The AI Tech Stack

The AI Tech Stack
Photo by Gerard Siderius / Unsplash

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The AI Revolution is here, but it is just getting started. We are probably in the first inning of what will be one of the biggest technological shifts in history. Our best example of a technological Revolution of this scale is probably The Internet Revolution that took place in the late 1990s and early 2000s.

When the internet came along, a lot of people could see that it would change the world, but when the internet was in its very early stages (say 1995), it was hard to predict exactly where all of the value from the internet would accrue, and who would be the ultimate winners. Early winners included those who provided the infrastructure to support the internet and PCs, like Cisco, Intel, Sun Microsystems, etc. and also consumer-facing platforms like Yahoo and AOL. However, we know now that the ultimate winners of the Internet Revolution ended up being companies like Google (GOOG), Amazon (AMNZ), and Meta (META), and two of those companies (GOOG and META) did not even come public until well after the dot com bubble burst. Many of the dot com darlings that exploded in 1999 and 2000 ended up being total busts (Pets.com, Webvan, etc.), and yet it’s also ironic that the business models of Pets.com and Webvan ended up working out at much later dates. Chewy (CHWY) essentially does the same thing that Pets.com aspired to do and Instacart (CART), Uber Eats (UBER), and DoorDash (DASH) all make lots of money doing grocery delivery, which was what Webvan did.

The point is that it is very hard to see into the future to see which companies will benefit from a technological revolution as big as the internet or AI. Even if you can see that a certain business model might work (e.g. online pet food or grocery delivery) using this new technology, the timing or the execution might be wrong and you could still go bust.

Thus, what we have created below is what we are calling the AI Tech Stack. In this, we have attempted to identify all of the different layers of technology and businesses that support, utilize, or benefit from AI, from the company mining copper for wires that go in data centers to end products like Tesla’s Optimus Robot.