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Gartner: GenAI Hardware Investment Far Exceeds Model and Platform Revenue
Gartner data shows that GenAI model revenue was $1.4 billion in 2023 and $5.7 billion in 2024 (a 320.4% increase), and is projected to be $2.83 billion in 2026, with growth having slowed markedly, far below OpenAI's approximately $25 billion and Anthropic's $47 billion ARR in May. The AI platform market is already larger than the model market itself, while revenue growth for vertical-domain specialized models is about twice that of general-purpose foundation models. Data center and hardware investment over the next two years will reach trillions of dollars.
AI model revenue was $1.4 billion in 2023 and $5.7 billion in 2024 (a 320.4% increase), and is projected to be $2.83 billion in 2026, with growth having slowed markedly, far below OpenAI's approximately $25 billion and Anthropic's $47 billion ARR in May. The AI platform market is already larger than the model market itself, while revenue growth for vertical-domain specialized models is about twice that of general-purpose foundation models. Data center and hardware investment over the next two ye
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DeepLearning.AI Weekly: GPT-5.6 Family Limited Release, Sakana Model Orchestration, and Microsoft's In-House Reasoning Model
The DeepLearning.AI weekly roundup covers several developments: OpenAI released three closed-source vision-language models, GPT-5.6 Sol, Terra, and Luna, currently available only to about 20 U.S. government-approved organizations, with prices ranging from $5 to $1 per million input tokens; OpenAI says it will expand access in the coming weeks. Sakana AI released Fugu and Fugu-Ultra, two models that orchestrate other models and agents, claiming they surpass Claude Fable 5, Claude Mythos Preview, and GPT-5.5 on benchmarks such as Terminal-Bench 2.1 and GPQA-Diamond. Microsoft launched MAI-Thinking-1, its first reasoning model not distilled or fine-tuned from another vendor, using a MoE architecture with 1 trillion total parameters and 35 billion activated per token, claiming it surpasses Claude Sonnet 4.6 with 97.0% on AIME 2025. The roundup also introduced RoboReward, a robot reward model from teams at Stanford and Berkeley.
The DeepLearning.AI weekly roundup covers several developments: OpenAI released three closed-source vision-language models, GPT-5.6 Sol, Terra, and Luna, currently available only to about 20 U.S. government-approved organizations, with prices ranging from $5 to $1 per million input tokens; OpenAI says it will expand access in the coming weeks. Sakana AI released Fugu and Fugu-Ultra, two models that orchestrate other models and agents, claiming they surpass Claude Fable 5, Claude Mythos Preview,
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Ethan Mollick: The chatbot era is ending, and work is shifting to managing agents
Ethan Mollick argues that, as the length of tasks AI can complete autonomously keeps lengthening, the mainstream usage is shifting from collaborating with chatbots to handing work over to agents. Citing benchmarks such as METR, the UK AI Safety Institute, and GDPval, he says capabilities are improving faster than exponential growth; Epoch found that Opus 4.7 worked autonomously for 14 hours to complete a software package that would originally have required 2-17 weeks of human engineering, at a cost of $251 in tokens. He also mentions that joint research by OpenAI and academics shows that within OpenAI, non-technical roles such as legal and HR are adopting agents at a pace close to that of programmers, with a quarter of employees running at least four agents simultaneously each week.
improving faster than exponential growth; Epoch found that Opus 4.7 worked autonomously for 14 hours to complete a software package that would originally have required 2-17 weeks of human engineering, at a cost of $251 in tokens. He also mentions that joint research by OpenAI and academics shows that within OpenAI, non-technical roles such as legal and HR are adopting agents at a pace close to that of programmers, with a quarter of employees running at least four agents simultaneously each week.
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