Big AI models will be commoditized — the value will come from the applications, Infosys chair says

Big AI models will be commoditized — the value will come from the applications, Infosys chair says


Infosys chair on the AI boom and the future of jobs

Massive artificial intelligence models built by the likes of OpenAI will eventually become commoditized with the next wave of value in the technology coming from the applications that are built on top of the models, the co-founder and chair of Infosys told CNBC on Tuesday.

Large language models are the AI models trained on amounts of data and they underpin applications like ChatGPT. Companies such as OpenAI and Meta are among the biggest players in this space.

Nandan Nilekani, co-founder of Infosys, said there are going to be many different LLMs around the world.

“There are many companies now coming up which are building India-specific LLM solutions for Indian languages … so I think what’s going to happen is that because AI is finally dependent on the data it is  trained on, every part of the world which has unique data will be required to do something about training the models for that data,” Nilekani told CNBC’s “Squaw Box Europe” on Tuesday.

“Ultimately, the models will become more commoditized and the value will switch to the application layer and the whole stack.”

Applications can be built on top of LLMs, and according to Nilekani, the next wave of value from AI will derive from those applications and other related technologies.

Infosys is one of India’s biggest technology companies offering outsourcing and consultancy services.

Discussing trends in AI, Nilekani said that the integration of AI into businesses, also known as enterprise AI, “is a longer cycle than consumer AI.”

“Consumer AI you can get up a chatbot and start working. Enterprise AI requires firms to reinvent themselves internally. So it’s a longer haul, but definitely it’s a huge thing happening right now,” Nilekani said.



Source

Recent inflation data was ‘bad news,’ Fed’s Goolsbee says
World

Recent inflation data was ‘bad news,’ Fed’s Goolsbee says

Austan Goolsbee, President and CEO, Federal Reserve Bank of Chicago speaks at The Capital Hilton during the 42nd annual National Association for Business Economics Economic Policy Conference on February 24, 2026 in Washington, DC. Luke Johnson | Getty Images Inflation data last week was “bad news” for the U.S. Federal Reserve and means the Fed […]

Read More
Global week ahead: Is ‘Sell in May’ just a myth?
World

Global week ahead: Is ‘Sell in May’ just a myth?

Futures-options traders work on the floor at the New York Stock Exchange’s NYSE American (AMEX) in New York City, U.S., April 17, 2026. Brendan McDermid | Reuters Conventional wisdom can be a stubborn force. As the trading month of May gets into full swing this week, should investors continue to follow the old adage of […]

Read More
Trump says the U.S. will reduce number of troops in Germany ‘a lot further’ than withdrawal of 5,000
World

Trump says the U.S. will reduce number of troops in Germany ‘a lot further’ than withdrawal of 5,000

U.S. President Donald Trump departs the White House in Washington, D.C., U.S., May 1, 2026. Kevin Lamarque | Reuters President Donald Trump said Saturday the U.S. will significantly reduce its troop presence in Germany, escalating a dispute with Chancellor Friedrich Merz as he seeks to scale back America’s commitment to European security. The Pentagon on […]

Read More