Anish Acharya

OK, if you look at the distortion from 2021, you essentially had this indirect subsidy of Google and Facebook.

So you would invest in a fintech company, you would give them $10 million, they would go spend $8 million on Google ads and Facebook ads.

So there's a subsidy that was happening that were sort of these empty calories for the startup.

If instead you look at the form of subsidy that happens today, what it typically means is zero margin or negative gross margin credits for the user to try the product.

So these things tend to be a drag, but these are actually very healthy calories for the companies because out of that you get conversion into high paying users and many of whom are actual power users.

So I do think that the blended margin story for AI native companies tends to be worse.

But if you look at the overall sort of form of distortion that's happening, it's a much better one than we had five years ago.

Yeah, I love that.

100% correct.

Yes.

Yes, I also think that power users are so much more powerful than they ever have been.

Like Andrew Chen used to say pre-AI, and I love this, like power users are just users.

And it was true.

Because even if they got 100x more value, they typically didn't pay 100x more.

Like you look at Spotify, great European company, the very best Spotify SKU with the highest bit rate music, totally lossless, all the pods, all the videos, family plan, everything was $20, $25 a month.

So there is a belief that the price ceiling for consumer products mass market was $20 to $25 a month.

You look at Grok Heavy, it's $300 a month.

ChachiBT, $200 a month.

Gemini Ultra, $250 a month.

So we're seeing 10x higher prices paid and you have consumption revenue on top of it.