Search results for Theory Ventures
AI & Enterprise
AI model economics shift as cost recovery for cutting-edge models gets harder
The share of AI use accounted for by cost-effective models is rising as demand concentrates on cheaper systems with slightly lower performance rather than top-tier models. Venture capitalist Tomasz Tunguz highlighted data showing most tokens on OpenRouter are handled by non-top models that are far cheaper. He said gains among leading models and narrowing performance gaps, along with buyer price sensitivity and vendor lock-in, may make it increasingly difficult to recoup training costs that can run into hundreds of millions of dollars.
AI & Enterprise
Can AWS grow into a $1 trillion revenue business?
Amazon Web Services could potentially grow into a $1 trillion revenue business, Amazon CEO Andy Jassy said after the company reported second-quarter results. AWS posted an annualised revenue run rate of $169 billion in the quarter, with revenue growth accelerating to 36.7 percent. Theory Ventures founder Tomasz Tunguz said whether AWS reaches $1 trillion depends on how much corporate customers use AI, while heavy investment and borrowing could become a burden if adoption slows.
Industry
SpaceX-Tesla merger talks resurface ahead of Nasdaq listing
Talk of a possible merger between SpaceX and Tesla has resurfaced as SpaceX nears a Nasdaq listing. CNBC reported Elon Musk has discussed combining the companies with close associates, and that a view is spreading inside Tesla that such a deal could eventually happen. SpaceX, valued at $1.25 trillion in the private market after a merger with xAI, is expected to begin Nasdaq trading in two weeks. The companies already share resources, board ties and AI-related investment.