The advent of foundation models is creating an "after SaaS" era, enabling a new generation of software companies like AI coding assistant Cursor to achieve unprecedentedly rapid growth.
There is a renaissance in "intelligent hardware," where companies tackling physical-world problems (e.g., SpaceX, Anduril, Nudge) can build more durable moats and experience accelerating revenue growth at scale.
AI is transforming science into engineering, creating massive opportunities in fields like drug discovery (Isomorphic Labs), materials science (Periodic), and neurotechnology (Nudge) by making previously intractable problems solvable.
A high-conviction, concentrated investment strategy focused on "end of one" founders and fundamental technological shifts (like Thrive's early, bold investment in OpenAI) is critical for capturing outlier returns in a power-law-driven market.
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Concerns Raised
Geopolitical risk from the heavy concentration of advanced semiconductor manufacturing in Taiwan and Korea.
High initial capital costs and complexity associated with building successful hardware companies.
Opportunities Identified
The emergence of hyper-growth AI-native software companies in the "after SaaS" era.
Investing in "intelligent hardware" companies that can build durable moats and address large physical-world markets.
Applying AI to solve fundamental problems in science, particularly in life sciences and materials discovery.
The onshoring of critical technology manufacturing due to geopolitical pressures.