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Steve Eisman on private equity's software problem: "Private Equity investments in these software companies…they’ll never get out.” “…The public multiples have been cut by more than half. There's nothing you can do about that." Eisman doesn’t think mergers solve this either given the multiples will still remain compressed.

Wall Street Rollup

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203,789 views • 2 months ago •via X (Twitter)

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So insurance companies & pension funds have invested in private equity & credit companies through the Cayman Islands, and they're currently 35x levered on their obligations... Did I hear that correctly? When private credit blows up this is going to be worse than 2008.

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Ford CEO Jim Farley on why it's so difficult for legacy car companies to get software right & why Tesla’s vertically integrated approach is the right one: “We farmed out all the modules that control the vehicles to our suppliers because we could bid them against each other, so Bosch would do the body control module, someone else would do the seat control module, someone else would do the engine control module. We have about 150 of these modules with semiconductors all through the car. The problem is the software are all written by you know 150 different companies and they don't talk to each other. So even though it says Ford on the front, I actually have to go to Bosch to get permission to change their seat Control software. So even if I had a high-speed modem in the vehicle and and I had the ability to write their software, it's actually their IP and I have 150, we call it the loose Confederation of software providers, 150 completely different software programming languages, you know all the structure of the software is different. It’s millions of code and we can't even understand it all. That's why at Ford we've decided in the second generation product to completely insource electric architecture. To do that you need to write all the software yourself, but just remember car companies have never written software like this, ever, so we're literally writing how the vehicle operates the software to operate the vehicle for the first time ever.” via Everything Electric Show:

Ford CEO Jim Farley on why it's so difficult for legacy car companies to get software right & why Tesla’s vertically integrated approach is the right one: “We farmed out all the modules that control the vehicles to our suppliers because we could bid them against each other, so Bosch would do the body control module, someone else would do the seat control module, someone else would do the engine control module. We have about 150 of these modules with semiconductors all through the car. The problem is the software are all written by you know 150 different companies and they don't talk to each other. So even though it says Ford on the front, I actually have to go to Bosch to get permission to change their seat Control software. So even if I had a high-speed modem in the vehicle and and I had the ability to write their software, it's actually their IP and I have 150, we call it the loose Confederation of software providers, 150 completely different software programming languages, you know all the structure of the software is different. It’s millions of code and we can't even understand it all. That's why at Ford we've decided in the second generation product to completely insource electric architecture. To do that you need to write all the software yourself, but just remember car companies have never written software like this, ever, so we're literally writing how the vehicle operates the software to operate the vehicle for the first time ever.” via Everything Electric Show:

Sawyer Merritt

1,172,560 views • 1 year ago

Sequoia’s Shaun Maguire wrote a private hardware manifesto arguing that over the next 25 years, most of the money will be made in hardware: "Every software revolution is preceded by a hardware revolution." "To have the iOS App Store that enabled Uber, DoorDash, and all of these great companies - you needed to have the iPhone." "This AI revolution - we're seeing what it can do from the software layer, but it's still limited by hardware." "The hardware we were doing for a long time was all following Moore's Law. It was all branching out of this decision in the mid-1950s to go all in on the silicon supply chain." "That has created magic, and there's still a couple orders of magnitude of juice to squeeze, but we’re hitting fundamental physics limits - Dennard scaling, things like that." "I think this tech tree is branching into humanoid robots, into silicon photonics, into orbital data centers - all of these new hardware areas where there's going to be 20+ years of progress." "There's going to be incredible businesses built on the back of this. And a lot of dumpster fires." From his appearance on the show in March.

Sequoia’s Shaun Maguire wrote a private hardware manifesto arguing that over the next 25 years, most of the money will be made in hardware: "Every software revolution is preceded by a hardware revolution." "To have the iOS App Store that enabled Uber, DoorDash, and all of these great companies - you needed to have the iPhone." "This AI revolution - we're seeing what it can do from the software layer, but it's still limited by hardware." "The hardware we were doing for a long time was all following Moore's Law. It was all branching out of this decision in the mid-1950s to go all in on the silicon supply chain." "That has created magic, and there's still a couple orders of magnitude of juice to squeeze, but we’re hitting fundamental physics limits - Dennard scaling, things like that." "I think this tech tree is branching into humanoid robots, into silicon photonics, into orbital data centers - all of these new hardware areas where there's going to be 20+ years of progress." "There's going to be incredible businesses built on the back of this. And a lot of dumpster fires." From his appearance on the show in March.

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