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Back to Martin Casado on Frontier Model Economics, AI's Slowdown, and the Cursor Deal, with Martin Casado.

Has Software Become a Capital Problem?

Martin Casado believes software has become a capital problem, and he treats the shift as industrial-revolution scale.

The industrial revolution moved the world from a zero-sum contest to a non-zero-sum one, where net new value is created. He sees the same kind of shift now. Solving problems used to mean very complex engineering that did not scale, was very tough, and then had to be maintained, which is why all software has always sucked. He does not know about the real world yet and thinks it will get there, but the work has turned into a capital resourcing problem. Capital allocators are in a strategic position to drive the future more directly than before, because a scale-up capital game is what makes the shift happen. He does not believe private markets have limited TAM. He thinks they have unlimited TAM, and the more money that goes into them, the more value that would be created.

The job is fun because allocators sit in a privileged spot, key to the innovation chain.

Grokipedia·Martin Casado

Transcript

Martin Casado on Frontier Model Economics, AI's Slowdown, and the Cursor Deal ·

Invest Like the Best with Patrick O'Shaughnessy

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  6. Was Early Internet Security Worse Than Now?Martin Casado lived through the early internet on the ground, with formal studies in security, and the era was way worse than the breaches happening now.
  7. What Is the Mythical Man Month?Martin Casado says the mythical man month means you cannot increase the speed of engineering by adding people.
  8. What Was Larry Page Asked About Orbital Compute?Martin Casado heard that someone asked Larry Page how much compute will be orbital.
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