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RiskReversal Pod

Jeff Richards: These Are The Only Software Stocks Worth Owning Right Now

RiskReversal Pod

RiskReversal Media

Investing, Business, News, Business News

4.7836 Ratings

🗓️ 25 March 2026

⏱️ 52 minutes

🧾️ Download transcript

Summary

Dan Nathan and Jeff Richards (Managing Partner at Notable Capital) discuss shifting AI narratives and market crosscurrents, focusing on OpenAI, Anthropic (which Notable backs), xAI, Gemini, and Microsoft’s Copilot. Richards argues Claude/Cowork’s breakout and rapid model improvement are forcing every software company to ask whether its product improves as models improve, while public-market uncertainty has pressured SaaS valuations even as enterprise AI demand accelerates. He says net-new IT spend is increasingly flowing to private AI companies with consumption-based pricing, while incumbents face the Innovator’s Dilemma and pricing cannibalization. They also cover cloud infrastructure demand, opaque private-company financials, IPO considerations, and how volatility and redemption dynamics in private credit are weighing on alt managers like Apollo, KKR, and Blackstone, though Richards expects any issues to be relatively contained. Articles Mentioned OpenAI to double workforce as business push intensifies (FT) xAI Sends Engineers to Client Sites to Win Business from OpenAI (Bloomberg) Microsoft Copilot Is Confronting Its Identity Crisis (Bloomberg) —FOLLOW USYouTube: @RiskReversalMediaInstagram: @riskreversalmediaTwitter: @RiskReversalLinkedIn: RiskReversal Media

Transcript

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0:00.0

When will M&A activity pick up? Will this year mark the return of IPOs? Listen to strategic alternatives,

0:07.2

a podcast from RBC Capital Markets, to get insights on these questions and more. Explore the trends in

0:14.0

market forces impacting deal flow and find out how companies, investors are shifting their strategies

0:19.3

to drive growth and unlock value.

0:21.7

Listen and subscribe to Strategic Alternatives Today, available wherever you get your podcasts.

0:27.7

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0:31.1

Of course I am.

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com slash okay. Current is a financial technology company, not a bank. Banking services provided by

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not a bank. Eligibility and available amounts may vary and are subject to change at any time.

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For full terms and conditions, visit current.com or call 888-851-1172 for more information.

2:04.7

Welcome to the OK Computer Podcast. I am Dan Nathan. That is Jeff Richards. He is a managing partner at Notable Capital. Jeff, welcome back to the podcast. Great to see you again. All right. Well, we just saw each other the last week, which is kind of fun. And by the way, I don't know why you're out there on the West Coast. I'm here on the East Coast. I don't know why we didn't pod together last week, but you had a busy week and you were meeting with some of your New York founders. We got to have dinner with one of the most excellent ones. That's our friend, Eilersela. He's the founder and CEO of Slice, which you introduced me to five years ago, and they are killing it. I'm really psyched that he and I become friends because of you. Awesome. Yeah, great, great founder and a great human being. And I love what they're doing with the pizza industry. Yeah, well, wait until you see Guy and I are doing this limited series. It's already done taped, recorded. It's in post-production. It's called Standing Table. And Guy I and I did a session, a live pod on video at Grimaldi's Pizza in Brooklyn. It was awesome. So that's going to come out in the next month or so. I love it. That's great. Yeah, he's a man. Great, great story. So we will be sure to push that one out. All right, Jeff, you and I have a lot to

2:35.0

talk about. You know, there's a lot going on in your universe in the private markets. And I know

2:39.8

that you always keep a very close eye on the public markets. And just there's some stuff going on.

2:45.0

There's some cross currents that are worth speaking about because some of them seem very obvious

2:49.3

and others are less so and in your

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