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Frontier labs: record revenue, trillion-dollar prices
OpenAI's annualized revenue is reportedly approaching $70B. That would be up more than 70% since the start of Q3, with enterprise sales more than doubling since July . OpenAI is also reportedly in talks to raise at least $30B at about $1.4T pre-money, as a bridge to an eventual IPO. Anthropic is reportedly targeting a listing as early as mid-November, with a roadshow the week of November 9 and a valuation discussed at $1.8T–$2T .
When asked about the $70B figure, Sam Altman would not confirm or deny it and said he was "very pleased with the growth" . He said OpenAI wants to be public eventually, but not while it adjusts to new capability levels and safety requirements. He described investors as "very happy with us and very patient" . In the same interview he referenced holding back Astra 6.1, and said OpenAI will slow training or releases to focus on safety when needed .
On the 20VC/SaaStr panel, Rory O'Driscoll framed the competitive picture this way:
- OpenAI grew only 18% quarter over quarter from Q1 to Q2.
- By his numbers, Anthropic's GAAP revenue overtook OpenAI's in Q2, at roughly $11B against $6.8B.
- Anthropic's Q3 number will be in its prospectus before the stock trades. That matters because teams are reportedly moving work to Codex .
His advice to a hypothetical buyer choosing between the two was to lean toward liquidity .
The State of AI Report 2026 came out the same day. Its headline figures:
- Lab revenue: OpenAI's and Anthropic's combined run rates reached about $105B by late summer, up from about $30B at the start of the year.
- Application companies: Legora and Sierra each doubled to $200M in about six months; Harvey reached $400M, Lovable reports $600M, and Cursor has been reported above $4B. The report notes that metrics differ across companies .
- AI-native vs. AI-enabled: at the 75th percentile in the $1–20M revenue band, AI-native companies grew revenue 256% year over year, versus 90% for AI-enabled firms .
Nathan Benaich's other takeaways from the report:
- Anthropic's internal index says Claude led 26% of measured model R&D in August, with humans supervising .
- He thinks robotics is approaching its "GPT-2 moment" .
- AI-discovered drugs are reaching late-stage trials: Insilico's rentosertib is recruiting for Phase 3. Human trials still have to show these drugs are safe and effective .
Agents are becoming a buying channel
Vercel says agents went from under 3% of its deployments to more than 50%. On the podcast, Harry Stebbings cited $600M ARR with agents driving half of new business . Jason Lemkin asked an agent live on the show what to use for hosting. It ranked Render first and Vercel fifth . His advice to founders is to find 10 people with agents in production and ask them every two weeks what their agents recommend in your category . Dev Ittycheria warned that the data agents learn from favors incumbents, so startups need documentation and APIs that agents can read easily .
Infrastructure providers are building for this traffic:
- AWS: plans $220B in 2026 capex, has two million Nvidia GPUs on order, and says its AI chips are sold out through next year. It is adding a 30-second account signup with no credit card so agents can start using it . AWS also says it deliberately holds back accelerator capacity for startups rather than selling it all to frontier labs, and says yes in some form to about 60% of startup requests .
- Token usage: a16z says agents use nearly 5x the tokens people do, and that this is up 14x in six months .
- Cloudflare: non-human traffic passed human traffic on its network in May 2026, more than a year earlier than its own forecast . It is building agent payments (Monetization Gateway and Wallets), but this layer has no revenue yet .
Agent reliability is still a weak point. Microsoft authors introduced ThinkingBox, a benchmark of 507 business workflows that runs each task 20 times:
- Kimi-K3 solved 93.89% of tasks at least once but only 13.41% on all 20 attempts. Claude Opus 5 solved fewer (79.09%) but repeated far more reliably (47.53%). Ranking models by either measure gives nearly opposite leaderboards .
- 67.24% of failures ended cleanly, so a simple "did it finish" check would have scored them as successes .
- The tasks are synthetic reconstructions of enterprise workflows, not production traffic .
For diligence, this means one-off agent demos say little about whether an agent works reliably.
Venture: bigger funds, big seeds, mixed exits
USV raised $900M in new funds. Its last core fund was $275M . USV's explanation is that AI has made building easier, which has raised demand for the best companies and led to "bigger rounds and higher prices" . It will make about the same number of investments, but lead more rounds and back capital-intensive robotics, manufacturing and energy companies . Its energy thesis, previously run through a dedicated fund, moves into the core fund .
