Things David Says on Podcasts

And like the best coders in the world have like fully flipped over on this. And, you know, if you talk to like the CEOs at the cutting edge companies, I think they would tell you that they feel much more productive. Like I, you know, spending time with Stripe, like they feel like there's very high returns to them being able to be a lot more efficient in writing code. You know, like is like Procter and Gamble getting big efficiency gains from what they're spending on AI today? Like probably not yet, but I think they will. They probably need a lot of hand holding. That's probably the answer is, you know, I think the labs and Databricks and Palantir, companies like that are probably thinking about it the right way where you have to do a lot of handholding to produce value, but you will produce a lot of value for the Those companies. And then there's companies like Stripe. I don't know. One of the things that we're thinking a lot about right now is where is that effort actually going to? Is it going to like front end building more products or is it going to like back end trying to make your business more efficient? And like the best companies in the world right now are singularly focused on front end. Like you can produce 10x, 100x more revenue potentially if you nail the next product. Yes. Right. Whereas like on the cost side, like you can only get so much more efficient and that opportunity will kind of always be there. It's like latent. So it's like shorting your own future if you are just focused on the cost side. Whereas like you're taking an expansive view of what you can become if you're focused on the front end. By the way, the open router

for sure. Like including like big holder retail holders of the stock. Like a friend of mine who has a huge position. And I'm like, explain it to me. And he's like, good vibes. But what has happened, right? Like they're massively accelerated and commercial and they're now seen, you know, among CEOs as like a trusted place to go implement your AI. So it actually, it has actually given them a direct benefit on the commercial side because they're seen as like the ones that will navigate the situation for you and they're trusted. The valuation is a huge benefit for them. And then it's massive for them retaining and hiring employees, similar to the Elon companies. Like Elon, you know, obviously like having a big valuation allows him to have a bigger war chest, to buy companies, to raise more capital, to have loyal followings. So you can look at like the high retail ownership stocks and there's like a correlation if they're doing well, a correlation to the valuation. It was funny. I heard from a hedge fund guy this theory on shorting stocks and his theory on shorting stocks was, I never short a messianic founder and I never short a product that people love. The inverse of that is if you have a messianic founder and there is a product that people love, you can actually like trade very high and have all these benefits. Right. Right now in AI, obviously you said why the capital side matters and valuation side matters. It is incredible that the whole market is like hanging by a thread on the performance of like two now kind of three private companies on like a monthly basis.