Editors Note: Hi all. I am headed to South Africa for family get togethers. Back in early January. Andrew is traveling throughout January. This is my year end sign-off. See you around 19 January 2026.
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As a Holiday gift here is a catalog of this years newsletter and podcast episodes with a review.
Editorial: The Path to Abundance
The Path to Abundance: AI’s Maturation and the Rise of Human²⁰²⁶
This week’s stories signal a pivotal maturation phase for the AI revolution, clearing a deliberate and healthy path toward future abundance. While capital markets are currently applying a rigorous “stress test” to valuations and debt levels, the underlying reality is one of unprecedented innovation and the birth of a more resilient ecosystem. Rather than a collapse, we are witnessing a system that is refining itself, moving away from the “frothy” speculative marks of the past and toward a future where market discipline and fundamental value dictate a trajectory toward exponential gains.
Massive fundraises—from Lightspeed’s record $9 billion across multiple funds to Amazon’s rumored $10 billion-plus strategic bet on OpenAI—should not be viewed as reckless spending, but as a “strong vote of confidence” from institutional investors. These moves are securing what many experts describe as the “greatest gift to venture” in our lifetimes. We are moving past the era of “paper wealth” toward a landscape where execution compresses multiples and fundamentals take center stage. Companies like Notion, which reached an $11 billion valuation through relentless revenue catch-up rather than constant fundraising, and Databricks, which commands a massive valuation lead due to its $1 billion AI revenue edge, are proving that the new playbook is about sustainable, high-impact growth.
The massive infrastructure buildout, though currently straining credit markets and causing hyperscalers to issue $121 billion in bonds, is the essential foundation of the “Abundance Agenda”. When companies like Oracle and Amazon take on significant debt to build data centers, they are hedging for a future that requires an industrial base capable of delivering inexhaustible energy and widespread prosperity. As leadership at OpenAI has noted, compute is the fundamental constraint on value creation today. The math is clear: doubling compute capability could double revenue immediately, making these massive capital expenditures a strategic necessity for securing tomorrow’s gains.
We are also entering the “Off-Screen Revolution,” where AI moves beyond digital interfaces and into the realm of Physical AI. This represents the next wave of the revolution, where intelligence is embedded into tangible, real-world products like robotics, autonomous vehicles, and advanced manufacturing. From Tesla testing driverless robotaxis in Austin to the rise of companies like Nvidia and Samsara that use computer vision and IoT to solve “messy, unstructured” real-world problems, AI is finally transforming the physical economy. This shift promises to bring new levels of efficiency, safety, and sustainability to industries like construction and logistics, which represent trillions of dollars in economic activity.
This technological shift is mirrored in the workforce, which is not facing an apocalypse but a sophisticated evolution into Human²⁰²⁶. Current innovations are creating “tools amplifying judgment”, allowing professionals to focus on high-level strategy rather than routine tasks. This is best exemplified by the “Vibe Coding” revolution, where platforms like Lovable allow creators to build complex software simply by “chatting” with AI. By using natural language prompts to generate and debug code, developers are tripling their productivity and lowering the barriers to entry for millions of new creators. This isn’t about replacing people; it’s about an era where AI assistants handle the drudgery, acting as “digital colleagues” that fuel strong revenue growth.
Looking ahead, the horizon is bright with “Existential Hope” and a renewed sense of global possibility. We are standing on the edge of a spectacular IPO boom as “big beasts” like SpaceX, OpenAI, and Anthropic prepare to move to public markets. These debuts will be unprecedented, not just in their scale—with valuations in the hundreds of billions—but in the way they will reinvigorate public markets by channeling massive capital into world-changing research and infrastructure. While the current “unwinding” strains the system, it is ultimately birthing a more resilient financial landscape that is better prepared to steer capital toward the infrastructure of the future.
Happy Holidays,
Keith Teare
A reminder for new readers. Each week, That Was The Week, includes a collection of selected essays on critical issues in tech, startups, and venture capital.
I choose the articles based on their interest to me. The selections often include viewpoints I can't entirely agree with. I include them if they make me think or add to my knowledge. Click on the headline, the contents section link, or the ‘Read More’ link at the bottom of each piece to go to the original.
I express my point of view in the editorial and the weekly video.
