INSUBCONTINENT EXCLUSIVE:
intelligence (AI) startups, and, more specifically, how those companies perform as businesses
the notion that one oft-discussedand well-funded category of venture-backed startup might sport materially less attractive economics than we
expected captured our attention.The Andreessen Horowitz (a16z) perspective is straightforward, arguing that AI-focused companies have lesser
product differentiation from competing companies when compared to software concerns
SaaS companies, leaving the latter category of technology company still atop the valuation hierarchy.This matters, given the amount of
capital that AI-focused startups have raised.Is a16z correct about AI gross margins? I wanted to find out
So this week I spoke to a number of investors from firms that have made AI-focused bets to get a handle on their views
Read the full a16z piece, mind
The first dealt with margins themselves, the second dealt with resulting valuations and, finally, we asked about their current optimism
interval regarding AI-focused companies.
