Sep. 13 at 2:34 PM
The leading AI labs are in a tight spot. They are pleading for a market slowdown, caught between astronomical capex burn and open-source models that are closing the capability gap at a fraction of the cost.
Notice who isn't asking for a pause: the hyperscalers. Backed by massive balance sheets and diversified cash flows, they can subsidize their AI efforts indefinitely.
$META $GOOGL
This dynamic is wildly bullish for enterprise SaaS. Application-layer companies spent zero dollars training these foundation models, yet they get to reap the rewards. They are integrating world-class LLMs directly into their existing products, driving immediate margin expansion and features upgrades without taking on infrastructure risk.
The infrastructure providers are fighting a costly war of attrition. The software layer is just collecting the dividend.
Long SaaS.
$NOW $IGV