In the current AI boom, one area that has struggled is companies attempting to build sustainable businesses around AI itself. A few companies have figured out how to monetize AI in ways investors view as durable, while the traditional picks-and-shovels businesses, such as NVDA, SNDK, IREN, CRWV, and others, have performed well. Broadly, however, many companies built using AI applications have struggled.
So why are we spending time looking at BullFrog AI? We believe it is one of the rare exceptions in the AI space with a genuinely interesting business model. BFRG has built a platform designed to take unstructured data, structure it, and move it through the analysis and synthesis process. For this work, the company charges a nominal fee that carries very high margins. More importantly, however, the company has developed a model that can generate recurring revenue and milestone payments based on the conclusions and implementation of its analysis, well after the initial project is complete.
We believe BFRG represents something unique in the AI business space, a company that solves a major problem, can scale its platform, and, when successful, can generate long-term milestone payments and/or recurring royalties.