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The article analyzes the economic viability of consumer AI, focusing on revenue models beyond subscriptions and API tokens, while noting OpenAI's strategic shift toward enterprise sectors. It highlights emerging players like Suno and ElevenLabs that demonstrate staying power despite broader market skepticism about household adoption rates. This discussion centers on the structural challenges and opportunities within the consumer AI product landscape rather than general tech trends.

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a16z’s Olivia Moore on the state of consumer AI

TechCrunchOctober 9, 20264 min read

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…

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