Property AI Report
00:19:33 · Matt Goddard, Mal McCallion
I think it because of this partnership, I think it's a really strong call out of um you know where what the direction of travel is for that. [00:19:41] S0: Yeah. And I like you, I I kind of I look at portals, sorry, at the um um the CRM systems, you know, the the problem seems to be that their kind of unit charge, unit economics were all around seats. So number of seats that they could sell. And now if you're plugging Clawed in, then the number of seats you have to pay for is kind of one, right? If it you know, and that's and that's kind of it. So so I I don't know the confidence that the 12% price share price increase last week kind of um indicates. Suggests there must be something in here, and again, I I I've kind of read it and and couldn't see anything, that said how they're gonna make this more profitable for Salesforce because Salesforce changed their charging model last year, and uh it's it's harking back a little bit.
00:20:27 · Matt Goddard
[00:20:27] S1: Well, it's a year ago, but they um and it's not in this article, but if if you remember way back, basically they they started ch charging for AI conversations, and then within a week they realized that that wasn't well if I get it right way around, it's had the conversations and then flipped it to outcomes, or it was outcomes and then flipped it to conversations, but they moved away from the seats-based pricing at that time, and HubSpot have done something similar recently at the start of the year. So they are moving away from that per seat into much more of a sort of an engagement type approach, and I think that's where the the SaaSpocalypse is going to survive. It's not the the seats approach anymore. It's because of, as you say, for a GenTic, you plug in an MCP, which Salesforce call have got their headless 360 is what they call their MCP. So like if you can start connecting and never have to log in, then why would you be charging seats? And as you say, that share price rising 12% wouldn't be reflective if suddenly everyone's got you know your or your team of uh rain males working on something.
00:21:25 · Mal McCallion
[00:21:25] S0: Yeah, no, it's it's so again kind of referring back to that. So I I think it went from from conversations to outcomes. I think outcomes has been the kind of thing, but but I don't know anybody that really kind of wants sorry, I know some people who do want that, but but I I don't think everybody's moved wholesale across because again, you know, that that would be a huge drop in a drop in price. But but you you're right, you know, in terms of direction of travel, absolutely, yeah. They're moving towards uh an understanding or a different business model that does reflect that. But uh but yeah, I I it's it's more the this yeah, I I I I still don't see how I would be twelve percent more confident that this business is going to make as Much money, if not more money, than they're going to do before the announcement. But again, as as you say, the the SASPocalypse, you know, um sounds like it's um it's on hold for now. How many horse people of the SASPocalypse there are? But uh but yes, it's it is an interesting deal. Um, presumably HubSphore is now gonna have to go to Chat GPT OpenAI uh and they're all gonna kind of buddy up like that. But uh but yeah, it's um it's it's a it's an interesting move. Interesting to see Dario actually um still alive. I haven't seen Dario Amaday in anything for a long time. He's been kind of kept away. But yeah, he's done the um he's done the press around this and looks very happy about it as well. All right, um that's um some a little bit more of our AI and tech news. Um let's dive into probably I don't know, one of the biggest stories of the week, which is um Hugging Face, which we spoke about a few weeks ago because it was basically the target of an open AI agent, agentic AI attack, because it it hosts a number of um benchmarks that uh the open AI bot wanted to hack. It is on the verge of being acquired by NVIDIA. So again, NVIDIA, for those not familiar, are the the microcheck GPU providers to pretty much everybody in the whole of the AI universe, and it is something that is is quite a huge deal, really. Um and NVIDIA Jensen Huang, uh their CEO, um, is very um very adept at using the zillions that his business is making on the back of the AI boom, actually entrenching his um his business into other areas that that are very interesting, such as Hugging Face. So, Matt, you know, what do you make of this?
00:23:30 · Matt Goddard, Mal McCallion
[00:23:30] S1: It's it's interesting that it is basically they're expanding into the well, away from chipmaking, aren't they, and into the software and model ecosystems. And we'd already seen this with the launch of their own um sort of large language models um and some some of the sort of open source basically. [00:23:46] S0: Yeah, the open source ones, yeah. [00:23:47] S1: So so to see it going into to Hug Inface, which has been really it's almost like an open router for uh for open models, isn't it? So to see see them move into that. I don't know if that'll leave people think happy with how separated they were from people going to Hug Inface. They're almost trying to get away from the corporate open AI, anthropic, um, and to to work with these sort of independents, liberal independents, and now it's being bought by NVIDIA who like and it's it's huge business, and now they're gonna summonly the man who's bought it, yeah. Yeah, but at the same time it it's good to see that money flowing into into a more of the software piece. I wonder how much the hacking instant took off their share, the the price though.
00:23:47 · Matt Goddard, Mal McCallion
[00:23:47] S1: So so to see it going into to Hug Inface, which has been really it's almost like an open router for uh for open models, isn't it? So to see see them move into that. I don't know if that'll leave people think happy with how separated they were from people going to Hug Inface. They're almost trying to get away from the corporate open AI, anthropic, um, and to to work with these sort of independents, liberal independents, and now it's being bought by NVIDIA who like and it's it's huge business, and now they're gonna summonly the man who's bought it, yeah. Yeah, but at the same time it it's good to see that money flowing into into a more of the software piece. I wonder how much the hacking instant took off their share, the the price though. [00:24:28] S0: Exactly. The defenses are not high. So yeah, no, um big story is gonna run and run, I'm sure, and see how they um they kind of integrate together. Um but uh yes, certainly a a big, big deal. Wanted to touch on last week um we were musing about um this unnamed Ox Alpha model that had sneaked into some of the benchmarks that were being tested out, and there was a lot of speculation about who actually um owned it, including the likes of Google and whether this was like Gemini 4. Um but it has been revealed as something else, hasn't it, Matt?
00:24:28 · Mal McCallion, Matt Goddard
[00:24:28] S0: Exactly. The defenses are not high. So yeah, no, um big story is gonna run and run, I'm sure, and see how they um they kind of integrate together. Um but uh yes, certainly a a big, big deal. Wanted to touch on last week um we were musing about um this unnamed Ox Alpha model that had sneaked into some of the benchmarks that were being tested out, and there was a lot of speculation about who actually um owned it, including the likes of Google and whether this was like Gemini 4. Um but it has been revealed as something else, hasn't it, Matt? [00:24:56] S1: It has, it's GLM 5.3 Flash, isn't it? So GLM was making a lot of noise again. It was while America was blocking the latest iteration of ChatGPT, wasn't it? And and also Mythos being held back and some of these sort of Chinese models were were firing away, and to see 5.3 flash come in, especially the flash model, given how heavy it was punching in the aux alpha for ranking. So to see it come back in as another open source and to see it being aux alpha is is 5.3 flash is certainly adds to it, doesn't it? I don't know if that'll have affected the the hugging face piece as well. Um are you gonna be playing with this one and plugging it in?