70 - There are Three Kinds of Businesses Forming with AI Right Now
AI is driving three key types of businesses: infrastructure, tools, and transformative innovations. In this episode, we explore how AI is enabling new possibilities and where the biggest opportunities lie for entrepreneurs and investors.
There Are Three Kinds of Businesses Forming with AI Right Now
Artificial intelligence is not just transforming industries—it’s shaping entirely new kinds of businesses. In this episode of Pattern Cognition, we break down the three key types of businesses emerging in the age of AI and why one category, in particular, presents an exciting opportunity for innovation and investment.
1. AI Infrastructure Businesses
These companies are building the backbone of AI itself. They develop the computing power, data pipelines, and foundational models that enable AI applications to function. Just as roads and power grids were essential for industrial revolutions of the past, AI infrastructure is what makes today’s AI revolution possible.
2. AI Tools and Platforms
Sitting atop the infrastructure are the tools that businesses and individuals use to integrate AI into their workflows. These range from AI-powered customer service bots to data analytics platforms. While many of these tools are useful, they primarily optimize existing tasks rather than create entirely new possibilities.
3. AI-Enabled Transformative Businesses
The most exciting category consists of businesses that AI has made possible—things that could not have existed before because they were either too costly, too complex, or technically impossible. Think of AI as the modern equivalent of a gold rush: while some are mining the gold and others are selling shovels, the real breakthrough lies in those creating entirely new applications that were once unfeasible.
This episode challenges listeners to think beyond the obvious AI trends and recognize where the most transformative opportunities lie. Whether you’re an entrepreneur, investor, or simply curious about the future of technology, understanding these three categories can help you navigate the evolving AI-driven landscape.
Tune in to explore how AI is shaping the next wave of business innovation.
Highlights:
00:00 Introduction to Transformative Businesses in the Age of AI
00:11 AI Infrastructure and Tools
00:14 The Exciting Third Bucket: New Capabilities
00:22 Analogy of the Gold Rush
00:39 Opportunities for Investment
Links:
Website: https://www.sidmofya.com/
LinkedIn: https://www.linkedin.com/in/sidmofya/
Transcript:
What is a transformative business in age of AI three kinds of businesses that are forming now, there's the AI infrastructure business and the certain kind of transformation that they do. And then there's the AI tools that are built on top of that. But what's really interesting to me is this third bucket, which are businesses that are enabling us.
To do things that we were not able to do. So if you think of it as a gold rush and there's the gold miners and there's the people selling shovels and buckets, and then there's the people that are making things that we couldn't make because before the gold was too expensive or too difficult to work with.
But now we have all these capabilities that we're able to do. And that kind of business really excites me to look out for investing.