The Broadening AI Opportunity: Implications for SaaS and Private Markets

The report highlights that while AI adoption is growing, the value generated is beginning to spread beyond frontier AI labs and semiconductors. Investors should prioritize resilient software, AI infrastructure, and energy-related investments while avoiding generic legacy software.

Key Takeaways

• 1.AI token consumption and penetration continue to grow, but value is shifting away from frontier AI labs toward broader infrastructure and resilient SaaS.
• 2.Frontier AI labs face headwinds from rising data center construction costs, regulatory scrutiny, and enterprise cost rationalization.
• 3.Within private markets, bifurcation is intensifying, favoring cybersecurity, data infrastructure, and energy-related assets over generic legacy software.

Table of Contents

• The broadening AI opportunity: Implications for SaaS and private markets
• Nine months on: What we got right and what we got wrong
• Token growth should continue, but value may start to spread
• Implications to the AI value chain
• Implications for private markets—intensifying bifurcation within asset classes
• Appendix

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