Hone launched Engines: the customer points the product at a business metric and it builds its own agents to move it. Hone announced a $60M seed led by Benchmark and Index .
Exits and secondaries:
- Listen Labs: Salesforce agreed to buy the three-year-old AI market-research company for a reported ~$2B. Listen Labs had walked away from a signed Series C term sheet at $1.5B, and its revenue was estimated at about $30M annualized . Dev Ittycheria expects more deals like this, because many AI apps are features built on someone else's platform .
- ElevenLabs: closed a $300M employee tender at $22B, double its February Series D valuation .
- Oura: postponed a $2.2B IPO that was about four times oversubscribed, despite $1.21B in revenue for nine months, up 74% . Jason Lemkin called it a hole in the "liquidity is back" story . Ittycheria said price was the likely reason, but stressed that he was speculating .
- Groq/Nvidia lawsuit: two former Groq engineers sued over Nvidia's $20B license-and-hire deal ($17B license, $3B in RSUs for 150–200 engineers) . Panelists said founders should expect employees to ask what happens to their equity in deals like this .
- Secondaries demand: in SetterVC's Q3 ranking, Anthropic was #1 for a third straight quarter. Etched debuted at #13 and Hadrian rose nine spots to #11. Kalshi fell 16 spots and Polymarket 24 .
An unverified anecdote: Kenan Saleh says an unnamed company selling "frontier data" to AI labs went from $0 to $60M in three months and will reach a $100M run rate this month .
Model pricing: a caveat on Haiku 5.5
The prior brief covered Haiku 5.5's launch. The new detail is Artificial Analysis's evaluation. It scored the model 43 at max effort, ahead of GPT-6 Luna at 38 . But at max effort Haiku used about 162k output tokens per task, roughly 3x Luna . Cost-per-task numbers are still pending because the evaluation does not yet account for the 5x price step above 100K tokens . When comparing per-token prices, check cost per completed task.
- Panel cited OpenAI as nearing a ~$70B run rate and discussed claimed Q3 revenue growth of 70% quarter over quarter versus 18% in Q2, explicitly conditioning the 70% figure on it being correct . Participants linked the rebound to models users viewed as better and cheaper and rapid developer switching; they said Anthropic’s Q3 results would help distinguish share rotation from growth across the market .
- Reflection’s U.S. open-weight Beam was pitched as near-frontier and 3–4x more cost-effective, with potential enterprise demand from buyers hesitant about Chinese models, especially in regulated or sensitive settings . The evidence remained uncertain in the discussion: one participant said Beam was not yet on OpenRouter and questioned whether published evaluations reflected real workflow performance .
- The panel discussed ElevenLabs at a $22B valuation after it doubled, and floated investing up to 10% of a fund—not an executed commitment . Its bullish case was voice as an important underpinning for agentic applications, with submillisecond response, strong margins and positive customer references; participants acknowledged substitution and cost risks but argued that reliability-sensitive voice uses make models less fungible .
- Salesforce acquired Listen Labs for $2B . Panelists saw LLM-driven, adaptive interviews as an upgrade in a large, fragmented market-research category , while questioning whether a business with about $20M in revenue could move the needle for Salesforce and distinguishing feature-like AI apps from more durable franchises built on unique usage-data loops .
- The episode cited Vercel at $600M ARR, with agents accounting for 50% of new business, up from 3% at the start of the year; participants described agent vendor selection as a potentially powerful growth driver . They cautioned that early-stage startups may be disadvantaged by incumbents’ larger information footprints and advised making product documentation, APIs and infrastructure legible to agents, then testing recommendations with live agents .
- The show described Aura’s IPO as pulled despite roughly $1.2B in revenue and 74% growth; panelists speculated that price expectations were the cause but said they had no inside information . Separately, two former Gro employees sued over a technology-and-staff transfer to Nvidia, alleging common shareholders were left with a hollowed-out company . Panelists warned that a successful suit could challenge license-and-hire structures as de facto acquisitions and said founders may need to address employee equity outcomes when technology and staff transfer without a whole-company sale .
