Hot in Enterprise IT/VC - What’s 🔥 in Enterprise IT/VC #405
What’s 🔥 in Enterprise IT/VC #405$2.9 Trillion wiped out in stocks, $1 Trillion in CapX spend for AI - stay the course, just a mini-bubble in a long 10+ year game - time to keep building 🏗️ but choose wisely as always!What a week! Let me summarize as best I can: from the Kobeissi Letter:
Technically speaking, here’s what happening behind the scenes in finance - the good old fashioned Yen carry trade which is unwinding (John Doss):
And concurrent with this, the megacap tech cos like Microsoft, Google, Amazon, and Meta are asking Wall Street to be patient as over $1 Trillion gets spent on CapX to build data centers and buy GPUs to support the “coming” AI boom. Wall Street is getting impatient behind the backdrop above. Now add escalating tensions in the Middle East and a small chance for WW III (please no), and you have a 10% Nasdaq correction and fear infiltrating the market. As Warren Buffet said: Be Fearful When Others Are Greedy And Greedy When Others Are Fearful It’s time to stay the course. We’ve seen this movie 🎥 before. History rhymes, choose wisely and in the long run I have no doubt we will all be 📈. Here’s just a reminder from the last AI bubble in 2017. Today’s “AI is a bubble” is timely as markets are having worst day since March 19, 2020 sparked by COVID fears. (FT)
As I’ve said before, we will have a series of mini bubbles on our way to 📈 in 10 years. I had a chance to discuss all of this as I went on CXOTalk live yesterday (watch here) as a “VC Update: AI Investing” which is a catch up from the last time I went on the show over 7 years ago March 2017! Take a look at this excerpt 👇🏼 from that 2017 talk. You can also watch here if interested- feels like a time warp! Here are a few clips from that talk and all equally apply today as they did 7 years ago:
If you stayed the course back then through the crash, you’d be sitting pretty. And had we all not invested in data infrastructure, the cloud, labeling, classification, and more we would not have set up the rails and framework for where we are today in the GenAI revolution. BTW, my other guests who were founders of portfolio companies Init.ai and Catalytic both ended up selling their companies to Apple and PagerDuty respectively. We all learned a ton in that wave. Yes, this GenAI wave 🌊 is going to take time, and the big public cos are asking Wall Street to be patient, but I do know that all of this CapX will only make the models 10x better over time, compute for inference and training much cheaper, and many of the projects we are dreaming of will come to fruition. Microsoft’s Amy Hood talks about a 15 year outlook!
And Google:
It’s the same message from Meta:
Here’s why CapX is also going up - the cost to train each new foundational model will be 10X the prior one 🤯! Great news is that since Meta is open sourcing Llama, we will all benefit from this expenditure. Despite the insane amount of CapX and long payout curve, there are early pockets of excitement, just not big enough yet to show Wall Street that $1 Trillion of CapX is worth it. First, as you all know my mantra, there is no AI in the enterprise without AI security, and I’m 🔥 up to share that portfolio co Protect AI just closed a $60M Series B Financing at a $460M valuation led by Evolution Equity. GenAI also works insanely well for coding - just look at the GitHub CoPilot numbers from the Microsoft earnings transcript.
Yes, we lost $2.9 Trillion of market cap yesterday and Wall Street is impatient on AI revenue, but if anything, you should all know, stay the course, we will have a series of mini bubbles, but in the long run, this platform shift is one of the most important that we will ever experience. Builders will keep building and real investors will keep investing wisely… As always, 🙏🏼 for reading and please share with your friends and colleagues. Scaling Startups#pretty solid advice when it comes to being acquired - I don’t agree with all but definitely these are many of the upfront considerations - for me one of most important concepts is that every founder should get to know who their potential partners/acquirers are well in advance of any M&A transaction…build those relationships super early #hey it’s the Olympics and no better place to find amazing stories of perseverance and inspiration, check this out - I can watch this a dozen times over… #💯 #how 44 leading tech companies price their AI products… Enterprise Tech#Salesforce is doing a great job bringing power of AI and agentic workflow to regular business users - must watch video as products like this that will unleash next wave of AI value - workflows! #Cato Networks in SASE cybersecurity market announced crossing $200M in ARR, doubling from, $100M ARR in 2 years - here are others who have reported over $100M ARR in past (according to Cyburger)- I would also add BigID to this list for Israeli cybersecurity cos
#yes, ransomware is a massive business 🤯 - one $75M payment, up almost double from largest 3 years ago
#a16z market map for AI powered sales intelligence apps - it’s a super thoughtful post and I encourage you to read the full version here #hot take from Gergely - agree or disagree? Definitely a bold launch from Tezi which blew up on social so the company does have people paying attention! #Nvidia’s next big thing - robotics
