How Do AI Companies Make Money (Top 5 Methods)

Want to Start an AI based Startup Company ? But Confused about How do AI companies make money ?

In this article we will discuss about top 5 ways how AI companies make money. These are the days of AI where AI is starting their boom, everyone want to start and Artificial company but still it is not cleared How AI companies make money ? So let's discuss about Financial Model/Earning Model of an AI company.

Types of AI Startups

First of all let's go through type of AI startups. There are two types of AI Startups

Software Based AI Startup

Software based AI startups are the startups who develop AI softwares, either for general public (B2C) or Compaines/Businesses (B2B)

Some of software based AI startups are :

• OpenAI
• MidJourney
• WireSonic
• BardAI By Google
• LLaMA By Meta

Hardware Based AI Startup

We all are think that AI startups are only develop softwares and there are no hardware based AI startups but this is not true.

Hardware based startups create hardware chips to do things using artificial intelligence.

There are lot of hardware startups, i am listing some of them here :

• SambaNova
• Cerebras Systems
• Graphcore
• Lightmatter
• Groq
• Tenstorrent
• NUVIA

Must Read : Proven Ways to Make Money With Midjourney AI

How Do AI Companies Make Money (Business Model)

How Do AI Companies Make Money : There are different business models and money making strategies of artificial intelligence companies or any software company. Here i am going to list top 5 business models that any artificial intelligence company used to generate/make money.

Here you go :

Artificial Intelligence based Software as a Service Model (SAAS Business Model)

Software as a service model is an cloud based service model, where AI company develop their AI software and host it on cloud and they charge a fixed amount with different plans.

Artificial Intelligence based Platform as a Service Model (PAAS Business Model)

Platform as a service (PAAS) is also similar to SAAS but PAAS provider company develop their platform and host it on cloud and other AI companies uses that platform to develop, test & deploy their own ai application.

License Based Artificial Intelligence (License Business Model)

License based business model can be used for both hardware and software based artificial intelligence startups. Artificial intelligence startups creates their products and develop an licensing system for their product.

So they earn money by selling/renewing licenses of their products.

Artificial Intelligence Consultation Services

AI company also can provide consultation services to other companies who are looking for customisation, integration, custom implementation, training, support and maintenance services.

Artificial Intelligence Pay-as-you-go Model

Pay-as-you-go model is popular now days, In this model companies can charge based on the uses of resources and services.

Must Read : Most Popular AI Use Cases In The Business

I hope this article help you to understand the answer of 'How Do AI Companies Make Money'. Looking forward to your comments/suggestions on 'How Do AI Companies Make Money'.