AT

Alma Tuck@almatuck

60% is purely insane means unaffordable prices for business. This has been in the news cycle a lot over the last 45 days with Microsoft and Uber both leading the charge cutting AI costs after their massive spending. Then there’s the Axios article of a company the blew $500 million in one month. Purely nuts

HI

himvaan@kb_india_bglr

@HarryStebbings Thanks

HS

Harry Stebbings@HarryStebbings

The single most common piece of feedback I get on the Trio show with Jason and Rory is: I love that there is no politics and no egos. It is the only podcast that I listen to EVERY week, regardless. This week is better than ever. “ It may have been a distraction for OpenAI that they were so successful in consumer”. “At the early stage, you can't invest in two competitors. In the late stage, structurally, you have to.” So many bangers in this one with @jasonlk and @rodriscoll: - Apple Sues OpenAI - @finkd Back on X and Challenging Codex and Claude Code - SK Hynix's $26BN IPO - Is Seed Investing Dead: @Jason Calacanis Departs Seed for Growth - Greylock Raises New $1.5BN Fund My notes below: 1. Why Apple Suing OpenAI for Trade Secrets Will Kill Their Hardware Product Apple’s trade secrets lawsuit could become a mercy killing for OpenAI’s distracting hardware ambitions. Hardware burns cash, and this legal pressure gives Sam Altman the perfect excuse to put the project on the chopping block. It forces OpenAI to keep the main thing the main thing: capturing the massive enterprise value of LLMs in coding. 2. Every CIO Is Going to Have a Cheap Token Model to Stop the Madness With enterprise AI spend surging up to 60x, the era of unlimited token burning is over. Organizations are rapidly moving to tight, tiered token budgets. Every half-awake CIO will route simple workflows to cheap token models like Meta’s Spark or Anthropic’s Haiku to stop the cash madness. 3. Why Venture Debt on Slow-Growth SaaS Is a Sucker Bet That Ends at 1x TouchBistro selling for 1x ARR, or $70 million on $70 million ARR, is a brutal case study of a stalled unicorn. Stacking heavy venture debt on top of slow growth misaligns the cap table and wipes out equity holders. The lesson for founders is simple: take drastic action to fix growth before your hard work gets trapped at 1x. 4. Why the AI Memory Hoard Will Aggressively Cannibalize Traditional Enterprise SaaS AI hardware demand is creating a major capital reallocation shock across the enterprise. IBM directly blamed a major earnings miss on CIOs rushing to hoard memory infrastructure before prices rise further. Because tech budgets are finite, this explosion in AI CapEx aggressively cannibalizes spend on legacy SaaS and traditional productivity tools. 5. Why Historical Tech Breakthroughs Require Pushing Ethical Boundaries Until They Become Legal Massive tech breakthroughs, from Uber’s taxi battles to LLM data training, often rely on pushing ethical and regulatory gray zones. If you fail, the rule-breaking is condemned. If you scale into a massive success, the boundaries get rewritten. As the old line goes: “Treason does not succeed. If it does succeed, no one calls it treason.” 6. Why Paul Graham Truly Is the GOAT @paulg is the GOAT because he built a scalable machine, not just an investment portfolio. By delegating startup selection to a bench of general partners, he engineered an N-of-one business model that runs without him. That system lets YC pick $100 million checks off the floor when its startups eventually go public.

HS

Harry Stebbings@HarryStebbings

Has Apple Ruined OpenAI’s Hardware Dream: "OpenAI's hardware ambitions look far more uncertain than they did a few months ago. The argument is that a costly trade secrets lawsuit, combined with intensifying competition, could make an expensive hardware bet look like a distraction from OpenAI's core mission. Rather than proving hardware can't succeed, it may simply push OpenAI to pause the project and refocus on winning in AI software." @jasonlk Love to hear your thoughts on this @tfadell @willahmed @imranchaudhri @jmtrivedi