The Future of AI: OpenAI's New Economics for Scientific Discovery

Sam Altman's recent comments at Cisco's AI Summit have sparked a conversation about the future of AI and its potential impact on scientific discovery.

TL;DR
• Sam Altman explores new economics for AI-driven scientific discovery.
• OpenAI might consider sharing risk, not just selling compute, in domains like drug discovery and scientific research.
• Outcome-based pricing could be a new revenue model for AI platforms.

Summary
The future of AI-driven scientific discovery may involve a new economic model where AI providers share in the value created by their systems. Sam Altman, speaking at Cisco's AI Summit, suggested that OpenAI might consider selectively backing the outcomes produced by its models, particularly in resource-intensive areas like drug discovery and scientific research. This approach, dubbed 'value sharing,' would see OpenAI taking a cut of the value created when customers use its AI systems to make commercially valuable discoveries.

Key insights include:
• Shifting from traditional software pricing based on subscriptions or usage to outcome-based pricing.
• AI providers potentially sharing in the upside when their systems contribute to profitable discoveries.
• The need for new economic models to support AI-driven scientific discovery, particularly in areas requiring significant capital investment.
• OpenAI's potential role as an investor in certain AI-driven projects.

This new economic model could have significant implications for the development and deployment of AI systems, particularly in areas like drug discovery and scientific research. By sharing in the value created by its systems, OpenAI could be incentivized to invest in and support the development of new AI-driven projects.

The idea of value sharing raises questions about how AI platforms position themselves relative to customer value creation and whether intelligence providers should share in the upside when their systems materially contribute to profitable discoveries. As AI continues to evolve, it is likely that new economic models will emerge to support its development and deployment.

As AI continues to evolve, it's essential to consider the economic implications of its applications and the potential benefits and challenges of outcome-based pricing.