Bill Gurley

I saw an interesting interview between Friedberg and Sundar where he asked him if he had ever read The Intervasive Dilemma, and he admitted not.

So...

When your company's crushing it, those kind of things, those were for somebody else.

But yeah, maybe now I should read it.

I think it's tough for the reason I mentioned before.

You might be getting a million dollar deal and it has negative gross margin for you.

But on the flip side, you're looking at any AI model that's two generations old sells for one one hundredth the price per token as today's.

And I think you could probably have confidence that you're going to price optimize later.

One of the interesting things that partners at Benchmark have been looking at and assessing is when companies move to optimization mode and how they make decisions differently once they do that than when they're in experimentation and sandbox mode.

And with the amount of capital you have, you can run sandbox mode longer before you go to optimization mode.

And we saw this on the internet.

I like to highlight that the first two years, everyone built on Sun and Oracle.

Everyone.

All the startups did.

And five, six years in, no one did.

That's why it's so important to pay attention to that shift.

I think there's a super interesting development in the China situation that will be very, very fascinating to watch.

And that is when DeepSeek hit and took off.

We were all focused on how the U.S.

reacted, the U.S.