Topics: AI | Strategy | Technology | Venture Capital
Tom Wigg and Stephen Byrd argue that AI capability improvements are accelerating exponentially rather than linearly, with major revenue inflection expected in 2026.
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AI capabilities are improving nonlinearly—roughly doubling when training compute rises 10x—which will unlock underappreciated, low‑cost AI use cases across most industries and force investors to distinguish between business models that are disrupted, enabled, or largely immune.
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Stephen Byrd makes a bullish case that, despite current concerns about hyperscalers’ capex and stock performance, token economics are highly attractive for both providers and adopters, creating strong pricing power for those controlling scarce compute and supporting continued infrastructure investment.
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As enterprises move from simple queries to agentic AI across many knowledge workflows, token usage and compute demand should surge, with early fast adopters already seeing massive productivity gains and pointing to a likely revenue inflection for hyperscalers around 2026 as broader adoption catches up.
"We're living in almost two worlds where the fast adopters will show what's possible." - Stephen Byrd