The Economics of Generative AI
The Economics of Generative AIThe Semi layer makes ~90% of all Gen AI profits today! Where does future value accrue and how do we get there? Apoorv AgrawalApr 25, 20243521349Share#1 Where has value accrued in Gen AI so far?It’s been 18 months since the “iPhone moment of AI”1 but the pace of developments has not slowed down.
- ▪The Economics of Generative AIThe Semi layer makes ~90% of all Gen AI profits today!
- ▪Where does future value accrue and how do we get there?
- ▪Apoorv AgrawalApr 25, 20243521349Share#1 Where has value accrued in Gen AI so far?It’s been 18 months since the “iPhone moment of AI”1 but the pace of developments has not slowed down.
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Story provenance
Attribution is not the same as permission. This drawer separates discovery metadata, excerpts, WeSearch-generated summaries, reuse status, and whether the publisher receives the visit. Nothing here claims a legal grant the publisher has not made.
Record
| Original publisher | Hacker News (AI / LLM) |
| Canonical URL | https://tailwinds.substack.com/p/the-economics-of-generative-ai |
| Publication time | Mon, 14 Sep 2026 18:09:04 +0000 |
| Retrieval time | 2026-09-14T18:11:52.226Z |
| Last seen | 2026-09-14T18:11:52.226Z |
| Headline source | Publisher (no WeSearch rewrite) |
| Excerpt source | publisher body |
| Excerpt method | First ~120 words (~800 chars) of extracted publisher body, fair-use limited. |
| Summary | WeSearch · cerebras-chat (WeSearch summarizer) |
| Summary source text | contentText |
| Citation coverage | Summary is a WeSearch-generated derivative; primary citation is the original publisher URL. |
| Cluster | None |
| Cluster logic | Not yet clustered, or no peer story found in the clustering window. |
| Ranking reason | Story pages are not engagement-ranked. Hub feeds use recency, with optional source-diversified chronological ordering (cap consecutive stories per source). No personalized ranking. |
| Publisher visit | Yes — open original |
| Substitutes article? | No — link-out required for full text |
Rights status (four layers)
WeSearch handling by dimension
| Indexing | May the item be indexed (stored, ranked, made findable)? | Allowed |
| Snippet | May a short excerpt of the publisher's text be shown? | Allowed |
| AI summary | May WeSearch generate its own short summary of the article? | Limited |
| Retrieval / RAG | May the content be exposed for third-party retrieval-augmented generation? | Not asserted |
| Model training | May the content be used to train AI models? | Not asserted |
| Commercial reuse | May the content be reused commercially? | Not permitted |
Basis: Derived from the published RSS/Atom feed. Contact: [email protected]. Reviewed: 2026-07-24.
Opening excerpt (first ~120 words) tap to expand
The Economics of Generative AIThe Semi layer makes ~90% of all Gen AI profits today! Where does future value accrue and how do we get there? Apoorv AgrawalApr 25, 20243521349Share#1 Where has value accrued in Gen AI so far?It’s been 18 months since the “iPhone moment of AI”1 but the pace of developments has not slowed down. One of the biggest questions I’ve been thinking about is where does value accrue in Gen AI - today and in the future. Today, the Gen AI stack seems to be A-shaped vs V-shaped for cloud2: Thanks for reading Apoorv’s notes! Subscribe for free to receive new posts and support my work.SubscribeI split the stack into three layers - semis, infra and applications.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Hacker News (AI / LLM).
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