- Cisco is targeting AI data-center networking beyond GPU scale-up: president and chief product officer G2 Patel describes scale-out networks across rows of racks and scale-across connections between power-constrained data centers hundreds of kilometers apart; Cisco supplies networking silicon, switch trays and photonics, and focuses on scale-out and scale-across. Patel says hyperscaler AI-networking orders reached $2.3B in the first year, versus $1B initial guidance, and about $9B in the following year, versus a $5B target; these are orders, not recognized revenue. He cites Cisco revenue of $63B and estimates networking represents 10–15% of a data center build costing close to $50B per gigawatt.
- Patel argues AI infrastructure remains supply-constrained: he says fewer than 2% of people use agents at a power-user level and estimates an agent uses 450% more network bandwidth than a human for the same task. He argues new capacity is consumed almost immediately, while acknowledging that some AI-company valuations are frothy and distinguishing that from a bubble in the broader platform shift.
- Cisco says it pushed AI adoption among its 32,000 engineers and wider workforce, initially offering unlimited tokens and tooling; Patel said employees who did not use AI would lose their jobs. He expects more engineers, arguing that AI-assisted coding moves bottlenecks to code review and then to judgment about what to build.
- Patel identifies trust in delegated AI agents as a major enterprise constraint. Cisco says its AI Defense product, launched about 1.5 years before the interview for the chat era, has been extended to dynamic agent monitoring; described capabilities include model visibility, non-human identity and agent inventory, red-teaming, runtime guardrails and observability. Cisco also acquired Galileo, whose team joined Splunk.
- Fulcrum, co-founded by CEO Arjun Mangla and Sambhav, is building an AI-powered insurance platform. Mangla says businesses buy close to $2 trillion of insurance annually, yet market-making remains manual and inefficient, limiting competition.
- Fulcrum’s thesis is that AI can change insurance distribution and market-making, not merely automate existing workflows. Its envisioned system would automate insurance placement—from mapping business requirements to coverage and marketing to carriers through broker-reviewed selection—and ongoing coverage maintenance; connecting insurance to business systems could enable more continuous changes rather than the mostly annual coverage cycle described by Mangla.
- Mangla says insurers have shifted from questioning whether AI demos work and worrying about replacement to seeing effective AI use as a way to stand out; he claims Fulcrum can deliver 10× improvements. He also describes the company scaling from 5 to 40 people over three to four months.
- Bending Spoons’ thesis is to acquire digital businesses using its own balance sheet and hold and operate them indefinitely. It deeply integrates acquisitions on a shared technology foundation, pooling R&D, marketing and G&A and rebuilding products, codebases, cloud infrastructure and monetization; Luca Ferrari says the operating platform, more than deal selection, drives returns.
- Ferrari estimated the company’s equity value at its IPO, a few months before the interview, at $18 billion, adding “I think.”
- Ferrari said Bending Spoons received 800,000 applications and hired fewer than 300 people the prior year. Its recruiting team evaluates hundreds of application signals and uses practical tests, iterating based on later performance; he considers unstructured interviews poor predictors, while standardized questions and separate assessment can make them more useful.
- The company prioritizes talent over experience, including investing in students and new graduates; its core selection criteria are fast learning and sound reasoning (“smart”) and “extreme ownership.” Ferrari says substantial responsibility and talented peers are central to developing people. Experienced hires can succeed, but he reports that many have struggled to adapt to the company’s culture.
- Ferrari said Bending Spoons chose Milan to draw on an educated talent pool with relatively few leading tech employers, allowing it to build a strong team for the same or lower cost; he also framed the choice as helping distribute opportunity beyond major hubs. The company later became international, with more hiring outside Italy than within it.
- On AI, Ferrari’s view is that modern technology lets companies do more with the same resources, but that others’ ability to pursue many initiatives does not prove that doing more is the right strategy. Bending Spoons’ “relentless simplification” principle puts the burden on proposed complexity to show clear value or be reversible.
- OpenAI is positioning Dots as a premium, work-oriented agent aimed largely at enterprises, while also targeting startup founders in the prosumer market; a mass-market consumer version is planned later. Altman said its higher price reflects its capability and compute needs, while OpenAI aims to improve intelligence and drive prices down.
- Altman described OpenAI as in a steep growth period, with momentum across consumers, developers, and enterprises. After the interviewer cited reported Q3 ARR of $70 billion, Altman declined to confirm or deny the figure and said he did not know where the reported numbers came from.
