Tom Tunguz

MARCH 2, 2024

In the past, the bigger the AI model, the better the performance. This is a chart of many recent AI models’ performance according to a broadly accepted benchmark called MMLU. 1 MMLU measures the performance of an AI model compared to a high school student. OpenAI Model Release Date Parameters, B MMLU GPT2 2/14/19 1.5

AI 182

AI Azure ChatGPT Benchmarks 182

Clouded Judgement

OCTOBER 27, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. After the cloud giants reported this week, the timing of the presumed re-acceleration is very much in question. Azure also benefits significantly from their AI services. Last quarter Azure AI was at a $500m run rate.

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

SaaStr

APRIL 3, 2024

As the kickoff to our first fully digital SaaStr AI Day, Jennifer Tejada , the CEO of PagerDuty, chatted with Jason Lemkin, SaaStr CEO and Founder, about navigating the shift to Generative AI and what Artificial Intelligence in SaaS might look like in the next 6 months, as well as years to come. How to Buck Up and Go Long in SaaS?

Generative AI 237

Generative AI AI Technical Review Software Review 237

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. The past twelve months have been relatively turbulent for Cloud founders. What does this mean for Cloud companies? What does this mean for Cloud companies?

Cloud 248

Cloud Payments Software Review Payment Solutions 248

Clouded Judgement

DECEMBER 1, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Couple takeaways for me: 2024 is shaping up to be the “prototype to production” year for AI. A strong data foundation is critical for an effective AI strategy! We’re still in the early days of the cloud.”

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

Tom Tunguz

OCTOBER 22, 2023

On November 8th, I’ll share my 10 Top Trends in Data & AI at the IMPACT Summit. Last year, I covered 9 topics: Cloud data warehouses will process 75% of workloads by 2024. Data workloads segment into in-memory, cloud data warehouse, & cloud data lakes. Metrics layers unify the data stack.

Trends 209

Trends AI Data Cloud 209

Tom Tunguz

APRIL 25, 2023

Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. But the story in this quarter’s reports is AI. Just last week, Epic Systems shared that it was using Azure OpenAI Service to integrate this next generation of AI with its industry-leading EHR software.

AI Search 187

AI Search AI Azure GCP(Google Cloud Platform) 187

Clouded Judgement

JANUARY 26, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. And here is a passage from their earnings transcript talking about AI: Let's spend some time framing the dimensions of this new AI world. … And with regard to Gen AI, the momentum is outstanding. Follow along to stay up to date!

Cloud 161

Cloud Marketplace as a Service AI Subscription 161

Clouded Judgement

JANUARY 12, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. And I do see investors and founders repeating a lot of the mistakes from 2021 today, especially in the AI domain. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date!

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Tom Tunguz

JUNE 25, 2023

Clouds are picking teams in one of the most important dislocations in software. Cloud LLM Infrastructure Microsoft OpenAI Snowflake Nvidia Databricks Mosaic Google Anthropic Oracle Cohere Amazon HuggingFace Microsoft has invested over $10b, plus significant development efforts to work with OpenAI.

Artificial Intelligence 186

Artificial Intelligence AI AWS Cloud 186

Clouded Judgement

OCTOBER 20, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date!

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

NOVEMBER 10, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. When I think about the monetization of AI (and which “layers” monetize first) I’ve always thought it would follow the below order, with each layer lagging the one that comes before it. 2024 will be the year of AI applications!

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Clouded Judgement

APRIL 11, 2024

Q4 earnings season for cloud businesses is now behind us. Who are the real AI winners. We then dipped below the trendline as we hit the period of “cloud optimizations,” and things have started to rebound. net retention and CAC payback). Is Software Rebounding? Are forward estimates “de-risked.”

Cloud 169

Cloud Software Azure AWS 169

SaaS Metrics

SEPTEMBER 25, 2023

Navigating the cloud requires more than just user-friendly interfaces and storage solutions. Enter AI-Driven SaaS Governance—a powerful ally in your security toolbox. What is AI-Driven SaaS Governance? What is AI-Driven SaaS Governance? You need robust security to guard against ever-evolving threats.

Government 52

Government AI Cloud SaaS 52

Tom Tunguz

AUGUST 22, 2023

The Data Center business, which sells to clouds & consumer companies drove nearly all of the growth, surging 141% quarter-over-quarter to $10.3b & nearly 3x annually. AI has become the engine pushing the technology markets forward - both at the infrastructure & software levels. NVDA’s profitability is remarkable.

AI 234

AI Pricing Business Cloud 234

Tom Tunguz

MAY 11, 2023

In the last five major cycles (internet, social, mobile, cloud, web3), startups seized the new technologies of the era to create a distribution advantage. Salesforce catalyzed cloud-delivery & annual subscription model in the enterprise, upending decades of selling software with perpetual licenses. AI enables ABM-at-scale.

AI Search 156

AI Search AI Scale Cloud 156

Tom Tunguz

FEBRUARY 13, 2023

AI companies] have a real use case for the cloud which is somewhat different than what we see from some other companies. Today, our largest R2 customer is another AI company using us for exactly the purpose of being a neutral place to store their training data.

Cloud 209

Cloud Azure Headcount Software Review 209

Clouded Judgement

MARCH 31, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. Double the price!

