venture and tech insights
The primary opportunity for startups is not to replace incumbent software companies—it’s to go after automatable pools of work.
Sonya Huang • Generative AI’s Act O1
Earlier this year we met with our Limited Partners. Their top question was “will the AI transition destroy your existing cloud companies?”
We began with a strong default of “no.” The classic battle between startups and incumbents is a horse race between startups building distribution and incumbents building product. Can the young companies with... See more
We began with a strong default of “no.” The classic battle between startups and incumbents is a horse race between startups building distribution and incumbents building product. Can the young companies with... See more
Sonya Huang • Generative AI’s Act O1
With Generative AI’s budding reasoning capabilities, a new class of agentic applications is starting to emerge.
What shape do these application layer companies take? Interestingly, these companies look different than their cloud predecessors:
What shape do these application layer companies take? Interestingly, these companies look different than their cloud predecessors:
- Cloud companies targeted the software profit pool. AI companies target the services profit pool.
- Cloud
Sonya Huang • Generative AI’s Act O1
the market can remain irrational longer than you can remain solvent.