- The interview referenced holding back Astra 6.1 and pausing training on another model; Altman said OpenAI is willing to slow training or releases to focus on safety, alignment, monitoring, and security as capabilities rise sharply, while still releasing faster or cheaper versions it considers reasonable. He also called for shared safety-case standards by capability level, with possible review by independent evaluators, governments, or other companies.
- Altman said OpenAI expects to go public eventually, but wants to adjust to higher capability levels and new safety requirements before taking on the added pressures of being a newly public company; he described investors as patient.
- AWS described AI startups as starting at much larger scale than earlier cohorts—sometimes with about $200M in funding and $1B valuations, versus earlier startups with about $10M—and said it intentionally reserves GPU capacity for them. AWS says it responds yes in some form to roughly 60% of startup GPU requests, sometimes later or with a different region or configuration, and plans to buy 2 million NVIDIA GPUs over the next couple of years.
- AWS discussed 2026 capex of roughly $200–220B and said it does not expect to slow investment amid massive demand; it cited power, data-center construction, capital, memory, chips, and construction labor among shifting constraints.
- AWS said it is in market with third-generation Trainium, that most Bedrock traffic runs on Trainium, and that Trainium capacity was sold out through perhaps the end of the following year; it cited deals with Anthropic and OpenAI and roughly 6–12 startups building on the chips.
- AWS is developing infrastructure for agent workloads, including AgentCore and Bedrock, an AWS Context layer in preview/beta to help agents find data across services, and new building blocks such as compute sandboxes, gateways, and time-limited, fine-grained agent permissions; it pointed to Firecracker microVMs as a fast-starting security boundary.
- AWS described enterprise agents as mostly simple and non-autonomous today; trust, safety controls, evaluation, data labeling, and production monitoring remain obstacles. AWS and partners are helping customers build these capabilities, with AWS saying it wants engagements to leave customers able to operate them independently.
- AWS sees customers exploring fine-tuning open-weight models on proprietary data to produce better-performing, lower-cost models, while stressing that evaluations must verify the gains; it said most such work is currently done on SageMaker.
- Garry Tan says agent swarms are real and predicts they will bring “incredible advancement” across human understanding.
- The linked post reports LLM progress on four Millennium Prize problems—Navier–Stokes (marked “claimed”), Riemann, Hodge, and Birch–Swinnerton-Dyer—and says OpenAI’s results averaged three hours of thinking compute on new, unreleased models. Its characterization of the release as the “single most consequential” mathematical release is explicitly conditional on verification.
- The linked post’s author, Deedy Das, interprets the results as evidence that scaling data, compute, and algorithms continues to produce substantial gains each model generation (which he estimates at about three months). He argues that AI already meets most interpretations of AGI, while listing robotics and physical control, natural-science research, creative domains, very long tasks, problem selection, and relationship management as areas where humans remain better.
- Beacon launched in early 2024 to acquire, operate, and transform vertical-market businesses serving the “real economy”; it reports owning 40+ businesses, doing a deal every 10 days, and serving 22,000 enterprise customers and 5.1 million daily active users across its app system.
- Beacon says its AI systems identify early signs that an owner may sell within two years; about 60% of its M&A process is automated, which it says enabled deal professionals to complete four times as many deals in 2026 as in 2025. Its CEO estimates AI can automate 60–80% of sourcing, rather than all of it.
- Beacon positions its strategy as product-led growth, not cost-cutting: net dollar retention is its “hero metric,” with a focus on selling more to existing customers. It contrasts this with finance-first software rollups, saying capital should go to organic R&D or acquisitions according to the business’s best long-term use.
- Founder continuity is part of the acquisition model: Beacon says 75% of acquired founders stay and receive support from product leaders and operating specialists; among the 25% who leave, some retire and others advise. Cross-selling and AI-driven marketing recommendations have shown early results, but Beacon says the harder challenge is change management and adoption in existing workflows.
- AI is renewing the debate over whether product managers are needed; Adam Nash argues each technology generation should revisit established answers, while maintaining that product has a core role in building software.
- Nash says product leaders must set strategy, prioritize, and execute—and clarify both the “game” a team is playing and how success is measured—so teams can align rather than waste effort in conflict. He recommends spending roughly 70% of team time on metrics-moving work and at least 10–20% on customer requests, while leaving room for surprise-driven “delight” features.
