John Cochrane: “What should government do about rising energy prices? Nothing. Or, more concretely, get out of the way, ease restrictions, and let the market work its magic of sending energy to the most economically important uses while encouraging others to save, substitute or provide new energy. Keep inflation under control, and don’t induce financial problems.”
NYTimes: “The new business models have made it more difficult for investors to evaluate the businesses of software companies, Ms. Saiprasad said. Unlike revenue from seat-based pricing, the money that other models bring in is less predictable, she added. The shift has spooked Wall Street. Since October, anxieties over A.I. have erased roughly $3 trillion in market capitalization from software companies, or a third of the value of the S&P 500 index’s software sector. So far this year, shares of Salesforce and ServiceNow have fallen about 30 percent. “This is an industry that people believed is extremely durable and that, once you get a customer, you have that relationship for the next one, three, five, 10 years,” Mr. Zukin said. “Now, with the changes happening, you don’t even know what’s going to happen in two months.””
OpenAI: “OpenAI was the fastest technology platform to reach 10 million users, the fastest to 100 million users, and soon the fastest to 1 billion weekly active users. Within a year of launching ChatGPT, we reached $1B in revenue. By the end of 2024 we were generating $1B per quarter. We are now generating $2B in revenue per month. At this stage, we are growing revenue four times faster than the companies who defined the Internet and mobile eras, including Alphabet and Meta.”
Jordi Visser: “For more than a decade, equity markets were built around a simple premise: durable franchises deserved durable multiples. Investors weren’t just buying earnings. They were buying time. Time to compound. Time before meaningful competition arrived. Time protected by scale, distribution, switching costs, and capital intensity. Time was the moat. The entire architecture of modern markets reinforced that belief. Passive flows concentrated into the largest platforms. Growth indices tilted toward scalable digital economics. Valuation frameworks stretched duration assumptions further into the future. A narrow cohort absorbed more and more of the index because the math appeared rational. Scale begot scale. But something subtle has changed. AI does not simply disrupt business models. It compresses time…AI lowers the cost of building businesses. But it raises the bar for sustaining advantage. More companies can start. Fewer can dominate.”
