Azeem Azhar

So if we talk about the point about expanding markets, first of all, I read from an investment bank report a couple of weeks ago that, you know, for open AI to hit its revenue numbers, which are extremely ambitious, maybe a bit foolhardy, it would involve every iPhone user in the world needing to spend, I can't remember the number, 50, 60, $70 a year on these services.

And it's a, it's a shockingly stark calculation.

But it also doesn't make any sense when you think about new technologies that come into the market.

You don't even have to look at general purpose technologies to do that.

Because new technologies that are innovative come in to do something new by their definition.

So it's almost impossible to think about how big the market could become.

Now, the way investors think about this is through an idea of the total addressable market, the TAM, the maximum extent of a particular market.

You think about Google, when it went for its IPO back in 2004, it was five or six years old, they described in their IPO prospectus the TAM, the total addressable market they were serving.

And that TAM was $6 billion.

That is what they're serving.

Well, Google's revenues today are a few hundred billion dollars and the market that they serve is now $600 billion.

Now, if you'd gone back and said, well, it's 2004 and Google needs, you know, $300 billion

It's going to have $300 billion of revenue.

That means that every dollar advertisers are spending on digital advertising today, they'll need to spend 50.

Well, that's impossible.

Well, that's the iPhone and chat GPT calculation that the investment bank did a couple of weeks ago.

Markets expand as we bring in new technologies that do things differently, that introduce efficiencies, that introduce new sources of value creation, new sources of exchange.

Another example of that is Uber or the company that was known at the time as Uber Cab.

So when they launched, they talked about going after a particular high-end market and they said, listen, our TAM, our total addressable market,

is about a billion dollars.