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What’s happening in AI right now

The great AI distribution race

Three major AI distribution deals emerged this week, showcasing how technology companies are racing to put AI tools in front of users through established channels. Verizon became the first U.S. wireless carrier to bundle AI features by offering Google One AI Premium at a 50% discount. The California State University system partnered with OpenAI to give 500,000 students and faculty access to ChatGPT Enterprise. And OpenAI forged a partnership with Kakao to develop AI products for the South Korean market.

Why distribution matters now

The flurry of distribution deals highlights how AI companies are shifting focus from raw capability development to getting their tools into users' hands at scale. This mirrors a pattern seen in previous technology waves - after initial breakthroughs, success often depends more on distribution than pure technological advantage.

The new distribution playbook

The emerging playbook combines traditional distribution channels with AI-specific considerations:

Educational institutions provide both distribution scale and training grounds for future users. CSU's deployment of ChatGPT Enterprise to 500,000 users represents OpenAI's largest organizational implementation globally.

Telecom providers can seamlessly bundle AI features into existing subscription relationships. Verizon's Google One AI Premium discount makes advanced AI tools accessible to mainstream consumers through familiar billing relationships.

Regional tech leaders offer cultural and linguistic adaptation capabilities. OpenAI's partnership with Kakao leverages the Korean company's deep understanding of local market needs.

Beyond pure distribution

While distribution deals dominated headlines, other developments showed how AI is being integrated into existing products and workflows. Zoho unveiled an expansion of its enterprise AI capabilities with Zia Agents and Agent Marketplace. Google Cloud partnered with App Orchid to enable natural language querying of enterprise data.

What this means

The race for distribution channels suggests we're entering a new phase of AI adoption where accessibility and integration matter more than raw capabilities. Companies that can't secure strong distribution partnerships may struggle even with superior technology.

This shift also highlights the growing importance of domain expertise and existing customer relationships. Incumbents in sectors like education, telecommunications and enterprise software suddenly find themselves perhaps holding valuable cards in the AI game.

The next few months will likely see more creative distribution partnerships as AI companies seek to establish beachheads in specific industries and regions. For business leaders, the key question shifts from "What can AI do?" to "How do we get AI capability to our users in the most friction-free way possible?" The answers may determine which companies capture value in the next phase of AI adoption.

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