In this episode of FYI, Brett Winton and Charles Roberts sit down with Michael Stewart of M12, Microsoft’s venture fund, to examine how AI is reshaping software, infrastructure, and investment strategy. Michael explains how M12 identifies emerging signals across the AI ecosystem, from generative AI adoption to enterprise spending shifts. The conversation covers the evolution from SaaS (software as a service) to AI-driven models, pricing dynamics, and the growing importance of compute efficiency. They also discuss future opportunities in consumer AI, material science, and the need to rethink the data center as demand for AI accelerates.

Key Points From This Episode:

00:00:00 Introduction to M12 and its role within Microsoft

00:04:41 The current AI landscape and platform shift thesis

00:09:47 The gap between technical capability and user adoption

00:14:33 Compute constraints and the need for model efficiency

00:20:55 The concept of “wholesale AI” and token-based enterprise models

00:28:00 Uneven AI usage across users and organizations

00:31:47 Capturing value: productivity gains vs. software pricing

00:35:34 Investment themes: consumer AI and smart TV experiences

00:38:58 AI in science and material discovery opportunities

00:44:35 Introduction to the data center of the future

00:51:35 Capital markets, AI demand, and infrastructure investment gaps

00:55:53 Why current AI investment narratives may be backward-looking

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

The Token Economy: AI Infrastructure And The Future Of Compute