Dylan Patel

Cognition, Windsurf, Replit, Codex, OpenAI Codex, that's run rating at $5, $6 billion now for the Q4 of this year.

That's a 10x, right?

And when you look at, hey, what's the TAM of software agents?

Is it the $2 trillion of wages you pay people or is it something beyond that?

Because every company in the world will now be able to develop software more.

No question Microsoft takes a slice of that, but you've gone from near 100% or certainly way above 50% to sub 25% market share in just one year.

What is the sort of confidence that people can get that Microsoft will be-

unpacking sort of what you said, there's two views of the world, right?

One is that models, there's so many different models out there.

Open source exists.

There will be differences between the models that will drive some level of, you know, who wins and who doesn't.

But the scaffolding is what enables you to win.

The other view is that actually

Models are the key IP.

And yes, everyone's in a tight race.

And there's some, hey, I can use Anthropic or OpenAI.

And you can see this in the revenue charts, right?

OpenAI's revenue started skyrocketing once they finally had a code model similar capabilities to Anthropic, although in different ways.

there's a view that like the model companies are actually the ones that garner all the margin, right?

Because, you know, if you look across this year, at least on Anthropic, their gross margins on inference went from, you know, well below 40% to north of 60, right?