a16z’s Olivia Moore on the state of consumer AI

Moore sees a huge opportunity in consumer AI, particularly if the industry can tap into revenue streams beyond just subscriptions and API charges. I wrote this week about the bleak economics of consumer AI — but where some see a crisis, others see an opportunity. Olivia Moore covers consumer AI as a partner at Andreessen Horowitz — and on Monday, she released a report on the top 100 consumer AI apps. ChatGPT is still the biggest player by a mile, but smaller players like Suno and ElevenLabs are showing real staying power. Even more interesting is what we don’t see, as Moore’s report details half a dozen consumer categories that seem to be completely untouched by AI.

Moore sees a huge opportunity in consumer AI, particularly if the industry can tap into revenue streams beyond just subscriptions and API charges. On a call this week, I talked with her about the unusual economics of consumer AI and why it’s still early days for the category. It’s an interesting moment for a report about consumer AI, since we’ve seen OpenAI pivot back to enterprise this year. It’s inspired a lot of pessimism about the overall revenue picture for consumer AI, including from me. But I take it you’re more optimistic? I agree with you that OpenAI has moved back towards the