@hypersoren I’m not understanding the negative implication? If the venture leads to PortCos increasing margins due to AI adoption, that’s a good thing, right?
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Mo Battah
190 posts
Mo Battah
@mo_battah
https://t.co/0BkTP2d6Mu - operator-led tech diligence advisory for middle market private equity
Los Angeles, California Katılım Mayıs 2020
13 Takip Edilen49 Takipçiler
The incentive alignment of these orgs from the public reporting is strange
Anthropic and openai want to sell more $$$ tokens while PE firms want portcos to marginmaxx.
Feels circular to me.
MetaCritic Capital@MetacriticCap
My general impression is that OpenAI and Anthropic want to have IT services in separate companies so they can pay those people much lower salaries and much lower stock-based compensation. For Anthropic, it would be difficult to extend the pledge of “we will not fire you post ASI” to system integrators. I suppose OpenAI thinks the same.
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@MetacriticCap Valuation is completely different for system integrators. Their moves make sense.
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My general impression is that OpenAI and Anthropic want to have IT services in separate companies so they can pay those people much lower salaries and much lower stock-based compensation.
For Anthropic, it would be difficult to extend the pledge of “we will not fire you post ASI” to system integrators. I suppose OpenAI thinks the same.
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Rumored today that both OAI + Anthropic are in some way funding consulting firms that help companies adopt AI.
This is neither bearish or bullish — just proves that it's going to be a 10-20 year slog to get all businesses agentified.
Wrote about this a while back: drew.tech/posts/agi-some…
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@shcallaway DataDog and NewRelic have always been expensive. Tons of upstarts only exist due to that fact. DD and NR even even tried to help you cut your bill, which is what AWS does.
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@Shpigford @Cloudflare CloudFlare will endure the SaaSpocalypse, if only for the fact that it is not SaaS.
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everyone talks about how all the frontier labs are eating companies left and right with new features.
but i swear i've stopped using at least a dozen random SaaS tools because @cloudflare has quietly shipped entire replacements for them.
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@toddsaunders I sympathize with the customer and have always felt that way. Unfortunately, the customer’s story does not underwrite a future where enterprise SaaS is built by customers who do not employ meaningful software engineering staff.
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Stories like this will be the straw that breaks the camel's back.
The future of software is bespoke, and built in real-time by customers, not the company.
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@varunram @jonchu Maybe early stage (pre-seed, seed) take it into account. Nobody is valuing Series A startups off GitHub stars to any meaningful degree. You have to empathize with very early stage investors, there's not much for them to go off of. That's why they're often betting on the person.
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@jonchu The bigger solution would be for professional investors to stop making investment decisions around gh stars or product of the day, that’s the underlying motivation for a lot of folks
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Sadly, this is almost always the result of any accelerator OSS tool. I wish GH had a solution
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@mo_battah @garrytan Oh this wasn’t about him. He blocked me a long time ago I have no idea what he’s up to.
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@cleanwithmike PE + VC firms have asked me to join them in-house and my answer is always the same: that’s so dangerous, one person (manager, partner, firm) would have complete control over my life, you could fire me and I’d be screwed. A little under a year as my own business and it’s a dream.
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The job market right now is a wake-up call for a lot of people. Layoffs, pay freezes, return-to-office mandates. Everyone's realizing that the "safe" path isn't as safe as they thought. The people building their own income streams right now (even small ones) will be in a very different position in two or three years than the people who waited. Calling it now.
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Also all of the waterfront area around YC in the dogpatch is empty.
Yeah there are “plans” to fix it but only in 2026 California would the land right next to the building that produces 700 startups a year be empty for any amount of time.
Andrew Côté@Andercot
This is the nature preserve btw. This is the Wildland we are protecting against development. It's concrete. It's a runway. "It's a superfund site!" That the Navy has been remediating for decades and is almost complete. This land is priceless by dint of location.
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@asaio87 @joulsounet What are you talking about? All these people with zero experience on LinkedIn tell me you can one shot enterprise SaaS!
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harsh trust: you still cannot build a complex, successful production app with 0 employees and $200 claude code.
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@yijiefeng @Trace_Cohen Some PE firms are pretty far ahead while others are doing what your post says - hiring low-level agencies
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@Trace_Cohen Surprisingly the typical PE firm I talk to is more AI pilled than many of my friends in big tech
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I'm noticing a trend
there's a growing number of "AI consulting" firms charging $20K+ to "deploy Claude" to legacy businesses (mid-sized law, accounting, PE firms) as "Anthropic enterprise partners"
what this means:
- they install claude code, cowork
- run a few commands to connect to tools
- give generic or misleading advice on a tech stack
meanwhile, there's more interest than ever for firms with 0 technical staff to build SaaS in-house and there's an entire industry of advice givers seeking to profit off of this trend
last week I was on a call with a PE firm (working with one of these agencies) and someone who had never written code was asking whether to run a RAG vector DB on a Mac mini to chunk internal docs
can't make this up
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@venturetwins @f_dicostanzo No need for a VPS. You could just set up tailscale and SSH into wherever your OpenClaw is running to debug.
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Planned a day in Amsterdam with the help of my OpenClaw agent Dwayne.
He mysteriously shut down and I can’t debug him because the Mac Mini is thousands of miles away.
It’s weirdly sad that he can’t read my live updates 😭
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@GS_VCactivist That’s not true for my PE clients who prefer the name growth equity, they invest to grow the startup. Financial engineering is disappearing due to rates and sometimes not even possible due to the fund employing zero leverage. Happy to chat anytime :)
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@mo_battah But their model is still financial engineering with consistent cash flow
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there’s usually 1-2 yrs of your career that determine your entire net worth
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This is true although plenty of PE firms understand having to address tech debt and are willing to invest toward that, if the asset is attractive enough.
Vignesh Mohankumar@vig_xyz
PE firms do diligence on tech stacks and engineering teams like they're assets for many software cos, they're now actually liabilities if: - the platform can't support AI features - the team can't ship quickly with AI tools might be better off starting a new entity from scratch
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