Benchmark's AI Bets: Cerebras, Sierra, Legora, Fireworks, Starcloud, Gumloop..

The AI paradigm has fundamentally disrupted traditional venture capital metrics, rendering the "spreadsheet investing" era obsolete. In this new landscape, businesses often scale rapidly without proven unit economics or durable product differentiation, as high inference costs and capital-intensive model training invert historical software golden rules. The rise of AI agents—which shift software value from simple licensing to "intelligence on tap"—further complicates valuation, as companies now command massive contracts by automating complex, white-collar tasks. While frontier labs currently capture significant value, the proliferation of open-source models and distillation processes suggests a future where pricing power may fluctuate. Benchmark partner Ev Randle emphasizes that despite these shifts, the core of successful investing remains backing exceptional entrepreneurs who can navigate these evolving business models and capitalize on the massive liquidity currently entering the ecosystem.