95% of IPO Work: Done by AI? Goldman Sachs Says Yes

Earlier this week, US President Trump announced a $500 billion investment in AI through a joint venture between Open AI, Oracle and Softbank. “Most important project of this era,” claimed Sam Altman. Investor Masayoshi Son called it the “beginning of the golden era.” Trump proclaimed it “a resounding declaration of confidence in America’s potential.”

Elon Musk didn’t think so. However, the X (formerly Twitter) exchange between him and Sam Altman is amusing. So, here you go!

A comprehensive summary of the drama here.

The AI way to IPO

Speaking of CEOs, David Solomon of Goldman Sachs made a startling statement at the Cisco AI Summit. He said that AI can complete 95% of an S1 fling, which investment bankers take weeks to do!

While that is a bold claim for the future, we at Tune AI are already doing something similar. Allow me to include a quick plug for our client story: Accelerating data indexing from several hours to under seven minutes!

[Read case study]

Lowering costs vs. skyrocketing prices

One of AI's biggest selling points is its ability to save costs for organizations. This is the pitch of LLM creators and product developers alike. However, in parallel, the price of AI is increasing dramatically.

Google increased its Workspace subscriptions (Gmail, Docs, Calendar, etc.) and has bundled Gemini into it. Microsoft has gone the same route with its Copilot offerings, with some products costing 30% more!

What we see is that product bundles are prone to price increases. With AI, the value you get from your tools increases with usage. This means you might spend the next two years training the AI to meet your needs, at which point your provider could double the price!

The risk is very real. But it’s also too early to declare doomsday.

We recommend you begin considering open-source LLMs and internal deployments as more certain ways to save costs. Either way, we will just have to wait and watch.

Best,
Anshuman Pandey

P.S. Llama 3.3 70B is now available on Tune Chat