LLM Winners: Incumbents, New Entrants, and Data Owners

As LLMs become more widespread, there are a few key groups of potential winners:

  • Incumbents with existing distribution networks: Companies like Google, Microsoft, and Amazon can layer LLMs into their existing products and services to enhance the user experience. For example, Google Search could use LLMs to provide more comprehensive and informative answers to user queries.
  • New companies that develop specialized LLM applications: There is an opportunity for new companies to develop specialized LLM applications that are tailored to the needs of specific industries or user groups. For example, a company could develop an LLM-powered tool to help writers generate blog posts or marketing copy.
  • Companies that own large amounts of data: LLMs require large amounts of data to train, so companies that own large datasets have a competitive advantage. For example, Google could use its massive dataset of text and code to train LLMs that are more powerful and versatile than those developed by companies with smaller datasets.

It is still too early to say definitively who will benefit most from LLMs. However, the three groups listed above are well-positioned to capitalize on the growing demand for LLM-powered products and services.