AI Economics in the East

In the most recent All-in episode, Brad Gerstner from Altimeter (which owns stakes in both OpenAI and Anthropic) pushed back at the gross margin concerns for AI labs. From Brad Gerstner (emphasis mine): “Their gross margins are exploding higher. Like the fastest increase in gross margins I've probably

Too Cheap to Meter, Too High to Measure

Programming Note: As a reminder, every Sunday, I write pieces that are predominantly based on personal experiences which may or may not be loosely connected with investing. If you are reading MBI Deep Dives everyday, I think it would be rather useful for my readers to understand my personal lens

Meta Strikes Back!

Following the Llama 4 fiasco and almost 9 months after rebuilding the Meta Superintelligence team (MSL), Meta has finally released a new model: Muse Spark! Just a month ago, The New York Times depicted a pretty unflattering picture of how Meta’s efforts in developing the frontier model are not

Jassy's Defense

Since Andy Jassy became CEO of Amazon on July 5, 2021, the stock has not only noticeably lagged broader benchmarks such as S&P 500 and Nasdaq 100 but also underperformed every single big tech companies in Mag7 (Nvidia not shown in the chart since it transforms the Y-axis

The Jagged Intelligence of Humans

Today’s piece is slightly different from my typical investing musings. I have been thinking about this for the last few days, and I would like to get this off my chest. In a recent episode on “No Priors” podcast, Andrej Karpathy mentioned the following: “…these models still are not,

Man and Machine

For a typical company, analysts and investors evaluate a company’s capital allocation by looking at how the company allocates the cash it generates. Ultimately, there are only five things you can do with your cash flow from operations: a) invest in your own business to grow more in the

The Fat-Tailed Economics of AI

Anthropic yesterday disclosed that their run-rate revenue has surpassed $30 Billion (I appreciate that unlike most people in tech, they didn’t call it ARR). To contextualize how mind boggling the growth is, Anthropic ended 2025 with annual run rate of just $9 Billion which then shot to $19 Billion

"Serious" Era of Software Investing

A couple of weeks ago, Redpoint published an interesting presentation on the state of software industry. It’s a good recap of what has been going on in both the public and private software market. Redpoint pointed out that the SaaS selloff in the last 12 months hasn't

A (Largely) Functioning World!

Programming Note: On every Sunday from now on, I will try to write pieces that are predominantly based on personal experiences which may or may not be loosely connected with investing. If you are reading MBI Deep Dives everyday, I think it would be rather useful for my readers to

"Founder Mode" Complacency

Colossus recently published a chapter from Sebastian Mallaby’s new book on Demis Hassabis titled “The Infinity Machine”. I haven’t read the book, but did read this chapter. It was a riveting read. While I knew DeepMind had second thoughts about staying within Alphabet’s umbrella, I didn’t