David Kwon

General Partner @AbstractVC

[General Compute @general_compute]

Our heterogeneous cloud just got better. We're announcing a cluster scale deployment of @positron_ai as our next partner.

We believe demand for fast inference will outstrip supply for the next decade. Our bet on Positron is another step towards getting fast inference for opensource models into builders' hands.

Hardware goes live Q1 2027.

Thanks to @mitesh711, @trsohmers and the whole Positron team! We're excited for this partnership.

LFG!

[David Kwon @dkwon98]

cc @FinnMurphy12

[David Kwon @dkwon98]

hereby coining a round's third tranche as the "eunuch tranche"

[David Kwon @dkwon98]

@jceyang is it though

[David Kwon @dkwon98]

When you’re competing for a deal with a South Korean, this is who you’re competing against

[Negligible Capital @negligible_cap]

They sure start the kids young over in a Korea. Culturally engrained

[David Kwon @dkwon98]

@stevehaners_ @adinapak_ crazy comment

[David Kwon @dkwon98]

@maggielove_ wonderful spot, just a bit busy

[David Kwon @dkwon98]

@surfinmars24 3B to be accurate

[David Kwon @dkwon98]

@FPuklowski I needed to google what this meant unfortunately

[David Kwon @dkwon98]

@chongz

[David Kwon @dkwon98]

@armin_kohan 🫡

[David Kwon @dkwon98]

@MiSunKw shoutout

[David Kwon @dkwon98]

@chan_akireddy it is the year 4 AC (After ChatGPT)

[David Kwon @dkwon98]

@semiDL Volantis == have your cake and eat it too

[David Kwon @dkwon98]

@barrnanas connor roy was interested in politics at a very young age

[David Kwon @dkwon98]

Koreans were grown in a lab to perfect the art of capitalism

[David Kwon @dkwon98]

https://t.co/viasP8Mfvc

[David Kwon @dkwon98]

Separately, revenue reporting in this whole industry is very insincere, and we should do away with revenue multiples and replace them with gross profit multiples

Valuing a data business' annualized GMV with a 25% take rate or an inference co's annualized revenue with 20% gross margins in the same way you would 80% software margin ARR is just full cope

[David Kwon @dkwon98]

it is possible to retweet someone's thoughts, like I'm doing here

[Chamath Palihapitiya @chamath]

VC investors have enabled the AI industry to bastardize revenue reporting.

In the 2010s, SaaS companies popularized reporting the metric of Annual Run Rate because it was a reliable measure of long term, contractual revenues into the future. The key is that the revenues are contracted and guaranteed thru the contract life hence why forecasting it forward is appropriate.

VCs have taken this to mean Annualized Run Rate when AI is concerned and where you take transactional/API revenue from the last month (or even last week in some cases) and forecast it forward.

It’s insane that investors have enabled this to happen but it’s happened.

[David Kwon @dkwon98]

@tanayj Can't wait to see the Earnings Before Interest, Taxes, D&A, Model Training, Peptides, Matcha, and Arsicault

[David Kwon @dkwon98]

Separately, revenue reporting in this whole industry is very insincere, and we should do away with revenue multiples and replace them with gross profit multiples

Valuing a data business' annualized GMV with a 25% take rate or an inference co's annualized revenue with 20% gross margins in the same way you would 80% software margin ARR is just full cope

[David Kwon @dkwon98]

With neoclouds rerating down, the revenue multiples for some of these inference businesses seem really silly

[David Kwon @dkwon98]

@nikhilvnamburi One is a land owner, the other is a renter. Sometimes you’re underwater on your mortgage, or rates change. The ones who traverse this correctly will own the keys to the compute kingdom, and that seems cool to me

[David Kwon @dkwon98]

With neoclouds rerating down, the revenue multiples for some of these inference businesses seem really silly