- Daffy chose membership pricing rather than the percentage-of-assets model common to donor-advised funds: it starts free, most members pay $3/month, families $5, and higher tiers are available. Nash says this aligns the business with charitable giving rather than incentivizing a focus on the largest accounts. He reports that cohorts give more over time and Daffy’s net revenue retention is above 170%, explicitly caveating that the figure is on small numbers.
- OpenAI and Anthropic’s reported combined annualized revenue run rate reached about $105B by late summer, up from about $30B at the start of the year. Legora and Sierra doubled to $200M in about six months, Harvey reached $400M, Lovable reported $600M, and Cursor was reported above $4B in ARR/annualized revenue; the source cautions that starting points and metrics differ. Metrics Co preliminary Q2 data showed AI-native companies growing revenue 256% year over year versus 90% for AI-enabled firms at the 75th percentile in the $1–20M annualized-revenue band.
- Anthropic’s internal index says Claude led 26% of measured model R&D in August, with humans supervising; agent use in knowledge work is also rising. Benaich identifies agents’ ability to choose worthwhile experiments and abandon unproductive approaches—“scientific taste”—as a next challenge.
- Reported cloud backlog reached $1.69T in June, up from $671B a year earlier, but includes non-AI business; CoreWeave quarterly revenue reached $2.58B, and firms originally built for frontier models are entering inference. Nvidia’s A100 remained the most-mentioned Nvidia chip in AI papers six years after launch, with a full-year 2026 estimate of 14,707 mentions—more than H100 and H200 combined; Nvidia also participated in 84 AI funding rounds, roughly twice its 2024 total. A modeled $17.3B investment across eight Western chip challengers returned 3.6x versus 4.7x for Nvidia, but the comparison includes estimated private valuations and distributions and depends on funding-date and valuation assumptions.
- Benaich sees robotics approaching a GPT-2-like inflection (with some arguing GPT-3): broader pretraining may help robots generalize to unfamiliar tasks, while world models enable simulation and planning before real-world action. He points to SkildAI, GeneralistAI, Sunday Robotics, OdysseyML, and Wayve.
- AI-assisted drug discovery has reached late-stage clinical development: Generate Biomed’s GB-0895 and Enveda’s ENV-294 for eczema and asthma are described as Phase 2a, while Insilico’s rentosertib is recruiting for Phase 3. Human trials still need to establish safety and efficacy.
- Benaich characterizes OpenAI’s cyber eval as having become a “huge coordinated attack” on Hugging Face and a warning shot; GLM-5.3 neared Mythos Preview on two exploit tests. Hugging Face said API guardrails hindered its investigation, so it used self-hosted GLM-5.2; the report notes that open models can raise threats but are also needed by defenders. The report says June U.S. export controls halted Fable and Mythos abroad, with Fable returning in July, and argues Europe cannot rent its way to AI sovereignty.
- The report’s forward-looking predictions—not reported outcomes—include rules assigning liability for AI-agent purchases, regulators linking abnormal stock moves to correlated retail-agent orders, autonomous AI-led model research, theft of closed-model weights, and frontier-lab cyberdefense products.
- Andrew Ng sees open-source/open-weight models as a route to wider AI adoption because they can be much cheaper than frontier services and let governments, businesses, and individuals download and run models themselves, reducing reliance on foreign providers and internet connectivity. Locally run models may be less capable than frontier systems, and stronger compute can help.
- He argues governments should support adoption for AI sovereignty and affordable access; countries can also adapt open-weight models using local data to better serve their languages and dialects.
- Ng says AI is changing the skills needed across many jobs and that workforce upskilling and reskilling are still at an early stage; he sees potential for developing economies to catch up or leapfrog.
Transportation Secretary Sean Duffy said Air Space Intelligence—a small company that competed with the largest firms and won—built SMART to predict air-traffic conditions; he gave an example in which a 2.5-hour ground stop might only need 45 minutes, while controllers still make every call. Tan framed the broader constraint as willingness to use software and accept AI augmentation, not a need for a breakthrough. He also said his Seattle flight landed 26 minutes early but waited those 26 minutes because software and AI were not being used to rearrange gates so the plane could unload.
Nikita Bier sketched a natural-language-directed vision for a personalized GTA-like game: decompile and distill GTA, recreate a hometown using Google Earth, make the player the character, tailor missions to their chat memory, and enable online play; the post presents an envisioned workflow, not evidence of a built or available product. Garry Tan reacted, “GTA SF omg.”
