Excellent article and thanks for sharing Olga. The question most investors are grappling with is how much value has already been achieved along the AI value-chain and how much is left over the next 3-5 years?
Reading through the excellent book Chip War, there is an emphasising message that chips have always been critical to technological development going back many decades. But they have also always been a cyclical business and perhaps in the last number of years, people have forgotten or not fully priced in this cyclicality?
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Shane Jocelyn
Investment Analyst
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Original Message:
Sent: 24-04-2025 17:20
From: Olga Burenko
Subject: What is the AI Economy?
Hi Everyone!
In this article, I delve into the foundational question: What exactly constitutes the AI Economy?
- At its core, the AI economy reflects how value moves through the AI technology stack - from infrastructure to data and foundation models, to applications, and to developers and users.
- The AI economy operates as a layered value chain, with a broad and growing set of participants operating in three core layers: Infrastructure, Platforms and Applications.
- As we move up the stack, the number of players increases due to lower capital intensity and greater opportunity for differentiation.
- Apple currently stands out as the unique player vertically integrated across the entire AI stack, from custom chips to end-user distribution. But the AI race is still in its early stages.
You can read the full article here.
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Olga Burenko
Vice President, Investment Banking
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