#and here it is, Delta is suing CrowdStrike and Microsoft - astonishingly CrowdStrike is down another 9.5% on Tuesday meaning that its market cap has dropped from $83.4B pre-software update to $57B, 📉 an astonishing $26.4B. The WSJ added that the tech outage cost Delta $500M. #what’s next when it comes to Developer Tools and AI (2024 Developer Survey from Stack Overflow) Check out the “interested in using” where 13.2% are using AI for reviewing code now but 40.9% are interested…many other areas also jump off the page #As mentioned in last week’s What’s 🔥, just a matter of time (from The Verge) “Microsoft calls for Windows changes and resilience after CrowdStrike outage”
#Musings on building a Generative AI product from LinkedIn Eng Team - as you read the full post here, you can understand the tradeoffs between accuracy, speed, and cost and how LI thinks about it #all startups who build and train their own models eventually end up with the only folks who can continue to pay massive CapX to keep iterating - now Character.AI ends up back at Google in another non-acquisition licensing deal which is an acquisition (The Information)
Markets#well this aged well 🤣 - here’s Rich Handler, CEO of Jefferies, saying the IPO window is open. Everything changed since his post from earlier in the week. However, he’s not wrong once we get through this mini-crisis, just need to get through the election, avoid a recession with some rate cuts, and eventually, I do believe that the public markets will be hungry again for more enterprise software cos who are in high/hyper growth mode (>30% and >40% NTM growth) as none exist in the market now other than OneStream which just went public (read more from What’s 🔥 #402 #Jamin’s always informative chart on the big cloud giants What's Hot 🔥 in Enterprise IT/VC is free today. But if you enjoyed this post, you can tell What's Hot 🔥 in Enterprise IT/VC that their writing is valuable by pledging a future subscription. You won't be charged unless they enable payments. |
Older messages
What’s 🔥 in Enterprise IT/VC #404
Saturday, July 27, 2024
GenAI skepticism builds but 🙏🏼 ServiceNow for delivering AI monetization 💰 powered by "domain specific LLMs" ($1B revenue opportunity in just the next year) ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What’s 🔥 in Enterprise IT/VC #403
Saturday, July 20, 2024
Cybersecurity wakeup call - 62% of the global external attack surface is concentrated in the products and services of just 15 companies 🤯 ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What’s 🔥 in Enterprise IT/VC #402
Saturday, July 13, 2024
What are the implications when there are only 72 public enterprise software companies worth >$5B + there are still >1500 🦄? ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What’s 🔥 in Enterprise IT/VC #401
Saturday, July 6, 2024
Going into attack mode post ZIRP, parallel thoughts from the dot.com implosion and rebound circa 2004 - the time is now! ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What’s 🔥 in Enterprise IT/VC #400
Saturday, June 29, 2024
Some startups are like a fine wine 🍷, Clay's 7 year overnight success story to $500M Series B valuation ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
You Might Also Like
🗞 What's New: ~40% of young adults get their news from influencers
Saturday, November 23, 2024
Also: "File over App" for digital longevity ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Initiator Creator - Issue 145
Saturday, November 23, 2024
Initiator Creator - Issue #145 - ( Read in browser ) By Saurabh Y. // 23 Nov 2024 Presented by NorthPoll This Week's Notes: Content-rich designs looks more convincing I just love how Basecamp
🛑 STOP EVERYTHING 🛑 BLACK FRIDAY IS NOW!
Saturday, November 23, 2024
This is your sign to take action—2025 could be your breakthrough year, but only if you start now. Black Friday_Header_2 Hey Friend , This is getting serious. We're handing over $1700 in value as
What’s 🔥 in Enterprise IT/VC #421
Saturday, November 23, 2024
Thoughts from Goldman's PICC + optimism for 2025? ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
I'm blue
Saturday, November 23, 2024
Hey, tl;dr – I've decided to delete all my Twitter posts, lock down my account, and leave the platform. And I'm going all-in on Bluesky, which (in the last month) has become 1000x more fun
🚀 Globalstar to the Nasdaq
Saturday, November 23, 2024
Plus $RKLB CEO becomes a billionaire, DIRECTV $SATS debt deal called off, TEC's $160M Series B, and more! The latest space investing news and updates. View this email in your browser The Space
Theory Two
Friday, November 22, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Theory Two Today, we're announcing our second fund of $450
🗞 What's New: AI creators may be coming to TikTok
Friday, November 22, 2024
Also: Microsoft's AI updates are helpful for founders ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
behind the scenes of the 2024 digital health 50
Friday, November 22, 2024
the expert behind the list is unpacking this year's winners. don't miss it. Hi there, Get an inside look at the world's most promising private digital health companies. Join the analyst
How to get set up on Bluesky
Friday, November 22, 2024
Plus, Instagram personal profiles are now in Buffer! ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