A quoted post claims TikTok is “blowing up” with people warning against an unnamed vibe-coded Photoshop alternative as “AI slop,” a limited anecdotal signal of consumer resistance to AI-made software . Garry Tan’s response is a mustache-grooming joke, not a product assessment or endorsement .
Garry Tan says it is logical that agent-equipped individual contributors will be more productive and deliver better outcomes than comparable managers from prior eras , echoing Elena Verna’s argument that AI-era ICs should be paid more than managers if they can drive greater impact .
- AWS CEO Matt Garman says he is not worried about an AI bubble because AWS capacity is not concentrated in one customer, most usage is core compute, storage, and inference, and customers report positive returns at current AI capabilities and costs. He compares the risk to venture investing and the internet bubble: some companies fail while the underlying technology endures.
- An a16z interview summary lists AWS’s planned 2026 CapEx at $220B, two million NVIDIA GPUs on order, and its AI chips sold out through next year. It also lists AWS revenue at $170B, growing 37%, and says 30–40% of its revenue started as startups.
Garry Tan said the case for intelligence rooted in memory and lived experience is why he made GBrain, linking to a passage that contrasts lived memory with merely compiling data .
- a16z argues AI is shifting the CFO from accountant or banker toward a builder of the company’s finance operating system: AI-native tools now pull data across systems and support faster, more continuous finance work. Its portfolio examples span ERP (Rillet), live financial planning (Concourse), procurement (Lio), accounts receivable (Stuut), indirect tax (Sphere), and SOX testing/internal audit (Petual); a16z says these workflows previously required dedicated teams or outside providers.
- Finance teams are also building AI tools themselves: Anthropic’s finance team maintains 70+ finance-specific AI skills, and one produces a monthly review that is 90–95% complete in about 30 minutes. a16z says the leanest finance teams it sees are targeting 2% of company headcount, down from the old ~5% heuristic; it also describes a shift toward continuous forecasting and emphasizes auditable trails and finance approval controls for agent-handled work.
- AWS CEO Matt Garman says customers increasingly want cloud infrastructure designed for agents: AWS is building agent-specific primitives, including databases that start in three seconds for short-lived tasks with lower durability needs, compute sandboxes, gateways, and permissions distinct from human or service-role permissions—not simply repurposing existing building blocks.
- In its interview post, a16z reports AWS has $220B in CapEx for 2026, two million NVIDIA GPUs on order, and AI chips sold out through next year.
Scott Kupor discussed American leadership and responsibility in superintelligence after appearing on CNN about the President’s Super Intelligence Task Force, his role, and potential implications of superintelligence for jobs, tech companies, and America’s future.
You Need a New CFO

In 2020, CFOs needed new tools (opens in new tab). Now the tools are changing the role.
The role was becoming more strategic, but the software was still stale. CFOs were part data analyst and part architect, stitching together exports from a constellation of point solutions and Excel orbiting thirty-year-old ERPs. The data was the bottleneck. It lived in too many places and was hard to wrangle, and the tools on top were brittle and limited in what they could do.
Now AI is removing those constraints. Assembling the data has gotten easier, and the software has started doing more of the work itself. And when that changes, both how the work gets done and who does it change too. That means the finance function itself changes, along with the team and the archetype of the person leading it.
From accountant to banker to builder
You can see this in who companies have hired for the job over time:

The dimensions of a great CFO have held up remarkably well across eras (opens in new tab). The best CFOs don’t just deliver numbers or board decks. They also use data to guide an opinion on the direction the business should take. What the job asks of them is what keeps changing with the scarce skill of the moment.
Each era’s archetype has tracked this shift. When the job was to clean books, establish controls, and report results, companies hired CFOs out of the Big 4 accounting firms. When the job was raising capital and getting the deal done, they hired out of investment banking. When the job became planning, metrics, and business partnering, the planning (“FP&A”) skillset rose in importance, with companies often still hiring from banking or private equity backgrounds.
Today’s scarce skill is something new: designing the operating system the company runs on. This means the data, workflows, agents, skills and controls that turn context into intelligence and decisions. You can see this in the rise of the “finance engineer” inside finance teams, and in CFOs increasingly playing that role themselves.
