Companies stop buying off-the-shelf AI, start building custom versions instead

Prime Intellect, a two-year-old startup, now earns $100 million yearly by helping large companies build their own specialized AI assistants instead of relying on generic ones. The company just raised $130 million at a $1 billion valuation, with backing from major hardware makers. One customer's custom assistant handled spreadsheets faster and cheaper than leading commercial models—a sign the industry is shifting.