Concepts / AI Engineering: Building Applications on Readily Available Models

AI Engineering: Building Applications on Readily Available Models

A foundation model is a large-scale AI model developed by a few organizations and made available for others to use as a service.

  • Programming

Why Scale Changed the Field

Imagine describing the state of artificial intelligence after 2020 in a single word. A strong candidate is scale. The AI models behind widely used products such as ChatGPT, Google's Gemini, and Midjourney are large enough that they consume a meaningful share of the world's electricity, and their developers face the possibility of running short of publicly available internet data for training.

Scale matters to anyone who builds software because it changes two things at once. Models become more capable and can handle a wider range of tasks, which opens up more applications. At the same time, the effort needed to train such models is concentrated in a small number of organizations. The rest of the field has to decide how to make use of what those organizations produce. This tension between growing capability and concentrated production is the starting point for everything in this article.

What do you think happens?

A small team wants to ship an AI-powered feature. Does it have to train its own large model before it can start building?

  • Yes, the team must train its own model first

  • No, the team can use a model that someone else has already trained

Reveal answer
Answer:

No, the team can use a model that someone else has already trained.

The source describes model as a service: organizations with the data, compute, and specialized talent to train large models build them and offer access. Anyone who wants an AI-powered application can use these models without first investing in building a model of their own.

What a Foundation Model Is

Definition

A foundation model is a large-scale AI model developed by a few organizations and made available for others to use as a service.

The word foundation describes the role the model plays for others. It is a base that many different applications can be built on, rather than a finished product built for a single purpose. The source names ChatGPT, Google's Gemini, and Midjourney as examples of this kind of model. It also makes clear that these models are not static: they are becoming more powerful and capable of more tasks over time.

From Language Models to Large Language Models

Foundation models did not appear suddenly. The source traces their lineage: foundation models emerged from large language models, which in turn originated as language models. Although applications such as ChatGPT and GitHub's Copilot can look like they arrived overnight, they are the result of decades of technical progress. The first language models emerged in the 1950s.

Language modelsFirst emerged in the 1950sLarge language modelsLanguage models grown tovery large scaleFoundation modelsLarge-scale models offeredfor others to build ongrew to large scaleoffered as a base for others
Which stage came first, and how does each later stage build on the previous one? Each stage is a point on one line of growth, not a replacement of the stage before it.

The progression is one of growth rather than replacement. A language model that has grown to a very large scale is a large language model, and a large-scale model offered for others to build on is a foundation model. The same underlying idea is present throughout, but each stage describes a different size of model and a different way it reaches its users.

Self-Supervision and Where the Labels Come From

Language models have existed for a long time, but they have only been able to grow to the scale they are today with self-supervision. Self-supervision is the technique that the source identifies as enabling this growth. The source introduces it briefly, as part of a short overview of what language models and self-supervision mean.

The central idea of self-supervision is that the training targets come from the training data itself rather than from a person labeling each example. In a supervised setting a human would have to attach a correct answer to every item. With self-supervision, the data supplies its own answers, so the volume of training material is not limited by how much human labeling can be done.

Raw training textUnlabeled dataInput portionThe part the model seesTraining signalInput paired with itstargetTarget portionGenerated from the sametextsplitsplitpairedpaired
Where do the training targets come from when no human labels the data? The text is split so that part of it becomes the input and the hidden part becomes the target.

Who Can Afford to Train a Foundation Model

Training large models requires data, compute resources, and specialized talent. The source states that only a few organizations can afford all three, which is why those organizations build the models in the first place. Scaling up has therefore moved the most expensive step out of reach for most teams, while lowering the barrier to building the applications that come after it.

GroupWhat it doesWhat it needsSource basis
Organizations that train foundation modelsBuild the large-scale model and offer access to itData, compute resources, and specialized talentOnly a few organizations can afford these requirements
Teams that build applicationsAssemble, adapt, and deploy applications around a modelAccess to a model that someone else has trainedCan use these models without first investing in building their own

Two groups in the model-as-a-service pattern and what each one needs

The source summarizes the effect in a short phrase: demand for AI applications has increased while the barrier to entry for building them has decreased. Two forces are at work. More people and teams want to use AI to raise productivity, create economic value, and improve quality of life. Meanwhile, the up-front cost of getting started has dropped because the expensive part, training the model, has already been done by someone else.

