Smash Notes

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

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. Worms had already cost billions of dollars in economic damage and had taken out critical infrastructure.

A Windows 95 machine connected to the internet during installation was infected before the installer finished, with no time to patch it. A new technology that changes how computers run always changes the security posture, and the industry is in another moment of the same kind. A few years of mayhem come first, breaches cause real issues, and then the industry evolves. The usual test is whether the good guys can spend more money than the bad guys. When the answer is yes, which is typically the case, a tactical solution shows up. He thinks the same will hold for AI, and treats the vulnerabilities showing up as a good sign because somebody used the model to make things safer by pointing out the vulnerabilities.

The net impact, in his view, is that software will be much more secure because AI is also securing it.

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

More from this episode

  1. What Are the Four Venture Investing Mindsets?Martin Casado names four mindsets people bring to venture and private-market tech investing: a traditional finance mindset, productive investors, frontier…
  2. What Does Martin Casado Think of Network Effects?Martin Casado calls the fuss over network effects a personal annoyance and a pedantic habit. Defensibility is not really worth talking about most of the time.
  3. Why Do Traditional Investors Miss Disruptive Technology?Martin Casado says traditional investors miss disruptive technology because they judge revenue quality before anyone knows the pricing model.
  4. How Do Frontier AI Models Keep Pricing Power?Martin Casado says frontier AI models keep pricing power because the market is still large and growing, and buyers want the smartest model.
  5. Why Do Startups Always Buy the Smartest AI Model?Martin Casado says two competing startups never pick a dumber model to get ahead.
  6. What Is the Mythical Man Month?Martin Casado says the mythical man month means you cannot increase the speed of engineering by adding people.
  7. What Was Larry Page Asked About Orbital Compute?Martin Casado heard that someone asked Larry Page how much compute will be orbital.
  8. What Does Martin Casado Believe About Private Market Money?Martin Casado believes money put into private markets grows private markets.
  9. How Did the Cursor Deal Come Together?Martin Casado says the Cursor deal came together off a raise that was already closing, once building models required compute few people have.
  10. Has Software Become a Capital Problem?Martin Casado believes software has become a capital problem, and he treats the shift as industrial-revolution scale.

People

More answers like this

More with Martin Casado

Related episodes

Plays from this note through the rest of the episode.

Weekly highlights

One letter a week.

The notes worth hearing, with the minute they were said.