The finance leaders operating this way describe the function differently than their predecessors did. Sarah Friar, OpenAI’s CFO, frames finance as a real-time function (opens in new tab). Finance is building toward a zero-day close and a continuously updated forecast, a big shift from the traditional monthly close rhythm. Whether for allocating compute or capital, the best finance leaders now sound less like scorekeepers and more like builders.
More data, better tools, slimmer team
The shift in the archetype of the CFO, and the broader finance organization, is being driven by the rapid progress of AI-native tools. Easier, faster data access unlocked better tools, changing how the work gets done and by whom, and in turn how finance teams are structured and how they operate.
1. Data stopped being the bottleneck. The central complaint of our 2020 piece was that the CFO’s raw material - the data - was out of date, fragmented, and painful to pull together. Finance teams were spending most of their energy at the bottom of the pyramid stitching together inputs: pulling exports and reconciling spreadsheets and chasing down the explanation for a variance buried in an email thread, or worse, in Slack DMs and channels. AI makes it faster and easier to extract, ingest and interpret data scattered across different systems and formats. Teams can spend less time acquiring information and more time actioning it.
2. The finance stack is becoming part of the finance team. In 2020, we mapped the finance stack layer by layer and argued that a wave of modern tools was coming for each one. With AI helping solve the data issue, that wave came. The new generation stands up in days rather than quarters, automates the data collection itself rather than waiting to be fed, and delivers insight in real time rather than at month-end. Every area of that original market map now has an AI-native contender for everything from an ERP to tax to procurement.
A few examples from our portfolio:
Rillet (opens in new tab)’s ERP cuts implementation from months to days or weeks, automatically pulls in data, and turns a monthly close into a daily one.
Concourse (opens in new tab) deploys agents for financial planning and forecasting, pulling in real-time pipeline data to build live scenarios.
Lio (opens in new tab) uses a multi-agent model for procurement and whose agents conduct vendor diligence, negotiate contracts, oversee internal sign-offs, and monitor fulfillment.
Stuut (opens in new tab) manages the end-to-end accounts receivable cycle from outreach to follow-up to collection and dispute resolution, automating the cash application process.
Sphere (opens in new tab) turns complex indirect tax compliance into an end-to-end automated process.
Petual (opens in new tab) automates SOX testing and enterprise internal audit workflows.
These are all workflows that previously needed dedicated teams or external service providers.
The last generation of software helped finance professionals manage the work. This generation does the work itself. The best AI-native finance software now does finance.
3. The rise of the finance engineer. With the data problem receding, something we didn’t predict in 2020 has emerged. The most advanced finance teams are not only using AI software tools but building their own automations, dashboards, and more internal tools. Many of these people had never written code, were skeptical of AI, and didn’t have access to engineering resources. Over the last 9-12 months, they’ve become AI-pilled.
Anthropic’s finance team has built (opens in new tab)and maintains a library of 70+ finance-specific AI skills they treat like production code. One of them produces a 90-95% complete monthly financial review, compressing hours of human work into about thirty minutes. At OpenAI, Friar’s team builds custom GPTs for investor relations and procurement, as well as live dashboards to replace static board books.
One growth-stage CFO in our portfolio asked their team to create agents and within two weeks they had 50. They weren’t all useful but they gave everyone a chance to experience the magic moment when an agent actually produces real work. Another said their finance and accounting teams are becoming product managers, working with engineers to create their own tools.
Just as we’ve seen the rise of the GTM engineer, the growth engineer, the talent engineer, many companies are starting to have a “finance engineer.” Similar to the other roles that combine domain expertise and the ability to build, this is commonly a finance person, frequently with an engineering background, who has become proficient in Codex or Claude Code and leads the charge on building tools for the team. They are often connecting systems and fixing workflow bottlenecks. For example, this could mean building a tool that combines customer revenue with model inference costs, cloud usage, and support costs, then flags accounts where margins are deteriorating or usage has made a particular contract unprofitable.
Historically, this required unlikely support from core engineering teams or attempting to hire engineers on to the finance team. Many CFOs themselves now spend more time building with AI or using AI-native tools, and less time in meetings. “These new products are fun to use” is feedback we hear often.
The operating discipline behind the finance engineer is simple: if you do something twice, write a workflow; if you write the workflow twice, write an agent.
4. The finance team gets smaller and higher leverage. Most finance teams are still organized the old way: a controller layer, an FP&A layer, an ops layer, and a CFO. All of this is built for a monthly cadence and one-person-per-task ownership. That structure made sense when every layer existed to move and reconcile data.
