An Innovation Cascade….

The Cutting-Edge Innovation Layer has historically been represented by expensive, institutional-level technology:

• 1940s: ENIAC at $7M ($100M+ adjusted)
• 1960s: IBM Mainframes at millions per unit
• 1970s: Early minicomputers at hundreds of thousands

Today this layer is represented by closed-source cloud AI (OpenAI, Anthropic) and is characterized by:

• Highest performance capabilities
• Highest operational costs
• Limited accessibility
• First-mover advantage in new capabilities

The Commercial Adaptation Layer has historical parallels in:

• 1980s: Business-grade minicomputers
• 1990s: Enterprise software solutions
• 2000s: Early cloud services

Today this layer is represented by open-source cloud AI (Llama, Mistral) and is characterized by:

• Slightly behind cutting edge
• More economical pricing
• Broader accessibility
• Proven technological approaches

The Mass Adoption Layer has historical examples including:

• 1990s: Personal computers
• 2000s: Open source software
• 2010s: Mobile computing

Today this layer is represented by local inference and is characterized by:

• Mature technology
• Minimal operational costs
• Universal accessibility
• Maximum deployment flexibility

A key historical pattern shows that technology inevitably flows from expensive/exclusive to affordable/accessible:

• Mainframes → Personal computers
• Private networks → Internet
• Premium software → Open source

Performance gaps between layers decrease over time:

• Example: Modern $300 smartphone exceeds 1990s supercomputer
• Example: Free Linux matches/exceeds commercial Unix

In the end state:

• Mass adoption layer typically ends up with the majority of capabilities
• Democratization of technology leads to greatest total impact
• Innovation cycle continues with new cutting-edge developments