We Have Entered the Agentic Era
AI agents are autonomous systems that can reason, plan, and complete tasks. In our view, an imbalance between agent-driven demand and constrained infrastructure supply has profound implications for tech, capital investment, and market leadership.
Brad Neuman: We have entered the Agentic AI Era.
At the center of this shift is the rapid adoption of artificial intelligence agents. These are autonomous systems that can reason, plan, and complete tasks. Instead of responding to prompts to simply provide information, they execute workflows to achieve goals.
As agent usage has scaled, demand for computing capacity has accelerated sharply.
A powerful example is OpenClaw, an agentic AI platform launched in November 2025. In just months, it became the most liked open source software project amongst developers, surpassing foundational projects like Linux that took decades to build their communities. We believe that tells us something important; the community response makes clear that agentic systems represent a fundamental leap forward in how software is created.
Agents like these are now writing code for other AI models. In fact, the creator of Claude Code, which is itself a coding agent, has said he no longer writes code at all because the software he created is writing its own software, creating a recursive loop of productivity and innovation.
I have seen this personally as well. I recently evolved from not having any coding experience, to using Claude Code to build websites and apps in days. Today, however, I simply ask my own AI agent, Lumis, to perform tasks. Take a look.
Here you see me ask Lumis to build a fund comparison site. He grabs the data, codes and builds the website, and then interacts with a hosting company to push it live.
The result of this agentic AI revolution is an explosion in software creation and other use cases across the economy.
In fact, software code production is on pace to grow to be more than 14 times larger than last year, according to the COO of GitHub.
All of this activity is driving an acceleration in demand for artificial intelligence. Data suggests that tokens, the basic unit of artificial intelligence, are increasing well over 10x year-on-year as more compute hungry agents are put to work.
On a practical level it has manifested itself in soaring mobile applications as well as digital books and music.
While demand is surging, we believe the problem is supply.
There simply is not enough AI data center capacity online, or coming online fast enough, to keep up with this surge in demand. In our view, power, GPUs, memory, and networking all represent real bottlenecks. This chart shows the astronomical price increase in flash memory which is an important component in serving artificial intelligence.
In our view, this imbalance between the flood of agent-driven demand and constrained infrastructure supply has profound implications for technology, capital investment, and market leadership. We believe AI enablers, those companies that provide the infrastructure for models and agents, should continue to post strong fundamentals and disproportionally capture the value of AI, in our view.
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