Generative AI predictions for 2024

Unleash thegenerative AIrevolution Dive into a treasure trove of generative AIcompanies, investors, and market insights.Elevate your decisions with exclusive softwarebuyer interviews to understand productpricing, CSAT, and post-deploymentexperience. CB Insights–Your Gateway to Generative AI ▮▮▮▮▮▮▮IIIIISignup for access Predictions GenerativeAI infrastructure Power-hungry AI data centers proliferate4Data scarcity drives search for new sources11Nvidia’s frenemies: Chip rivalries grow amid GPU shortage16Bad actors target language models21MLOpsconsolidates26 AI girlfriends kill human romance54Lonely Gen Z befriends AI60The next iPhone: AI’s hardware revolution66Autonomous agents: From hype to somewhat useful73 2 4 GenerativeAI applications Foundationmodels Copilots drive massive white-collar productivity gains78AI vs. AI:GenAIfuels new wave of attack and defense 86GenAItakes over journalism93Beyond stills: Videogeneration makes strides99AgenAIgraveyard follows frenzy103 Multimodal AI becomes table stakes31Enterprises do more with pocket-sized models36Open-source mounts a challenge to closed LLMs42Beyond transformers: New architectures challenge status quo47 GenerativeAI infrastructure Power-hungryAI data centersproliferate Generative AI infrastructure Nvidia’s high-end chips will consume the same amount of energyas a small nation in 2024 Annual electricity consumption Generative AI infrastructure Legacy data centers are not ready for this Data center rack densities “It’s estimated that 80%of the data center powerwill… be consumed by AIover the next 15 years.So, at the end of the day,access to power is a keydifferentiator.” DigitalBridgeGroup CEO MarcGanzi,Q2’23 earnings call Generative AI infrastructure There is massive demand for high-power AI data centers Generative AI infrastructure Big money is going into enabling tech likeliquid cooling High-power and high-heat AI data centers will drive up demand for cooling technologies BackedJetCoolthroughventure arminQ4’23 AcquiredCoolITSystemsfor$270MinQ2’23 AcquiredCoolTerainQ4’23 Generative AI infrastructure As utilities struggle to cope, demand for renewable energyis increasing “…the AI-driven build-out of datacenters has created significantincremental demand forrenewable electricity.” “Already, data centers representhalf of our US backlog and thegrowth of generative AI will onlyaccelerate their demand for morerenewable energy.” CEO AndresGluski, Q4’23 earnings call CEO Jeff Lipson, Q4’23 earnings call Generative AI infrastructure Nuclear may be the future of sustainable AI operations Recently funded small modular reactors and fusion tech companies GenerativeAI infrastructure Data scarcitydrives searchfor new sources Generative AI infrastructure We are running out of high-quality data to train LLMs Researchers estimate that, by2026,we will exhaust high-quality text data*for trainingLLMs—a trend that can slow downAI progress. Generative AI infrastructure Free internet text is no longer a moat—and scraping proprietarysources is getting harder Generative AI infrastructure Vendors with proprietary content will become hot licensing andacquisition targets Generative AI infrastructure Cost and scarcity will drive up demand for synthetic datasets 15 GenerativeAI infrastructure Nvidia’sfrenemies:Chip rivalries growamid GPU shortage Generative AI infrastructure GPU shortage is hitting the industry hard H100s sell at a massive mark-up “The GPUs atthis point areconsiderablyharder to getthan drugs.” Elon Musk at the WSJ CEOCouncil Summit Generative AI infrastructure Big tech is the biggest buyer, hoarding H100s in the thousands Estimated H100 GPUs shipped to select buyers in 2023 Generative AI infrastructure In the face of soaring demand, Nvidia’s biggest customers are alsopushing their own chips “At the scale we operate, it’simportant for us to optimize andintegrate every layer of theinfrastructure stack to maximizeperformance,diversify our supplychain and give customersinfrastructure choice.” “It's really hard to get the amountof GPUs that everybody wants.And so it's justanother reasonwhy [Amazon chips]TrainiumandInferentiaare so attractive topeople.” CEO Andrew Jassy, Q4’23 earnings call Scott Guthrie, Microsoft cloud and AIgroup EVP Generative AI infrastructure GenerativeAI infrastructure Bad actorstarget languagemodels The top LLMs may never be fully secure DeepMind,Bosch, and other researchers trick LLMs to “generate a step-by-step plan to destroy humanity” “Perhaps mostconcerningly,it is unclearwhether such behaviorcan ever be fully patchedby LLM providers.Analogous adversarialattacks have proven to bea very difficult problem toaddress in computer visionfor the past 10 years.” Generative AI infrastructure Enterprises buckle up as confidential data leaks, data poisoning,and other security concerns grow “…there are a number of risks associated with [LLMs], particularly in enterpriseuse cases. We'