This Week in GTM - 6/7/24

Make room for RAG: How Gen AI's balance of power is shifting‍

Users of Gen AI's large language models, especially enterprises, prioritize a balanced approach for rapid, accurate answers. Future neural net training for generative AI may closely integrate with RAG tools to enhance performance and accuracy. However, a March report by University of Maryland researchers found that GPT-3.5 can still fail even with data retrieved via RAG. RAG, Generative AI, and LLMs are advancing rapidly, making it exciting to both test these technologies internally and observe the latest developments in the field.

Getting infrastructure right for generative AI
‍CIO reported that according to IDC, generative AI (GenAI) workloads are increasing from 7.8% of the overall AI server market in 2022 to 36% in 2027. In storage, the curve is similar, with growth from 5.7% of AI storage in 2022 to 30.5% in 2027. IDC research finds roughly half of worldwide GenAI expenditures in 2024 will go toward digital infrastructure. IDC projects the worldwide infrastructure market (server and storage) for all kinds of AI will double from $28.1 billion in 2022 to $57 billion in 2027.

‍Want to build a company that lasts? Think three-layer cake‍

Jyoti Bansal, founder and CEO of Harness, a platform for automating software delivery processes, and Traceable, a security platform for modern applications, wrote a contributed article in Fast Company. He compares building a successful business to a three-layer cake: the base is a great product, essential for any company's success. On top of this, a solid go-to-market (GTM) strategy and operational excellence are needed. Each layer is crucial; without a great product, the company fails, and without strong GTM and operations, growth is stunted. Founders must focus on product-market fit while integrating effective sales and operations to scale successfully.

‍Read last week’s update.