Keep pulling the thread on Clay Pavor.
The AI company Sierra has raised over $1.5 billion in funding.
The AI company Sierra is valued at almost $16 billion.
Sierra works with 40% of the Fortune 50 companies.
Clay Pavor predicts there will be effectively unbounded demand for frontier AI models in high-stakes domains such as coding, science, and legal.
The cost for a token with intelligence equivalent to GPT-4 from early 2023 has decreased by a factor of 300.
Software engineers at Sierra using AI tools like Claude Code, Codex, and an internal agent named Pinecone estimate they are 3 to 20 times more productive.
Clay Pavor has observed top engineers using AI coding tools like Claude Code and Codex spending over $100,000 per year on tokens on a run-rate basis.
Marc Benioff stated that Salesforce spends $300 million per year with Anthropic for its developer teams.
Clay Pavor predicts that the steady-state cost of AI tokens for software engineers will converge closer to 20% of their salary, not 3.8%.
Sierra has raised more than $1.5 billion in funding and is valued at almost $16 billion.
Sierra has changed its engineering interview process to be "AI-native," giving candidates a budget of $150 for tokens to build an application using a coding agent of their choice.
Clay Pavor believes there is an underappreciated and unbounded demand for frontier-level AI intelligence.