently unfolding as I write this.

It's easy to look at everything that's happening in the AI space today as over hyped rug pull schemes. And there's a lot of those out there - But that's missing the point. Generative AI has real value at its foundation. AI is not some new NFT rug pull scam. The AI revolution is real. Don't believe me? Go checkout SalesForce's primary landing page, and read it from the perspective of realising that Marc Benioff already knows he's done for.