“The existing markets are getting bigger, and AI is also coming to new markets like healthcare and legal, which, let's be frank, were terrible markets for software before this.”
quote is from the automated transcript, cleaned for reading:
filler sounds and stutters are removed, nothing is rephrased. names can be misheard
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More from Rory O'Driscoll
PredictionOpen · timeframe Dec 2032
O'Driscoll: OpenAI and Anthropic Revenues Won't Match AI CapEx Until 2031-2032
“The stunning thing is it takes until 2031 or 2032 before
The revenue from those two companies surpasses the total capex.”
O'Driscoll: Foundation model makers will probably continue capturing the delta value
“The truth is they are the apex predator of this distribution. They are the guys who have taken the value, the delta value, and probably will continue to do so under those forecasts.”
O'Driscoll: VCs Are Hedging Between Foundation Models and SaaS
“No one knows the answer and most VCs are betting both ways. They're chucking a bunch of money in at a modest 300 or six hundred billion pre at Antropic. And at the same time, they're doing a whole bunch of investments that only make sense if in fact there is r…”
O'Driscoll: One-Third of Plain Vanilla SaaS Is Threatened by AI
“And then there's about a third way you're absolutely threatened, where you are typically what we call plain vanilla SaaS. You automate a workflow, and then you either got to move and survive, or you're going to be dead, right?”
O'Driscoll: AI apps will create massive public market outcomes within 15 years.
“But then I still think there are going to be over the next 1015 years, just as Microsoft dominated the client server and PC age and was the operating system, but there were hundreds of client server apps companies that achieved successful and great outcomes in…”
O'Driscoll: OpenAI, Anthropic, and Gemini will capture oligopolistic foundation model profits.
“There's no doubt that a two-way or a three-way dominance of the foundation model category will be between OpenAI and Tropic and Gemini with maybe some other players. They will dominate that. They probably will have, you know, oligopolistic profits.”
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