Applications beat innovation as VCs shift from research to practical tools.
Take the existing capabilities and apply them. Do we really need more innovation, or is it fine to say large language models are very good, you can chain them, combine them with traditional machine learning techniques, and build an application around it? I want more practicality, more tooling around it. The VC world actually sees that the appetite to go on risky, more researchy projects has gone down. VCs want more applications. Founders should focus on taking existing capabilities and applying them rather than pursuing foundational model innovation.
— AI Gold Rush: Is the Market Overheating? · The Edge