Big AI Platforms vs. Specialized Tools

Summary

MarTech Podcast ™ // Marketing + Technology = Business Growth

Episode: Big AI Platforms vs. Specialized Tools
Release Date: June 3, 2025
Host: Benjamin Shapiro
Guest: Tom Chavez, Co-founding General Partner at Superset

---

Introduction

In this episode of the MarTech Podcast ™, hosted by Benjamin Shapiro, listeners are introduced to Tom Chavez, a seasoned entrepreneur and venture capitalist. Tom brings a wealth of experience from building and selling startups to major tech giants and now spearheads a venture studio focused on funding data-driven AI applications that deliver tangible business results.

Guest Background

Tom Chavez is a co-founding general partner at Superset, where he leverages his extensive background in building successful startups to identify and nurture early-stage companies with high growth potential. His expertise lies in the intersection of marketing and technology, particularly in how AI can be harnessed to drive business growth.

Main Discussion: Big AI Platforms vs. Specialized Tools

The core of the episode centers around the debate between investing in large, monolithic AI platforms like OpenAI versus specialized, early-stage AI tools such as Yellow Pad, a startup focused on AI-driven contract review in the legal tech space.

Investment Perspectives

Tom Chavez shares his investment philosophy, emphasizing a preference for early-stage startups over established AI giants. He articulates his reasoning as follows:

"I am betting with my own money and my time and my own sweat on the early stage startups. I think there's a lot of opportunity, particularly at the not so caffeinated valuations for those early stage startups where if you're doing it right and picking intelligently, there's a lot of wealth to be created in that sector."
— Tom Chavez [02:02]

Tom highlights the high operational costs associated with large AI platforms, citing the significant expenses in compute and electricity. He questions the sustainability and scalability of such platforms, pondering how companies like OpenAI plan to achieve substantial free cash flow in the long term.

"The cost of compute, the cost of electricity are just staggering. It's unbelievable what they've achieved. But the question for me is how does OpenAI get to $10 billion or $20 billion of free cash flow?"
— Tom Chavez [02:02]

He further critiques the "winner take all" nature of the AI industry, expressing skepticism about the ability of monolithic platforms to maintain dominance without substantial and continuous financial backing.

"It's a winner take all kind of game where they just have to keep betting that they can get enough money from the Saudis or whomever to keep it going such that the other players get washed out."
— Tom Chavez [02:02]

In contrast, Tom advocates for the potential of specialized AI tools, which operate in niche markets with lower valuations and higher opportunities for growth and innovation. He believes these startups are better positioned to create meaningful value and achieve sustainable success.

Strategic Implications for Marketers

The discussion underscores the strategic choices marketers and businesses face when integrating AI into their operations. Investing in specialized tools can offer more tailored solutions and agility, whereas relying on large AI platforms may entail higher costs and dependency risks.

Notable Quotes

• Tom Chavez [02:02]:

  "I am betting with my own money and my time and my own sweat on the early stage startups. I think there's a lot of opportunity, particularly at the not so caffeinated valuations for those early stage startups where if you're doing it right and picking intelligently, there's a lot of wealth to be created in that sector."

• Tom Chavez [02:02]:

  "The cost of compute, the cost of electricity are just staggering. It's unbelievable what they've achieved. But the question for me is how does OpenAI get to $10 billion or $20 billion of free cash flow?"

• Tom Chavez [02:02]:

  "It's a winner take all kind of game where they just have to keep betting that they can get enough money from the Saudis or whomever to keep it going such that the other players get washed out."

Conclusion

The episode wraps up with Benjamin Shapiro summarizing the insights shared by Tom Chavez, emphasizing the importance of strategic investment in AI technologies. Tom's perspective offers valuable guidance for marketers and businesses navigating the evolving landscape of AI, highlighting the benefits of supporting specialized tools that promise innovation and sustainable growth over the high-stakes realm of large AI platforms.

Listeners are encouraged to connect with Tom Chavez through his LinkedIn profile or visit Superset's website for more information. The episode concludes with a reminder to subscribe for more in-depth discussions on marketing and technology.

