SemiAnalysis: Application layer captures more AI value than model labs
VibeMarketer_ · x · 2026-08-27
SemiAnalysis founder Dylan Patel argues that some companies will make significantly more money from AI than the labs building the models themselves. He notes that most of the value generated by these models does not go to OpenAI and Anthropic. For instance, Jane Street turns models into trading profits, and Meta uses them to improve ads, increasing engagement time by 5%. Patel asserts these companies are earning far more from using the models than the model makers are. The biggest business opportunity lies in connecting models to workflows, where even small improvements are worth millions.
Related event: SemiAnalysis Founder: AI Profits Flow Downstream, Not to OpenAI(2 posts)→
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