Better Yes, But Show Me The Revenue
Net, net, OpenAI’s o1 preview is better than I expected. However, the leading frontier LLMs need to become embedded in more commercial applications in order to generate meaningful Revenue and to justify the lofty “AI” valuations that MSFT, NVDA and others have enjoyed.
It is reasonable to expect this generation of frontier models to drive operating leverage as it relates to shifting portions of the software development process (QA in particular) to AI Agents, which of course will provide operating margin lift to companies that know how to leverage this capability.