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Key takeaways

  • Decide how deep into the model your project needs to go before you compare anyone. Integration, customization, training data and interface design are four different purchases, sold by four different kinds of company.

  • Most generative AI projects need integration, not a custom model. Start with an existing model and your own data, and only move deeper when evaluation proves the off-the-shelf model can't do the job.

  • Custom models are now sold directly by the model makers, Cohere and Mistral AI among them, so choosing one for customization also means committing to that company's models.

  • Training data partners like Scale AI and Surge AI mostly serve frontier labs. Unless you're training or post-training a model yourself, you probably don't need one.

  • When users meet the model directly, the interface decides whether the feature gets used, so design and engineering have to work on it together from the first week.

Frequently asked questions

A generative AI development company builds software that uses a model to produce text, images, code or other content, and gets it into production. The work covers choosing the model, connecting it to your data, evaluating its output, designing how people interact with it and running it safely. Companies differ mainly in how deep into the model they go.

Decide how deep into the model your project needs to go, then compare two or three companies at that depth. Integration partners build on existing models, customization partners adapt models to your data, training data partners serve teams training models, and interface studios design the experience. Within a group, compare evaluation practice, model lock-in and named references.

Most projects can use an existing model with retrieval over their own data. A custom or fine-tuned model is worth it when the existing one keeps failing a measurable test on your domain, or when cost and latency at your volume justify a smaller specialized model. Prove the shallower option fails before paying to go deeper.

Retrieval-augmented generation, or RAG, gives a model your documents at the moment it answers, without changing the model. Fine-tuning changes the model itself by training it further on your examples. Retrieval is cheaper and easier to keep current, while fine-tuning suits consistent style, format or domain behavior that retrieval alone can't produce.

A training data company supplies what model builders need to improve a model: expert-written data, human feedback, reinforcement learning environments and evaluation. Scale AI, Invisible Technologies, Surge AI and Toloka are examples. Most of their work is for labs training frontier models, so you only need one if you're training or post-training a model yourself.

It depends mostly on depth. Integration on an existing model is the cheapest and fastest, often weeks for a first feature. Customization adds data preparation, training runs and ongoing evaluation. Training data work is priced by volume and expertise. Few companies publish rates, so compare proposals on scope, evaluation and ownership, not day rates.

Generative features often fail at the point where people meet them: users don't understand what the model is doing, can't tell when it's wrong or can't correct it. Designing states like thinking, uncertainty and correction turns a working model into a feature people trust. Priceline's Penny assistant, for example, was designed so its response time reads as the assistant thinking, not stalling.

Yes, for customization. Both sell engagements in which their own engineers and researchers adapt or train a model on a company's data and deploy it privately. The trade-off is that the result is built on their models, so choosing either for customization also means choosing its model family.


Tiago Coelho

CTO

As CTO of Pixelmatters, Tiago Coelho leads the engineering organization, wrote the handbook and quality standards it ships against, and is rebuilding delivery around AI. He writes on technology strategy and engineering leadership.

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