© Reuters. Foundational AI model market experiencing shakeout event: Macquarie
Analysts at Macquarie told investors in a note this week that it looks like the foundational AI model market is experiencing a shakeout event.
The financial services firm noted that shakeouts “roiled” some foundational AI start-ups, and they expect more of this as the market attempts to match the pace of innovation.
“Between Inflection AI and Stability AI, it looks like the foundational AI model market is experiencing a shakeout event,” wrote the firm. “We expect to see more shakeouts as the market allocates capital amidst accelerated innovation.”
In its note titled the “Start of the AI start-up shakeout,” Macquarie also said Apple (NASDAQ:) partnering with Alphabet’s (NASDAQ:) Google understandably made headlines, “yet Apple has been researching local generative AI.”
“We think the iOS ecosystem will most likely use a mixture of centralized and local AI models,” they stated. Macquarie expects Gemini-class models to be used for complex, heavy-lifting reasoning tasks, while models deployed locally on Apple Neural Engine will handle day-to-day utility tasks.