Model as a Service in Practice

The source describes a pattern called model as a service. The organizations that have the resources to train large models build them and then offer access to them. An application team does not need to own the training process to use the result. Its work shifts toward assembling, adapting, and deploying an application around a model that another organization trained and makes available.

Model providerA few organizations withdata, compute, and talentFoundation modelTrained large-scale modelAI applicationBuilt on top of the modelAccess as a serviceOffered for others to useApplication teamAssembles, adapts, anddeploystrainsoffered asused bybuilds
How does an application built by one team relate to a model trained and offered by another organization? The provider trains and offers the model, and the application team builds around it.

The diagram is a generated summary of the pattern the source describes. The source does not specify the technical interface between the two sides. What it does establish is the division of effort: one side carries the expensive training, and the other side carries the work of building the application.

Walking Through a Team's Build Decision

Worked example

Deciding Whether to Train or to Build on a Model

A product team wants to add an AI feature to its application. The team has an engineering staff and a clear product idea, but it does not have the large data collections, compute resources, and specialized research talent that training a foundation model requires. Should the team train a model, and what does the source suggest about its options?

  1. 1
    Identify what training requires

    The source says training large models requires data, compute resources, and specialized talent that only a few organizations can afford. The team lacks these, so training its own foundation model is not the realistic path.

  2. 2
    Identify who builds the models

    Those few organizations build the models and then offer access to them under the model-as-a-service pattern.

  3. 3
    Check whether ownership of training is needed

    The source states that anyone who wants to create an AI-powered application can use these models without first investing in building a model of their own. The team can focus on the application.

  4. 4
    Describe the team's real work

    The team's work becomes assembling, adapting, and deploying an application around an available model. This is the core of AI engineering as the source describes it.

Result

The team should build its feature on a foundation model offered by another organization, and its engineering effort goes into the application around that model rather than into training.

Mistakes Learners Make About Foundation Models

  • Common mistake

    Assuming that building an AI application requires training a model first

    What it looks like

    A team concludes it cannot start until it has its own large model trained from scratch.

    Why it fails

    The source says anyone who wants to create an AI-powered application can use these models without first investing in building a model of their own.

    Do this instead

    Start from a foundation model that is already available as a service, and focus engineering effort on the application.

  • Common mistake

    Treating AI applications as a recent invention with no history

    What it looks like

    Believing that ChatGPT-style products appeared with no earlier foundation.

    Why it fails

    The source traces the lineage back to language models first emerging in the 1950s, and notes that these products are the result of decades of technical progress.

    Do this instead

    Read the progression as growth: language models, then large language models, then foundation models.

  • Common mistake

    Thinking a large language model and a foundation model are unrelated ideas

    What it looks like

    Treating foundation models as a separate invention that replaced large language models.

    Why it fails

    The source describes growth rather than replacement. Foundation models emerged from large language models.

    Do this instead

    Treat a foundation model as a large-scale model offered for others to build on, which is a later stage of the same line of development.

  • Common mistake

    Believing that machine learning applications are new with foundation models

    What it looks like

    Assuming recommendation, fraud detection, and churn prediction only became possible with large language models.

    Why it fails

    The source notes AI already powered these before large language models became prominent, and many principles of putting AI into production still hold.

    Do this instead

    Recognize that foundation models change the scale and availability of models, bringing new possibilities and new challenges on top of existing practice.

  • Common mistake

    Confusing self-supervision with a method that needs a human to label every example

Practice Tracing the Path to Foundation Models

EASY

Without looking back, list the three stages in the path from early language models to foundation models, then state in one sentence what self-supervision contributed to that path. Finally, explain in a sentence why a small team building an AI product does not need to train its own foundation model.

Hints
  • Start with the 1950s and move forward in order of growth.
  • Self-supervision is the technique the source says enabled language models to grow to their current scale.
  • Look at the model-as-a-service pattern and what it means for organizations that need access rather than training.

Key Takeaways

  • A foundation model is a large-scale AI model developed by a few organizations and made available for others to use as a service, serving as a base that many applications can be built on.
  • Language models first emerged in the 1950s, grew into large language models, and then into foundation models, a progression of growth rather than replacement.
  • Self-supervision is the technique the source identifies as enabling language models to grow to their current scale, with training targets coming from the data itself.
  • Because training requires data, compute, and specialized talent that few organizations can afford, the model-as-a-service pattern lets application teams build AI products without training their own models.
  • AI engineering is the practice of assembling, adapting, and deploying applications around readily available models.

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