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Inside OpenAI’s $500B Valuation | Altimeter’s Largest Bet

34 snips
Aug 27, 2025
Apoorv Agrawal, a Partner at Altimeter focusing on AI and software, shares insights on the firm's massive $10B investment in OpenAI. He discusses the competitive edge of speed in the AI landscape and the shifts from consumer to enterprise applications. The conversation delves into the ongoing talent wars in Silicon Valley and the rise of AI agents outperforming humans. Apoorv also reflects on his experiences as a forward deployed engineer at Palantir, highlighting the importance of innovation in driving value in an evolving tech world.
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INSIGHT

ChatGPT As A Consumer Mass Market

  • ChatGPT became a consumer habit and a brand, not just a product or model.
  • Altimeter projects 3–4B users and ~$70 annual revenue per user, implying ~$200B revenue potential.
INSIGHT

Power Laws Drive Concentrated Bets

  • Venture returns follow extreme power laws where tiny percent of companies generate most profits.
  • Altimeter concentrates capital when they identify a potential power-law winner like OpenAI.
INSIGHT

Speed Is The Primary Moat

  • OpenAI's product velocity — frequent big releases across text, voice, image — creates defensibility.
  • Speed of iteration is the primary moat in consumer AI, per Altimeter.
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