Alex Sacerdote of Whale Rock Capital Management discusses user adoption and penetration across major foundation model providers.
Assertion Not checkable as stated
Sacerdote: AI coding tools represent a $500B market opportunity
“And if you think about how many coders there are in the world, twenty million, you've got a half a trillion dollar market just from coding alone.”
Prediction Not checkable as stated
Sacerdote: Enterprise AI adoption will reach 15% within four years
“You're gonna go from 10 bips to one, to two or three percent, to five percent, to 15% in the next four years”
Prediction Not checkable as stated
Sacerdote: Top two or three AI foundation model companies will maintain dominance
“There's like, 50 companies trying to do that, and they all have fallen away, and two or three have emerged at the top. And there's a lot of reasons to think they will continue to hold their position.”
Prediction Not checkable as stated
Sacerdote: AI market will reach $3T to $5T
“You know, we just said cloud, you know, maybe cloud's eight hundred billion. This might be, you know, we now think three to five, but there's higher risk, higher reward.”
Disclosure
Whale Rock sold almost all application software and went net short
“We basically sold almost all of our software, almost all of our application software. We still have one or two small ones, but entering this year, we were actually net, net short, and it really helped us in the first quarter.”
Assertion Not checkable as stated
Sacerdote: Supply chain is 30% short across DRAM, NAND, and PCBs
“We're already short, you know, the DRAM market, the NAND market, the PCB, we're already, like, 30, we're 30% short all these things as we are now.”