What Are Foundation Models in AI?

Foundation Models are central to the ongoing hype around Artificial Intelligence. Google’s BERT, OpenAI’s GPT series, Stability AI’s Stable Diffusion, and thousands of models from the open-source community Hugging Face pretrained on large data assets serve as Foundation Models in AI.

So, what exactly is a Foundation Model? Let’s discuss the working principles, key purpose, challenges and opportunities of Foundation Models in AI.

Foundation models: Properties & objectives

A Foundation Model is a general class of generative AI models that is trained on large data assets at scale. A foundation model must have the following key properties:

Properties of foundation models in Artificial Inteligence

Scalable. The model architecture can efficiently train on large volumes of multidimensional data. Foundation models can fuse knowledge from multimodal data about a downstream application.

Multimodal. The training data can take multiple forms including text, audio, images and video. For example, medical diagnosis involves analysis of:

As in multimodal AI, the foundation model can capture knowledge from all information domains that span multiple modes.

Expressive. The models not only converge efficiently to accuracy metrics but can assimilate real-world data used to train them, by capturing rich knowledge representations.

Compositional. The models can effectively generalize to new downstream tasks. Similar to human intelligence, foundation models can effectively generalize on the out-of-distribution data. This information may contain some similarities to the training data, but cannot belong to the training data distribution itself.

High memory capacity. The models can accumulate growing and vast knowledge. Since the models learn from a variety of data distributions, it can continually learn on new data without catastrophically forgetting its previously learned knowledge. This objective is also known as continual learning in AI.

Together, these properties combine to realize three essential objectives:

  1. Aggregating knowledge from multiple domains.
  2. Organizing this knowledge in scalable representations.
  3. Having the ability to generalize on novel context and information.

Training foundation models

Training mechanism typically entails self-supervised learning. In a self-supervised setting, the model learns general representations of unstructured data without externally imposed ground-truth labels.

In simple terms, an output label corresponding to the input data is not known.

Instead, common patterns within the data distribution are used to group them together based on discovered correlations. These categories are generated from a pretext task that is generally easier to solve and are used as supervisory signals or implicit labels for the more challenging downstream tasks such as:

Following the same concepts, the paradigm of the Foundation Model is enabled by its scale of learning against large volumes of information, and the deep learning approach of Transfer Learning.

The key idea of transfer learning is to use existing knowledge to solve a complex task. In the context of deep learning, transfer learning refers to the practice of:

  1. Pretraining a model on a general surrogate task.
  2. Then adapting or finetuning the model to perform well on a specialized downstream task.

The recent success of transfer learning comes down to three fundamental driving forces in present era of artificial intelligence:

Recent advancements in transfer learning, which is the key enabler of general-purpose foundation models used today, are largely attributed to transform-based architecture models deployed in a self-supervised training setting.

AGI & foundation models

The hype around AI is largely based on the promise of AGI: Artificial General Intelligence. AGI refers to an AI agent with intelligence that can surpass a human mind. This promise comes from the emergence and homogenization of general foundation models.

Limitations of foundation models

Foundation models also have some limitations. Since the model can only train on publicly available information, it can naturally learn a bias toward highly represented groups (or a bias against underrepresented groups).

As we have already observed the instances of inductive bias among popular foundation models, it is safe to say that, so far, no single algorithm or model that can perform well universally.

The No Free Lunch theorem persists. For now, at least, AGI is far from reality.

FAQs about Foundation Models in AI

What are foundation models?
Foundation models are large-scale machine learning models trained on massive datasets that can be adapted to a wide range of downstream tasks.
How are foundation models different from traditional machine learning models?
Foundation models are trained on broad data and can be adapted to many tasks, whereas traditional models are typically trained for specific tasks with narrower datasets.
What are some examples of foundation models?
Examples of foundation models include GPT-3, BERT, and DALL-E.
What are the benefits of using foundation models?
Benefits include improved performance on a variety of tasks, reduced need for task-specific data, and the ability to transfer learning across domains.
What are the risks or challenges associated with foundation models?
Risks include biases in training data, high computational requirements, and potential misuse.

Related Articles

How to Use LLMs for Log File Analysis: Examples, Workflows, and Best Practices
Learn
7 Minute Read

How to Use LLMs for Log File Analysis: Examples, Workflows, and Best Practices

Learn how to use LLMs for log file analysis, from parsing unstructured logs to detecting anomalies, summarizing incidents, and accelerating root cause analysis.
Beyond Deepfakes: Why Digital Provenance is Critical Now
Learn
5 Minute Read

Beyond Deepfakes: Why Digital Provenance is Critical Now

Combat AI misinformation with digital provenance. Learn how this essential concept tracks digital asset lifecycles, ensuring content authenticity.
The Best IT/Tech Conferences & Events of 2026
Learn
5 Minute Read

The Best IT/Tech Conferences & Events of 2026

Discover the top IT and tech conferences of 2026! Network, learn about the latest trends, and connect with industry leaders at must-attend events worldwide.
The Best Artificial Intelligence Conferences & Events of 2026
Learn
4 Minute Read

The Best Artificial Intelligence Conferences & Events of 2026

Discover the top AI and machine learning conferences of 2026, featuring global events, expert speakers, and networking opportunities to advance your AI knowledge and career.
The Best Blockchain & Crypto Conferences in 2026
Learn
5 Minute Read

The Best Blockchain & Crypto Conferences in 2026

Explore the top blockchain and crypto conferences of 2026 for insights, networking, and the latest trends in Web3, DeFi, NFTs, and digital assets worldwide.
Log Analytics: How To Turn Log Data into Actionable Insights
Learn
11 Minute Read

Log Analytics: How To Turn Log Data into Actionable Insights

Breaking news: Log data can provide a ton of value, if you know how to do it right. Read on to get everything you need to know to maximize value from logs.
The Best Security Conferences & Events 2026
Learn
6 Minute Read

The Best Security Conferences & Events 2026

Discover the top security conferences and events for 2026 to network, learn the latest trends, and stay ahead in cybersecurity — virtual and in-person options included.
Top Ransomware Attack Types in 2026 and How to Defend
Learn
9 Minute Read

Top Ransomware Attack Types in 2026 and How to Defend

Learn about ransomware and its various attack types. Take a look at ransomware examples and statistics and learn how you can stop attacks.
How to Build an AI First Organization: Strategy, Culture, and Governance
Learn
6 Minute Read

How to Build an AI First Organization: Strategy, Culture, and Governance

Adopting an AI First approach transforms organizations by embedding intelligence into strategy, operations, and culture for lasting innovation and agility.