AI’s Unprecedented Acceleration: A Deep Dive into Rapid Adoption and Change
The rapid adoption of Artificial Intelligence (AI) is not just a feeling; it’s a verifiable phenomenon outpacing previous tech revolutions like mobile, social, and cloud computing. According to a recent 340-page slideshow report by venture capitalist Mary Meeker, the speed at which AI is being developed, adopted, and utilized is “unprecedented,” a term used 51 times throughout the detailed analysis.
Meeker, founder and general partner at VC firm Bond and formerly known as the “Queen of the Internet” for her influential Internet Trends reports, has returned to document AI’s transformative pace. Her report, titled “Trends — Artificial Intelligence,” emphasizes the unparalleled speed of AI adoption compared to any other technology in history.
The report highlights several key indicators of AI’s rapid growth. ChatGPT, for example, reached 800 million users in just 17 months, a milestone previously unheard of. Similarly, numerous companies are achieving high annual recurring revenue (ARR) rates at an unprecedented pace, showcasing the swift commercialization of AI technologies.
One of the most striking aspects of AI’s acceleration is the dramatic decrease in usage costs. While training AI models can cost up to $1 billion, inference costs—the expenses associated with using the technology—have plummeted by 99% over two years when calculated per 1 million tokens. This data comes from research conducted by Stanford University, highlighting the increasing affordability and accessibility of AI.
Competition among AI developers is also intensifying, with competitors rapidly matching each other’s features at lower costs. Open-source options and models from China are contributing to this dynamic. For example, Nvidia’s 2024 Blackwell GPU consumes 105,000 times less energy per token than its 2014 Kepler GPU, demonstrating significant advancements in efficiency.
Tech giants like Google and Amazon are heavily investing in AI-specific hardware, such as Google’s TPU (tensor processing unit) and Amazon’s Trainium chips, for their cloud services. These are not merely side projects but foundational investments aimed at driving future growth and innovation in the AI space.
Despite the rapid advancements and adoption rates, AI’s financial returns haven’t yet matched its technological progress. Venture capitalists are investing heavily in AI, but AI companies and cloud service providers are also burning through significant cash due to the massive infrastructure investments required. The long-term profitability of these ventures remains uncertain, with Meeker noting that “only time will tell which side of the money-making equation the current AI aspirants will land.”
For consumers and enterprises, the rapid improvements and decreasing costs are undeniably beneficial. However, the ultimate success and financial viability of the companies driving this AI revolution are still to be determined. As Meeker concludes, it’s a period of unprecedented change, and we should all be prepared for the ride.
