Suds: Invest in whatever extends OpenAI and Anthropic revenue, avoid app layer
Sudarshan "Suds" · AI Agents Are Going Rogue. Should We Be Worried? │Claude vs. Grok, Tesla vs Waymo, Google vs Canva · More or Less Podcast · Sep 4, 2026 · at 32:12
VC Sudarshan 'Suds' explains his AI investment thesis to More or Less hosts Sam and Jessica Lessin, arguing that application layer startups will be replaced by model capabilities.
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“My general working thesis was like, you should probably just invest in anything that Enables or extends like Anthropic and OpenAI's revenue. And then the hedge to that would be open source. So just go over there and the app layer stuff by and large do not enable or extend Anthropic, OpenAI or open source. So I stay away from it.”
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