What I'm watching in AI×GTM

5 Interesting Learnings from Klaviyo at $1.2 Billion in ARR: 32% Growth, 110% NRR, and Somehow Only 4x Revenue

SaaS dead, dying or underpriced? Feels like a stock pickers market with attractive opportunities to me

• Klaviyo trading at 4-5x revenue despite 32% growth, 110% NRR, and profitability—potentially most mispriced public B2B company or signal of 'New Normal' for SaaS valuations
• NRR improved to 110% while scaling to $1.2B ARR by doubling $1M+ ARR customers and growing $50K+ customers 37% YoY—rare upmarket expansion success at scale
• International revenue grew 42% YoY and now represents 33%+ of business, breaking 'Shopify add-on' narrative with regional hubs in Dublin and Singapore

The slow decay of growth (and how to avoid it)

• Growth decay is a common pattern affecting successful PLG companies including Ramp, Notion, Airtable, Figma, Miro, and Canva
• There are documented examples of companies that successfully reversed growth deceleration
• Newsletter promises new data and real-world frameworks for addressing growth plateau

Mythos, Muse, and the Opportunity Cost of Compute

brilliant read

• Reasoning models (o1) fundamentally break Aggregation Theory by reintroducing marginal costs - compute scales with usage, unlike internet-era products
• Hyperscalers' business models were built on zero marginal cost assumption; AI inference costs challenge this foundation requiring new economic models
• The 2010s internet era may be viewed as anomalous 'naive time' - technology returning to capital-intensive, high-marginal-cost paradigm of pre-internet era

AI Weekly Issue #481: Musk wants Altman fired, Anthropic passes OpenAI, Meta goes closed

• Anthropic overtook OpenAI in revenue ($30B vs $24B run rate) driven by enterprise customers, doubling million-dollar accounts in under two months
• Meta abandoned open-source AI strategy with first proprietary model under Superintelligence Labs, reversing Llama approach
• AI legal/regulatory activity intensifying: Musk-Altman litigation escalating, Hollywood writers secured four-year AI protections