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Interview

The AI Economy Is Stabilizing

Y CombinatorJared Friedman
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  • The AI economy is projected to stabilize by 2025 after a period of volatility involving startups, AI technologies, and the broader economy.
  • The market structure is forecast to settle into three distinct layers: model, application, and infrastructure, with expectations of significant profitability across all segments.
  • A standardized strategic playbook for building AI-native companies atop foundational models is anticipated to emerge alongside economic maturation.
  • Economic maturation this year is expected to follow incremental model improvements rather than major disruptive technological leaps that would alter the current landscape.