VC wonders if LLMs are the last dance for venture economics, leaving only services businesses
StewartalsopIII · x · 2026-10-22
Investor Stewart Alsop III asks whether the LLM wave is "the last dance for venture-style economics," suggesting the only businesses left may be services businesses.
The remark taps a live debate in AI venture circles: high compute costs at the model layer and thin moats at the application layer may break the traditional burn-for-growth VC playbook, pushing many AI companies toward headcount-based services economics. Opinion, but a notable non-consensus take.
More from AGI Musings
- Turing Post: From reasoning to decision models — can AI build better judgment? — TheTuringPost · 2026-10-22
- Barclays cuts 5,000 jobs in AI-led efficiency drive — DanielLockyer · 2026-10-22
- flowersslop: Skynet is one of the least scary ways AI could wipe us out — flowersslop · 2026-10-22
- Ex-Zalando AI lead: users don't want more AI, they want things handled with trust — ilparone · 2026-10-22
- "Intelligence is compute" conflates concepts, warns of cognitive atrophy risk — tobias_rees · 2026-10-22
- fchollet: Believing AGI doom hits in months is a sign you're in a death cult — fchollet · 2026-10-22