Cloud 130

Cloud Sales Hiring AI Headcount 130

SaaStr

SEPTEMBER 26, 2023

How is AI going to impact the software and SaaS landscape of the next couple of years and also the next 5-10 years? Kristina Shen, General Partner at a16z, shares some insights into the present and future of generative AI at this week’s Workshop Wednesday, held every Wednesday at 10 a.m. For B2B Generative AI Apps, Is Less More?

AI 257

AI Generative AI Venture Capital SaaS 257

Andreessen Horowitz

APRIL 5, 2024

They addressed the top concern for CISOs: the impact of generative AI on enterprise security. Here’s what they had to say about the key considerations for technology adoption and strategies CISOs can employ to navigate the rise of AI-driven security solutions: 1. What is the biggest security threat that enterprises face today?

Generative AI 90

Generative AI AI Enterprise Artificial Intelligence 90

Andreessen Horowitz

AUGUST 11, 2023

From mainframes to PCs, desktop to mobile, unnetworked to internet, and on-prem to cloud and SaaS, technical progress in software tends to follow Schumpeter’s creative destruction : new winners emerge … The post The Race to Capture Value: Cloud Lessons for the AI Era appeared first on Andreessen Horowitz.

AI 73

AI Cloud Mobile Technology 73

Clouded Judgement

AUGUST 11, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. The weakness they called out was from larger cloud-native businesses. And everyone hoping for AI acceleration will need to wait. Private companies like CoreWeave and Lambda (who offer cloud GPUs) are also seeing a big boost.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Tom Tunguz

APRIL 6, 2023

There are 4 questions a startup should ask themselves about building a startup that uses generative AI. The narrative is : AI is a massive platform change that Goldman Sachs projects will increase GDP 300x more than the PC. There are 4 questions startups should ask themselves about building with generative AI. The video is here.

Generative AI 188

Generative AI AI GCP(Google Cloud Platform) Startup 188

IT World

APRIL 19, 2023

Atlassian is rolling out new generative AI capabilities that will be embedded in the company’s entire portfolio of workforce management cloud products and are designed to help both service-based and project-based work teams be more efficient. To read this article in full, please click here

Generative AI 84

Generative AI AI Cloud ChatGPT 84

Clouded Judgement

OCTOBER 13, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Some of the optimism for longer term budget growth comes from AI/LLM spend. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date! consensus and +3.7% YoY in Aug Core CPI 4.1% consensus and +4.3%

Cloud 169

Cloud Artificial Intelligence Subscription Payment Features 169

Clouded Judgement

APRIL 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. On last quarters earning call Microsoft really emphasized the weakening demand environment for Azure / Cloud as optimizations picked up. ” What?!

Cloud 130

Cloud Azure AWS AI Search 130

Tom Tunguz

MAY 15, 2023

A product manager today faces a key architectural question with AI : to use a small language model or a large language model? The pace of innovation in the field clouds the answer. the company has no plan/interest to staff a team to manage AI infrastructure or develop deep machine learning experience / expertise in-house.

Artificial Intelligence 178

Artificial Intelligence AI Machine Learning Scale 178

Tom Tunguz

FEBRUARY 1, 2023

In his most recent earnings conference call, Microsoft’s Satya Nadella said “Every product of Microsoft will have some of the same AI capabilities to completely transform the product.” ” Today, Microsoft Teams launched AI features in Teams for a fee. Mobile, cloud, social - startups led each of those waves.

AI 167

AI Machine Learning Artificial Intelligence Innovation 167

Clouded Judgement

APRIL 5, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date! Subscribe now Hype Rounds vs Fundamental Rounds The show Silicon Valley is one of my favorites - just so many nuggets of humor in that show. This list goes on.

Cloud 161

Cloud Scale Pricing Revenue 161

How To Buy Saas

APRIL 15, 2024

Will you be prepared for the SaaS AI revolution? Companies providing software as a service are under intense pressure to innovate since the global market for cloud services is projected to reach about $680 billion in 2024. More than 70% of SaaS companies are increasing their spending on AI, according to studies.

AI 52

AI Artificial Intelligence Strategy Technical Review 52

Tom Tunguz

OCTOBER 19, 2023

Machine learning’s demand for data has accelerated this movement because AI needs data to function. Security systems govern access to databases akin to secrets management & identity access management solutions do in the cloud. Twenty years ago, the data team meant managing centralized BI & producing analysis in Excel.

Software Engineering 158

Software Engineering Engineering AI Data 158

Clouded Judgement

JULY 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. ” Then at AWS Summit they called out “Your data is your differentiator when it comes to Generative AI.”

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

SaaStr

JANUARY 3, 2024

” The Intersection of AI and Security It’s going to get a bit harder for CEOs and CTOs to maintain security and compliance going into 2024. “You’re seeing data breaches happen all the time,” Shrav said. Shrav sees security and AI as the two biggest faces in software for the next decade.

AI 148

AI SMB compliance Sales Hiring 148

Clouded Judgement

JUNE 2, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. My sense is the market really only cares about one thing right now (putting aside AI hype…) Are forward estimates going up or down? Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date! Dispersion!

Cloud 130

Cloud Trends SMB Subscription 130

Clouded Judgement

JUNE 9, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Usage on Snowflake is driven by queries run on Snowflake Azure: Neutral Tone With Strength in AI Overall I’d characterize Azure’s quarter as a net positive. They were also more constructive on cloud optimizations bottoming.

Trends 130

Trends Cloud Azure AWS 130