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AI Reaccelerating Cloud Growth

Tom Tunguz

I’ve been tracking the growth rates of these companies and product lines for the last 18 months to develop a broad gauge of enterprise buying patterns after the downturn. This growth is fueled by AI workloads. ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.

AI Search 312
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What Happens When AI Performance Asymptotes?

Tom Tunguz

In the past, the bigger the AI model, the better the performance. This is a chart of many recent AI models’ performance according to a broadly accepted benchmark called MMLU. 1 MMLU measures the performance of an AI model compared to a high school student. OpenAI Model Release Date Parameters, B MMLU GPT2 2/14/19 1.5

AI 249
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The 4 Questions Startups Should Ask Themselves about Building with Generative AI

Tom Tunguz

There are 4 questions a startup should ask themselves about building a startup that uses generative AI. The narrative is : AI is a massive platform change that Goldman Sachs projects will increase GDP 300x more than the PC. There are 4 questions startups should ask themselves about building with generative AI. The video is here.

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Signs We've Touched the Bottom

Tom Tunguz

Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. There are two forces in tension : overall cost reduction efforts by companies & the desire to invest in AI. The desire for AI is broad. The acceleration is really quite broad.

Azure 238
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Microsoft as a Mirror - What We Can Expect for SaaS in 2023

Tom Tunguz

We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Segment Expected Growth Productivity 12% Office Commercial 6% Office On-Premise -25% LinkedIn 5% Dynamics 13% Intelligent Cloud 18% Azure 26% Server -3% Services -3% 2. At some point, the optimizations will end.

Azure 256
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From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

SaaStr

” The Early Days: Finding the First Customers Databricks started with a unique advantage: Spark, the open-source project developed by its founders, was already widely adopted. Because thats how their customerswho were used to AWS, Azure, and GCP pricingexpected to buy. From the early days, we had a more technical sales team.”

Scale 182
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Thanks to Calendly, Drift, Reprise, Secureframe, and Shift Paradigm for Sponsoring SaaStr Annual 2022!

SaaStr

Drift brings Conversational Marketing, Conversational Sales and Conversational Service into a single platform that integrates chat, email and video and powers personalized experiences with artificial intelligence (AI) at all stages of the customer journey.