Investor thesis: output is decoupling from headcount as compute replaces hiring
McDonaghMatthew · x · 2026-11-05
Investor Matthew McDonagh lays out his investment thesis: knowledge businesses once scaled only by hiring—more analysts, more support, more engineering—but a growing share of that work will now be delivered through compute. People still set objectives and exercise judgment, yet the link between output and headcount is permanently changed. Spending will shift toward the systems delivering capacity, making the "intelligence" ecosystem—applications, models, and infrastructure—the most compelling long-term investment opportunity.
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