Toby Howell

it actually has reduced the normal language barrier as well, which is fascinating to watch and hypothetically democratizes this tech for a lot of people around the world.

New company formation in the US has been declining for decades.

And so a lot of the bullish figures in the tech space are saying this could totally reverse that trend and allow a flood of new ideas to hit the marketplace as we're actually seeing in the app store right now.

Still, it's undeniable that AI is adding a layer of risk when you are investing in software companies these days, because one, it just does lead to more new competitors hypothetically entering the software markets.

And then two, this maybe is an even bigger risk.

Companies are building software in-house these days rather than buying it.

And again, that's probably not going to, you're not going to in-house build Salesforce unless you are a really, you know, high functioning engineering company, which we actually have seen Klarna do.

They did...

build Salesforce in-house.

But where it leads to revenue pressure is customers test alternatives and then they refuse to pay for upgrades or add-ons.

Like, you know, the smaller features that Salesforce says, hey, you need this.

So like, let's,

let's increase your package here.

Companies will go, we can actually just build that out on ourselves, which hypothetically is going to compress margins over time for these giant software companies that have until this point ate the world.

They've done very well.

They seem to be a bulletproof investment.

Now it looks like they're not so bulletproof.

All right, we're going to take a quick break and come back with my winner of the weekend.

Imagine you wake up one day and a huge solar flare adds an extra hour to each day.

Or maybe your team will double in size overnight.