Orlando Bravo: AI valuations are in a bubble

AI Impact on Software - AI is considered a significant tailwind for enterprise software, benefiting companies through increased investment and customer adoption [2][6][7] - Concerns about AI being a threat to software are diminishing, with AI now viewed as a driver of new growth for the software industry [7] - Valuations in AI, both public and private, are considered to be in a bubble, with concerns about the ability of companies with $50 million in ARR to justify $10 billion valuations [4] Private Equity & Investment Strategy - The opportunity to transform billion-dollar software companies through private equity is larger than ever [5] - The firm focuses on profitability and growth together, emphasizing that companies should make the right investment choices and not depend on outside funding for constant growth [9] - The firm learned to buy software companies cheap and cut costs, a strategy developed during the dot-com bubble burst [3] Call Centers & AI Disruption - Call centers are identified as a sector ripe for disruption by AI, but the firm is investing in call center companies with next-generation AI solutions [9][11] - The firm believes that AI is additive to call centers, enabling companies to offer full platforms versus point solutions [11] Market Cycles & Valuations - Valuations in AI are at bubble levels [4] - It is difficult to predict cycles because it depends on investors optimism and their attitude towards taking risk [8]