Gerstner claims AI delivers 30 to 50 percent productivity gains to engineers, unprecedented in technology history.
“If you think about what AI is already doing for the enterprise, we're seeing 30 to 50% productivity improvements in engineers. There's never been a technology history of technology.”
Gerstner reports data company lamenting OpenAI sets pricing umbrella with no margin floor for models.
“I was talking to a large data company this week who's in the business of serving models, they were lamenting the fact that the pricing umbrella was set by OpenAI and there is no price, right? So that it's a much lower margin business than the traditional software business.”
Corporate buyers are increasingly choosing open-source AI models over proprietary ones to avoid vendor lock-in with their data.
“It's not that frontier models are dead; it's that open-source models are surging in interest from corporate America and startups -- because people don't want to give their intelligence to private companies.”