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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming?

SaaStr

Even leaders like Canva that were always cheap raised prices dramatically for their enterprise edition. The bottom line is SaaS got very expensive the past 2-3 years. As growth slowed, almost everyone looked to price increases. Those days may be over. AI, if nothing else, may put pricing pressure on SaaS. But it could soon turn deflationary.

AWS 281
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Top 10 Trends for Data in 2024

Tom Tunguz

LLMs Transform the Stack : Large language models transform data in many ways. If you’re curious about the evolution of the LLM stack or the requirements to build a product with LLMs, please see Theory’s series on the topic here called From Model to Machine.

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The Battle for AI Gravity

Tom Tunguz

Most large-scale AI products have yet to be built. Many enterprises are in the process of testing. Then we began to add routers, mixtures of experts, & small language models. ” Better for large enterprises to wait until there’s a reference architecture that’s been proven to work.

AI 306
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How Shopify Implements AI Across Sales and Product with Mike Tamir, Head of AI at Shopify, and Rudina Seseri, Managing Partner at Glasswing Ventures

SaaStr

At SaaStr AI Day , Mike Tamir, Head of AI at Shopify, and Rudina Seseri, founder and Managing Partner at Glasswing Ventures, level-set about where we are in the cycle for Enterprises adopting AI and the critical work being done at Shopify to leverage AI and solve real problems. The future of Enterprise is “Ambient AI.”

AI Search 278
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Picking Teams in AI

Tom Tunguz

Perhaps not coincidentally, Snowflake announced a deepened partnership with Nvidia to offer customers models & training on Nvidia’s Nemo platform. Most major cloud players have picked an LLM partner & perhaps will choose multiple. Clouds are picking teams in one of the most important dislocations in software.

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Clouded Judgement 2.7.25 - "Group + Triage" AI Systems

Clouded Judgement

These seem like perfect fits for LLM based applicatiosn. Perfect for a LLM! They each have some of the largest cloud businesses in the world in AWS, Azure and Google Cloud respectively. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Many of them AI based.

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Thanks to Calendly, Drift, Reprise, Secureframe, and Shift Paradigm for Sponsoring SaaStr Annual 2022!

SaaStr

Drift brings Conversational Marketing, Conversational Sales and Conversational Service into a single platform that integrates chat, email and video and powers personalized experiences with artificial intelligence (AI) at all stages of the customer journey.