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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 miesięcy temu·0 comments

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swexbe
·w zeszłym miesiącu·discuss
Anyone who's credit rating is bad enough to not be able to get a credit card.
swexbe
·4 miesiące temu·discuss
VC money bailing out other VCs. A tale as old as time.
swexbe
·4 miesiące temu·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 miesiące temu·discuss
OpenAIs investors can look forward to having an operating margin as impressive as the company that produces Band-Aid
swexbe
·5 miesięcy temu·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 miesięcy temu·discuss
Does this matter if a 2 person startup can blow them away on price?
swexbe
·5 miesięcy temu·discuss
...if it works.
swexbe
·5 miesięcy temu·discuss
Muddying the water to make it seem deep.
swexbe
·5 miesięcy temu·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 miesięcy temu·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 miesięcy temu·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 miesięcy temu·discuss
When you take depreciation into account, it's probably less profitable than a government bond.
swexbe
·7 miesięcy temu·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 miesięcy temu·discuss
Most investors have more money invested in their house than stocks.
swexbe
·7 miesięcy temu·discuss
weird flex
swexbe
·7 miesięcy temu·discuss
Despite
swexbe
·7 miesięcy temu·discuss
...and a decade later they were close to bankruptcy.
swexbe
·7 miesięcy temu·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 miesięcy temu·discuss
Just like no one normal would ever switch from internet explorer?
swexbe
·9 miesięcy temu·discuss
What are you talking about? It's trading at 55x EPS and 41x forward EPS.