State of Foundation Models 2025

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Generative AI has hit escape velocity and foundation models are at the center of the shift. In recent months, we’ve seen:

• 1 in 8 workers globally now using AI each month
• AI-native applications crossing into billions in annual revenue
• Models becoming 10x cheaper, faster, and more capable year over year - while often becoming obsolete within weeks

We’ve been digging deep into the technical, organizational, and economic shifts underpinning this moment and have produced a report and video presentation that snapshots where we are and where we think things are heading.

The report covers:

1. Setting the stage - what got us to where we are today
2. Models - Model research & trends at the model layer
3. Use Cases and Applications - A recap of the marquee foundation model use cases starting to break out
4. Building Foundation Model Products - Takeaways on building foundation-model based products
5. Market Structure and Dynamics - An overview of the venture landscape & economics behind FM companies
6. What’s Next? - Some observations on where things might go next as AI continues to develop
7. What We’re Excited To See Built - A call for some of the startups we’d like to see built

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If it sparks something, we’d love to hear what you’re working on!