Is AI the new cigarettes? Our VC panel digs into Anthropic’s S-1 | E2356
Jason Calacanis hosts VCs D.A. Wallach, Dave McClure and Ben Black to pick apart Anthropic's S-1. Wallach asks whether AI is the new cigarettes: a hugely profitable, habit-forming product with almost unlimited demand.
The gist
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Anthropic's S-1 shows $16.3 billion in first-half revenue, up 14x, and McClure values it at $1.5 trillion, not $2 to $2.5 trillion.
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Wallach notes corporate customers spend about 0.1% of operating costs on AI and argues the limit is usefulness, not price.
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Ben Black points to 900% net revenue retention and says old software measures like ARR don't fit this new business model.
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Jason compares OpenAI's 50 million paying subscribers with Microsoft 365's 110 million, using a Harmonic chart he recommends for VC research.
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Wallach predicts AI will let top founders raise less money than ever, so small funds writing small checks will win.
This Week in Startups recommends it
"Okay, and everybody go get harmonic.ai, especially if you're in the VC business. Basically, imagine you had a database of every possible deal and a custom-made LLM put together with it. Incredible for research."
▶ Play at 33:13What they recommend · 1 pick
"Okay, and everybody go get harmonic.ai, especially if you're in the VC business. Basically, imagine you had a database of every possible deal and a custom-made LLM put together ..."
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