This is an ongoing view that I keep espousing. Over time, it is one that is being substantiated by the ongoing actions of this involved in the AI world.
The future value of Leo is going to be based upon AI. Actually, it is likely that will apply to everything but we will keep it focused upon Leo.
When building a platform, it is not enoguh to focus upon social media features. Instead, AI services have to be rolled out. This is what we are seeing within Web 2.0 and it will apply equally to Web 3.0.
It is beneficial that Leo is already on top of this. Waiting will only put one further behind. The difference in value, even in the next few years, will be enormous.
Today we go news of a valuatoin that tells us what we are dealing with.
LeoAI: Valuation Capture
When talking about a small social media platform, the denomination is in millions. If we switch this to AI, it is likely going to be billions.
Here is a case in point:
Synthesia, a video platform that uses artificial intelligence to generate clips featuring multilingual human avatars, has raised $180 million in an investment round valuing the startup at $2.1 billion.
Notice how we have a start up that has a valuation of $2.1 billion. Obviously, it is possible that valuations get overinflated. Howeve,r htis was worth around $1 billion a year ago.
Another thing, notice the platform is one where AI generates clips for videos offering multilingual avatars. This is some of the power of AI.
This is a text-to-video platform that provides a twist with regards to the output. Of course, the ultimate value will come from the utility and integration that it provides.
That said, if progress continues, we are likely looking at something that will be worth $5-$10 billion. A succesful model in this realm could net some significant profits from the enterprise world.
Of course, you might be wondering how this applies to Leo?
To start, text-to-video is going to be offered on Leo. It might be a year or two away due to cost, but there will come a point when the prices drop so it can be added.
The second reason why this is important is to stress how value is generated from these servcies. Leo is not seeking to offer an isolated platform. Instead, the goal is to integrate as much into the platform as possible. This includes developing AI agents which is available to the user base.
From Trillions To Billions
The largest models will, in my estimation, carry valuations into the trillions. This will be reflected in the ultimate valuations of xAI, Anthropic, and OpenAI. In fact, OpenAI already reached $150 billion based upon its last round of funding. Along side of it is Anthropic, which is already at $60 billion.
Ultimate valuation will be based upon the applications that are tied to these models. The fact that many will be incorporated into robots (and cars) is one such example. These models are going to power a host industries.
As an aside, I read an article about a Chinese company that put a LLM in drones. These are some of the possibilities.
We can start at the top and work our way down. This is where the trillions become billions. Having a market capitalization of $1 billion is not going to be anything significant by the end of the decade. In fact, it is likely we see some indiviidual agents worth that.
My view with Leo is to look at it in totality. Having a platform with many different AI features built in will grow in value over time. The exponential nature of AI means that things will start to accelerate as more is added. Of course, this all starts with data and the ability to keep generating it, both synthetic and human.
Billion dollar valuations are going to be all over the place. The ability to accelerate economic productivity is mammoth due to AI. When output increases, we see larger gains made. This is especially true for the digital world.
At the core of this is the network effect. AI helps to kick that off since it multiplies so radically. This means numbers get a great deal bigger.
All of this feeds into the ultimate valuation of a platform. We see it with the big guys. For Leo, it is carving out a very valuable niche outside that sphere.