The AI Trillion-Dollar Product

FUTURE

In a very recent interview, Satya Nadella, Microsoft’s CEO, claimed that current business applications will “collapse in the agent era.” Notably, he is referring to the very same apps his company is currently selling. Thus, he is predicting the death of its own current business model in favor of AI agents.

But this vision implies a much more powerful change that Satya is less keen on mentioning because it directly impacts Microsoft’s raison d’être: the introduction of AI as a structural part of general-purpose computing, the end game of ChatGPT: the LLM Operating System, or LLM OS.

This vision is so powerful that it is unequivocally OpenAI’s grand plan. Today, we are distilling their vision into simple words. I believe this is one of my most didactic articles on the future of AI.

In it, you will:

Lean how modern computers work and how this is about to change completely,

Learn what the word ‘agents’ really means in full detail,

Learn about their most powerful use case, the LLM OS, which will serve as the platform on which most future software will be built, and we will look at an actual implementation of this idea.

Finally, understand Meta’s strategy for keeping open-sourcing Llama models (and let me tell you, Zuck is two steps ahead of everyone else).

Learn how dramatically this paradigm will change what computers are and, importantly, how humans work.

It’s not benchmarks that lured investors into assigning companies like OpenAI, Anthropic, or xAI the insane market values they enjoy today ($250 billion combined); it’s this precise trillion-dollar use case.

Let’s dive in.

Changing The Way You Do Everything

To understand how game-changing the idea of an LLM Operating System (LLM OS) is, we first need to take a few boring-but-short seconds to talk about classical computers.

A 10-second intro to computers

A computer combines hardware, an operating system, and software applications to perform tasks.

Hardware is the physical machinery, including the central processing unit (CPU), memory (RAM and storage), the Graphical Processing Unit (GPU), input devices like keyboards, and output devices like screens. The CPU is the “brain” that processes instructions, while memory stores and retrieves data as needed. The GPU manages loads that the CPU decides to, mainly those that can be parallelized, like rendering pixels on a screen.

The operating system (OS) is the middle layer—like a bridge—between the hardware and the software applications the user interacts with. It manages hardware resources, runs background services, and provides a user-friendly interface for controlling the computer. The OS ensures that applications can run smoothly by managing files, memory, and tasks, making the hardware accessible without the user needing to understand its complexities.

Software applications are what users actually interact with to perform specific tasks, such as browsing the Internet, editing documents, or playing games.

In a nutshell, the hardware provides the foundation, the operating system coordinates everything, and software applications enable the user to accomplish specific tasks.

This is how all current classical computers behave. Importantly,…

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