---

Connect with Tom Chavez:

• LinkedIn
• Superset
• Tom's Podcast: Closed Session

Subscribe to the MarTech Podcast ™:
Stay updated with the latest in marketing and technology by subscribing through your preferred podcast app or on YouTube.

Production: I Hear Everything
Looking to launch or scale your podcast? Visit iheareverything.com for podcast production, growth, and monetization solutions.

---

This episode provides a concise yet comprehensive exploration of the strategic considerations in AI investments within the marketing technology sphere, offering actionable insights for professionals aiming to leverage AI for business growth.

Transcript

[Benjamin Shapiro]

The Martech Podcast is a proud member of the I Hear Everything Podcast Network. Looking to launch or scale your podcast, I Hear Everything delivers podcast production, growth and monetization solutions that transform your words into profit. Ready to give your brand a voice? Then visit iheareverything.com.

[Tom Chavez]

From advertising to software as a service to data across all of our programs and clients, we've seen a 55 to 65% open rate. Getting brands authentically integrated into content performs better than TV advertising. Typical lifespan of an article is about 24 to 36 hours. If we're reaching out to the right person with the right message and a clear call to action, then it's just a matter of timing.

[Benjamin Shapiro]

Welcome to the Martech Podcast, a member of the I Hear Everything Podcast network. In this podcast you'll hear the stories of world class marketers that you technology to drive business results and achieve career success. Here's the host of the Martech Podcast, Benjamin Shapiro.

[Tom Chavez]

I'm Benjamin Shapiro and joining me today is Tom Chavez, a co founding general partner at Superset. Tom has built and sold startups to some of the biggest tech companies in the world and now he runs a venture studio that funds data driven AI applications to deliver practical business results. And today Tom and I are going to delve into what's real and what's not when it comes to AI's impact on marketing. Tom, I want to move on to our lightning round where I'm going to ask you a couple of marketing Martech questions related to the AI arms race. Are you ready?

I'm ready.

All right, here's a good one. I want you to pick one. Would you rather invest in OpenAI, a monolithic AI platform or Yellow Pad, an early stage AI contract review legal tech startup?

I am betting with my own money and my time and my own sweat on the early stage startups. I think there's a lot of opportunity, particularly at the not so caffeinated valuations for those early stage startups where if you're doing it right and picking intelligently, there's a lot of wealth to be created in that sector. I think the larger platforms like let's look at this OpenAI, the cost of compute, the cost of electricity are just staggering. It's unbelievable what they've achieved. But the question for me is how does OpenAI get to $10 billion or $20 billion of free cash flow? Their current valuations, which continue to rise, are premised on something free cash flow generation. Roughly along those lines, you look at it today, it's not clear how they get there. It's a winner take all kind of game where they just have to keep betting that they can get enough money from the Saudis or whomever to keep it going such that the other players get washed out. And that's happened before in tech, and maybe it'll happen here. But I'm not going to go and write a check at that valuation today because it's hard to see a path I wish I'd gotten in four or five years ago. Absolutely, yes. But at today's stratospheric valuations, I just don't get it.

Who can blame you for not giving your money to a nonprofit? And that wraps up this episode of the Martech Podcast. Thanks to Tom Chavez, the co founder and general partner at Superset, for joining us. If you'd like to contact Tom, you could find a link to his LinkedIn profile, which is in our show, not on martechpod.com or you can visit his company website, which is superset.com you can also find Tom on his podcast, which is closed session. If you haven't subscribed yet and you want a daily stream of marketing and technology knowledge in your podcast feed, hit the subscribe button in your podcast app or on YouTube and we'll be back in your feed next week. Okay, that's it for today, but until next time, my advice is to just focus on keeping your customers happy.

Foreign.

[Benjamin Shapiro]

Thanks for listening to the Martech podcast and I hear everything. Production Looking to launch or scale a podcast like this one for your brand? Then visit iheareverything.com.