The AI market now stands at about $9 trillion, and enterprises I’ve only begun to explore its potential. Leading the way are AI chipmaker Nvidia, and model-maker OpenAI, ultimately competing against each other in the AI race. 

The latest State Of AI Report analysis, co-authored by AI investor Nathan Benaich and Alex Chalmers, platform lead at Air Street Capital, details some observations and predictions regarding the current state of AI and what the future may entail for the emerging technology

Predictions for AI in the coming year include the following:

• “An app or website created solely by someone with no coding ability will go viral (e.g. App Store Top 100).”  
• “Frontier labs implement meaningful changes to data collection practices after cases begin reaching trial.”
• “An open-source alternative to OpenAI o1 surpasses it across a range of reasoning benchmarks.”
• “Challengers fail to make any meaningful dent in NVIDIA’s market position.”
• “Strong results from Apple’s on-device research accelerates momentum around personal on-device AI.”

Benaich’s predictions from past reports have been mainly on target. Among a couple of the misses was a prediction that the “Gen AI scaling craze will see a group spend more than $1 billion to train a single large-scale model.” This hasn’t happened quite yet, which they admit, but “let’s give it another year.”