Exclusive Interview: Coatue CIO on AI's Biggest Winners

**Jaimin Rangwalla** (0:00)
You now have private companies that are breaking into pretty much the top 25 in the world before they even go public. It's an unprecedented time. The biggest of the Mag-7 was Meta in 2012

**SPEAKER_2** (0:09)
Facebook IPO, the largest IPO filing. Everybody wanted in on the most hyped up IPO in history.

**Jaimin Rangwalla** (0:16)
IPO'd around 100 billion. But today, you look, OpenAI's most recent round was 800 plus billion dollars. Anthropic's last round was high 300s of billions. SpaceX was 1.25 trillion dollars.

**Molly O'Shea** (0:28)
They're reaching 25 billion in annualized revenue at a third, if not half, the speed of the hyperscalers and the mega Mag-7s.

**Jaimin Rangwalla** (0:36)
They're adding 10 billion plus or minus a month, almost 2.5 billion dollars a week. Most of the companies in the SaaS universe don't even have 2.5 billion dollars of ARR annually. Like, they're adding that in a week.

**Molly O'Shea** (0:56)
Jaimin, welcome to Sourcery.

**Jaimin Rangwalla** (0:58)
Thank you, thanks for having me.

**Molly O'Shea** (0:59)
So we're in the new, beautifully built out Coatue office. How does it feel?

**Jaimin Rangwalla** (1:05)
You know, it's almost like the first day of school again. We all came in Monday morning, we didn't know what to expect. Our team here had done a great job of getting everything set up while we were all still just doing our normal jobs downstairs. And we came in, the difference is mostly we're much more of a open format, bullpen style, where everyone is sitting next to each other. We have AI folks, data scientists, analysts, all kind of sitting next to each other, so we're really trying to push the deep insights and collaboration. And it's really exciting, now just being able to yell from one end to the other, say, what does this mean? What's happening here?
It reminds me of my investment banking days a little bit.

**Molly O'Shea** (1:44)
I heard Philippe has a desk in the middle of the bullpen, is that correct?

**Jaimin Rangwalla** (1:48)
He does, he does. He has a desk, he came in the first day, he put his jacket on it and he said, wow, why am I so far from where the center of the action is so we might have to move it back in a little bit closer to the middle.

**Molly O'Shea** (1:59)
That's great. I was also walking around the office talking to some people, and they mentioned to me that you have a secret soccer group that goes to the pier at 6:30 AM twice a week?

**Jaimin Rangwalla** (2:11)
Yeah.
It's not secret, it's selective. Okay. It's a selective group. But yeah, we've been playing soccer for maybe eight years ago we started. It started with us playing like two on two in our gym, and then we moved it out, and now we're playing eight or nine of us against eight or nine of us, and it's super exciting. We keep score, we have a ranking every week, we count people's goals, the grades move up and down on who's doing well and who's not, and it drives, not that we need any more competitive fuel to drive us, but it drives a little extra, a little extra of the culture.

**Molly O'Shea** (2:47)
Oh, that's so fun. Okay, so we're here today to talk about your Spring Coatue Investor Update. You just got off of it. There's lots of data.
I've had a couple of conversations with leaders at Coatue previously, Michael Barton, Thomas Lafont, and we've walked through all the different stages of the tech cycles. So we walked through Internet, mobile cloud, we're now in the AI era. What is going on here? I feel like every six weeks we need an update at this point. It's just moving so fast. So what are you seeing?

**Jaimin Rangwalla** (3:19)
Yeah, I mean, honestly, what you said is the reality, that AI is big and everyone can make these grand statements about how big it is. And we've also tried to do that a little bit in our slides about trying to size the TAM. But the most exciting part is the pace of the innovation. And you can look at that across how quickly companies have reached $10 billion, $30 billion, $50 billion of ARR, which we talk about quite a bit, how OpenAI reached almost a billion users in the fastest time in history. All of the curves are so much steeper and faster of adoption, whether it's at the consumer level, the enterprise level, revenue level, however you think about it. And so to us, we always think about rate of change. That's how you really define technology and how quickly it's catching on and how big it can be.