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swexbe

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Private Equity's Giant Software Bet Has Been Upended by AI

bloomberg.com
2 points·by swexbe·5 mesi fa·0 comments

comments

swexbe
·mese scorso·discuss
Anyone who's credit rating is bad enough to not be able to get a credit card.
swexbe
·4 mesi fa·discuss
VC money bailing out other VCs. A tale as old as time.
swexbe
·4 mesi fa·discuss
Customers come back to Netflix since they have the best content out of all the streaming providers. This is their moat.

ChatGPT, on the other hand, is literally exactly identical to their competitors for the most common use cases.
swexbe
·4 mesi fa·discuss
OpenAIs investors can look forward to having an operating margin as impressive as the company that produces Band-Aid
swexbe
·4 mesi fa·discuss
Stickyness absolutely helps. But it won't get you anywhere close to a MAG7 operating margin. I think we are already seeing the start of price wars. I cancelled my ChatGPT subscription once i realized Gemini Pro was included in my Google Workspace and never looked back for a second.
swexbe
·5 mesi fa·discuss
Does this matter if a 2 person startup can blow them away on price?
swexbe
·5 mesi fa·discuss
...if it works.
swexbe
·5 mesi fa·discuss
Muddying the water to make it seem deep.
swexbe
·5 mesi fa·discuss
Except resources won't be plentiful for a long while since AI is only impacting the service sector. You can't eat a service, you can't live in one. SAAS will get very cheap though...
swexbe
·5 mesi fa·discuss
They are not free, they are paid for by taxes. And in pretty much all countries, irrespective of funding model, these services have increased in price much faster than general inflation. This is the Baumol effect in action.
swexbe
·6 mesi fa·discuss
> indicies that usually do not perform that well

MSCI EM has outperformed MSCI US since it's inception in 2001 if you look at total return.
swexbe
·6 mesi fa·discuss
When you take depreciation into account, it's probably less profitable than a government bond.
swexbe
·7 mesi fa·discuss
I wish I could use Mullvad. But their IPs are banned from many streaming services and they don't change them often enough so I am stuck with Nord.
swexbe
·7 mesi fa·discuss
Most investors have more money invested in their house than stocks.
swexbe
·7 mesi fa·discuss
weird flex
swexbe
·7 mesi fa·discuss
Despite
swexbe
·7 mesi fa·discuss
...and a decade later they were close to bankruptcy.
swexbe
·7 mesi fa·discuss
All chat apps look exactly the same and have exactly the same features. The friction is basically non-existent compared to email services, social media, web browsers, &c.
swexbe
·7 mesi fa·discuss
Just like no one normal would ever switch from internet explorer?
swexbe
·9 mesi fa·discuss
What are you talking about? It's trading at 55x EPS and 41x forward EPS.