Revelio Labs

Software Sell-Off and Rising AI Demand

This a16z Charts of the Week analysis reviews a selective downturn in public software valuations, arguing the market is pricing doubts about long-term durability rather than present performance. The piece shows dispersion within software equities (top quartiles outperforming while large incumbents lag), highlights sectors perceived as AI-defensible (cyber/observability and vertical SaaS), and documents growing AI demand as costs fall (including token-share shifts toward open-weight providers). It also examines labor-market signals suggesting AI adoption is correlated with increased entry-level hiring, and notes New York Governor Kathy Hochul’s one-year moratorium on data center development and its potential implications for electricity rates and regional investment.

AI Adoption, China Self-Reliance, and Talent Risks

A July 5, 2026 Exponential View newsletter reviews new research and data on AI’s labor effects, geopolitics of AI model development, and supply-chain risks. Ramp and Revelio Labs’ analysis of over 21,000 U.S. firms finds high-AI adopters increased overall employment by ~10% over two years, with entry-level roles rising ~12%. Papers argue U.S. chip export controls have pushed Chinese developers toward open-source, locally runnable model infrastructure (raising GitHub forking among China-linked developers), while other research documents growing Chinese self-reliance in the science underpinning domestic patents. The newsletter also notes sectoral concerns such as “never skilling” in medicine and global tungsten supply concentration (China mines ~80%). The piece synthesizes data-driven findings and academic papers to highlight nuanced, mixed impacts of AI adoption.

Report: High AI Spenders See Headcount Growth

A TechCrunch article summarizes a new report from Ramp and Revelio Labs analyzing enterprise AI spend and workforce records across nearly 22,000 companies. The report finds that "high-intensity adopters" — firms spending about $30 per employee per month on AI initially — experienced a 10.2% increase in headcount, with entry-level roles rising (12%) at tech-forward firms. Growth occurred across engineering, sales, admin, customer service, finance, marketing and scientist roles, especially in the information sector. The article contrasts these findings with other research (e.g., Goldman Sachs) showing net job losses tied to AI, and notes the report’s caveat that gains are concentrated among already fast-growing, well-resourced companies, creating a potential widening gap between firms that scale AI investments and those that only pilot subscriptions.