The case against investing in AI coding tools outside model providers

Harry Stebbings' notes from a discussion with Naveen Rao say Rao would avoid investing in agentic coding tools outside model providers. Rao argues that model providers will capture the value while coding interfaces and supporting tools are not sticky. He also says he does not see software as a huge market in 20 years and expects companies building robotics models to end up selling robots alongside models designed for specific tasks.