TMTB: WhaleRock's Alex Sacerdote on ILTB
Guest: Alex Sacerdote, Portfolio Manager, Whale Rock Capital Management Invest Like the Best Podcast with Patrick O'Shaughnessy - Youtube
Some good stuff in here…thematic quotes first, then more stock specific read-throughs at the end…
#1 — The Enterprise AI “L Curve”: Less Than 1% Penetrated
Sacerdote: “The enterprise AI or enterprise application AI market is less than 1% penetrated, and we’ve never seen — we talk about S-curves — we call this an L curve, just straight up.”
“Even though 800 million people are using AI, they’re just using AI 1.0, which is like a search engine on steroids. But now with these new primitives — where you have Claude on your computer, linking it in, then you build skills, companies are going to build skills, then true AI bots, then big corporations are going to build much larger. Sundar said it’s 10 bips of the knowledge workers of the world. It’s classic S-curve — these are the tinkerers, then early adopters, then early mainstream. You’re going to go from 10 bips to 1% to 2-3% to 5% to 15% in the next four years.”
“A light switch this year went off in the enterprise where everybody realizes they need to do this now and do it fast. It’s like internet 1.0 — you knew you needed a website in 1998, but it’s hard to build that website.”
“We’re at 10 basis points of people really using AI and we’re already sold out — there’s not enough compute in the world. Anthropic has half of what they need right now, and that’s before this huge take-up. Marc Andreessen said in the next four years, one thing he’s sure of is there’s not going to be enough compute.”
#2 — Code as the True Unlock of AI: The Karpathy Flip