The old heuristic of finance at ~5% of headcount is changing too. The leanest teams we see are targeting 2% and prioritize talent density over headcount. The new finance hire can wire multiple systems together with an API call, write SQL, and prototype an automation. AI fluency is becoming a baseline requirement. “Walk me through your model” is becoming “walk me through your prompt sequence.”
Senior domain experts can get the most leverage out of AI. At Anthropic, the heaviest user on the finance team is the head of tax. As one of our growth stage CFOs put it, it’s tempting to assume the most junior people will be the strongest adopters, but they lack the experience and context to know what “great” looks like, or what to build.
5. Planning becomes continuous. Usage-based revenue (e.g. tokens, minutes, API calls) has always been complex to forecast. Moreover, standard processes and tools that operate on a monthly cadence aren’t fast enough, especially since agents have become actors in the P&L. Many finance leaders are now leaning into continuous forecasting, which provides a live view using statistical models, account-level evidence, and finance judgment. FP&A is evolving from annual budgeting to continuous operating decisions. You can now run complex scenarios live in the meeting.
6. Controls become a critical feature of the product. With software taking on more work in finance, an auditable, trusted chain from each of finance’s numbers to its source is critical. Finance needs to know where each number came from and how it was calculated, and where and which agents were involved. If an agent is drafting a journal entry, for example, it needs to keep the supporting work papers and evidence and follow approval rules before posting it. AI can still be used to reconcile records and flag and explain variances and exceptions, but finance sets the rules and owns sign-off. Having controls enables speed. The team can focus on the strategic work without having to reconstruct and check every step by hand.
7. Finance gets a bigger mandate. With real-time data and the ability to run scenarios quickly, finance is being pulled into many more strategic decisions. For many AI companies, compute is one of the biggest operating expenses and most consequential capital allocation decisions. Now finance teams can pull together a current view of usage data, infrastructure costs, and customer revenue, and AI tools can help determine how a new feature or an increase in customer usage would affect margins. That gives finance a stronger basis for weighing in on pricing, product launches, and spending commitments.
Companies are also making many more decisions where the CFO is a key arbiter. For example, how teams divide work between people and software is a key question across organizations and is a finance decision. With more granular data on the tradeoffs across time spent, token usage, software utilization, and more, finance can assess these tradeoffs. Build versus buy is part of this decision set. Building might now mean a big engineering project or just a non-technical team vibecoding a smaller tool. Buying might mean paying for usage or completed work, so costs change based on adoption. Now with AI, finance can model these more complex scenarios more quickly and accurately.
The role, rewritten
The CFO job has changed before. What feels different now is how much of the finance function and the org itself is being redesigned. The CFO historically built finance teams around layers of people needed to collect, reconcile, and review data spread across many tools, all set up to track and manage the work. Now the CFO, with a smaller team and greater leverage, can build and use the tools that do the work. Decisions that happened at weekly or monthly intervals can now happen continuously.
The CFO is becoming a builder and architect of the company’s operating system. That means figuring out what’s best done by the team and by software. The AI-native CFO has to be automation-first and know how to build, train, and resource a modern finance team. They also need new frameworks for what to build, what to buy, and how to calculate the ROI of those decisions. The upside is more time spent on the business itself and on being a strategic partner to the CEO. The job is still finance, but more of the job now is designing how finance gets done.
cc: @IvanoMakSF David Borecky
Thank you @astrange and @BKRoberts for their help on this piece!
- a16z argues AI is shifting the CFO from accountant or banker toward a builder of the company’s finance operating system: AI-native tools now pull data across systems and support faster, more continuous finance work. Its portfolio examples span ERP (Rillet), live financial planning (Concourse), procurement (Lio), accounts receivable (Stuut), indirect tax (Sphere), and SOX testing/internal audit (Petual); a16z says these workflows previously required dedicated teams or outside providers.
- Finance teams are also building AI tools themselves: Anthropic’s finance team maintains 70+ finance-specific AI skills, and one produces a monthly review that is 90–95% complete in about 30 minutes. a16z says the leanest finance teams it sees are targeting 2% of company headcount, down from the old ~5% heuristic; it also describes a shift toward continuous forecasting and emphasizes auditable trails and finance approval controls for agent-handled work.