Matticus_Rex
Joined 8 years ago
Joined 8 years ago
Investment size for software plays is going to drop, and people will still invest for the same reason they do now: solving problems for people is valuable. Marginal costs dropping will bring down a lot of costs in various places, but the software itself is only part of what SaaS provides.
It's not actually clear that subscription users are unprofitable as a group (and the group level is the only important one).
We do know the companies are not currently profitable, because they're open and intentional about that, but that tells us nothing about their margins without infrastructure buildout and investment in training.
A lot of AI haters like Ed Zitron and their readers have refused to update on this. I don't know if any of them have yet, but it'll take a year or two for the idea to fully filter out of their podcasts anyway.