Stephanie Palazzolo, AI reporter at The Information, discusses Meta's AI product strategy and capital allocation on the Latent Space podcast.
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The Information: OpenAI hit $12B ARR as burn rose to $8B
“We had a story yesterday about open AI and how, like, I think they've reached about twelve billion ARR and yeah, but their burn went from like They projected, like, one billion to, like, eight billion or something.”
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Palazzolo: Claude Code leads stayed at Cursor only two weeks
“We know that they went there, they were there for, I think, about two weeks, and they came back.”
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Palazzolo: VCs are growing frustrated with unconventional AI acqui-hire deals
“Talking to investors, I think they're starting to, I think they're kind of over these types of deals. Like, they're like, hey, I mean, like, this is, like, fine, but, like, we don't invest in companies so they can get, like, a weird acquihire situation a coupl…”
Insight
Palazzolo: Unbalanced AI acqui-hires are eroding employee-founder trust
“There's a sense that whenever you join a startup, like, you're gonna be compensated for the risk that you're taking on of joining, like, something that's unproven, and then now you're having these situations where, like, yeah, some people do get rewarded for t…”
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75% of DeepSeek-R1 usage at a major inference provider is for distillation
“I know even whenever, like, the DeepSeek R-One model first came out, one of the major, like, startups in the space was, like, yeah, 75% of the usage that we see for R-One is people trying to distill it into, like, Whatever specific use cast use case they want”
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Early GPT-5 testers report noticeable gains across coding, science, and writing
“And the story that we wrote, we kind of talked about how at least the people that we've talked to who tested it so far have been pretty impressed. They seem to think that it's been, you know, there's been improvements in a number of domains and both like scien…”