Pod: Good, Good enough or God,enough!

The full Monday note can always be found at www.blindsquirrelmacro.com

The Monday Note:

Good, Good enough or God, enough!

Show Note Visuals:

Link to Goldman Sachs AI piece

It’s true that the online search and advertising giants are already pointing to AI’s role in increasing customer ad spend and eyeball-targeting efficiency, but the associated AI capex is being amortized over 15 years. Is this a case of smoke and mirrors?

The plucky AI startups aspiring to compete in ‘Big Search’ cannot point to ‘early wins’ from the enhancement of existing revenue streams and are still struggling to articulate clearly what the ‘multiple revenue streams’ of the future might be. Maybe using Perplexity to query the business model of Perplexity is a bit of a cheap shot. Apologies, Maybe 😉.

The image above shows the AI’s summary of (right hand side) and extracted trade idea (inset) from my report on lithium miners from last week.

Problem identified, neither ‘hot take’ a solution.

Shrill tones from Salesforce CEO Marc Benioff would suggest that enterprise software leaders are seeing some writing on the wall. They are facing an existential threat from a pincer movement of both bundled co-pilots from the hyper-scalers and the emergence of LLM-enabled ‘Personal Software’

Key quote below, but if you have time, listen for 5 minutes from the 44-minute mark.

“I think that there is a foundational massive breakthrough in software engineering that has happened in the last 3 months that people are not paying enough attention to. I was able to build an app for myself in a couple of weeks using AI software engineering tools which previously would have cost $1-2m in seed capital, five people and 12 to 18 months of time to build…” Dave Morin, Offline Ventures.

Semiconductors ($SOXX ETF) versus Cloud / SaaS providers ($WCLD, the Wisdomtree Cloud ETF that we discussed in the 🐿️’s most recent acorn trade and on The Market Huddle with Kevin Muir last week).

Music from Max Slorach. Find him at:

email: maxonsaxentertainment@gmail.com / web: maxonsax.com.au

Thanks for listening!

Squirrel Out!

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