00:00 Speaker A
We maintain a list of the top, um, AI native software companies. And, um, up until now, and this is going to change pretty soon, they’re all private. Um, and that list is now, we have, we have a top 80 cus uh companies. These are mostly um, kind of western hemisphere companies, not not the China, uh, internet, uh, AI plays. But, um, that list is, um, the valuations on on that list just continue to grow. And, uh, the aggregate valuation of that list is is doubled since February from 45 billion to just over 90 billion. And that has, uh, sorry, that’s the revenue run rate, I should say. And that’s been led by Anthropic, which is just over half of that total revenue of all the companies on that list. And Anthropic’s revenue run rate is up about five X almost since February, just simply amazing.
01:03 Speaker B
Would you consider Anthropic a software company? Because I have to admit, it’s not one that like I think of as a software company. I think of it as something else.
01:13 Speaker A
Yeah, yeah. Yeah, you know, I’m using the term a little bit loosely. People don’t call it a software company, but um, you know, we we cover it at Macquari, and we cover data centers, we cover semis, we cover physical infrastructure, energy. So I’m making the distinction. these companies they they actually are software companies. Um, it’s not common parlance, but that’s the distinction we’re making. They they run stacks in the cloud. They use the hyper scalers. They’re not, you know, they’re not from Mars, they don’t run alien stacks. They run typical software stacks in the hyper scalers with the exception of the fact that they’re LLM’s get trained and do inferencing on, um, on GPUss as well as CPUs.
02:08 Speaker A
I think with the valuations where they are and and and genuine market confusion about the future of these of these incumbent software vendors. Um, I I think I think it’s a really interesting time to be look at looking at selected software stocks and I I think you, you know, you want to be picky. I’m not I’m not like necessarily forecasting that that the boat is going to rise and, you know, public software evaluations are necessarily going to turn around. There does seem to be some stabilization, but there’s some awfully good values out there.