AI’s Unprecedented Acceleration: A Deep Dive into the Pace of Change
The rapid adoption of Artificial Intelligence (AI) is not just another technological wave; it’s a paradigm shift unlike anything witnessed before. According to venture capitalist Mary Meeker, the pace at which AI is being developed, adopted, and utilized is truly unprecedented.
Meeker’s recent 340-page slideshow report, titled “Trends — Artificial Intelligence,” emphasizes this point, using the word “unprecedented” a staggering 51 times. Backed by numerous charts and data points, the report illustrates the unparalleled speed of the AI revolution.
“The pace and scope of change related to the artificial intelligence technology evolution is indeed unprecedented, as supported by the data,” Meeker states in her comprehensive analysis.
As the founder and general partner at VC firm Bond, and formerly known as the “Queen of the Internet” for her annual Internet Trends reports, Meeker brings a wealth of experience to this subject. Her previous investments in tech giants like Facebook, Spotify, Ring, and Block (formerly Square) underscore her keen eye for identifying transformative technologies.
After a hiatus since 2019, Meeker has returned to document the AI boom, highlighting how its adoption has surpassed any other technology in history. The numbers speak for themselves: ChatGPT reached 800 million users in just 17 months, a feat never before seen. Similarly, the rapid growth and high annual recurring revenue rates of numerous AI companies are unprecedented.
One of the most remarkable aspects of this revolution is the declining cost of AI usage. While training AI models can cost up to $1 billion, inference costs – the expenses associated with using the technology – have plummeted by 99% over the past two years when calculating cost per 1 million tokens. This data is according to research from Stanford.
The fierce competition among AI developers is also contributing to rapid advancements. Competitors are quickly matching each other’s features, often at a fraction of the cost, thanks to open-source options and models developed in countries like China. Nvidia’s 2024 Blackwell GPU, for example, uses 105,000x less energy per token than its 2014 Kepler GPU predecessor.
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. These investments are not mere side projects but foundational bets on the future of AI.
However, the financial returns of AI haven’t yet caught up with its rapid growth. Venture capitalists are investing heavily, but AI companies and cloud service providers are also burning through significant amounts of cash due to the massive infrastructure investments required.
While this benefits consumers and enterprises through faster improvements and lower costs, the long-term profitability of current AI companies remains uncertain. As Meeker notes, “Only time will tell which side of the money-making equation the current AI aspirants will land.”
In conclusion, the AI revolution is happening faster than any technological shift in history. While the financial outcomes are still unfolding, the pace of innovation and adoption is undeniably unprecedented. Hold on tight – the ride has just begun.
