Ben Lorica sits down with Evangelos Simoudis to unpack why open-weights models are closing the gap with frontier labs and pushing enterprises toward “corporate AI sovereignty.” They then apply an attenuation-funnel lens to AI coding tools — more code, but far less shipped software and usage growth — before turning to “neoconsulting,” the outcomes-based services model reshaping Accenture, Palantir, and the big Indian IT firms.<br>Subscribe to the Gradient Flow Newsletter 📩 https://gradientflow.substack.com/<br>Subscribe: Apple · Spotify · Overcast · Pocket Casts · AntennaPod · Podcast Addict · Amazon · RSS.<br><br>Detailed show notes and transcript, can be found on The Data Exchange web site.

AI Is Producing More Code, but Is It Producing More Value?

The Data Exchange with Ben Lorica

Alright, so we're back with my friend Evangelos Simoudis of Synapse Partners. His blog is at corporateinnovation.co. We are recording this on July 10, 2026, morning of. Episode notes where I will place links to all the things we talk about is on the dataexchange.media. Hit the subscribe button if you're on YouTube.

And subscribe wherever you get your podcasts. So, alright, so topic number one, the rise of open models and our belief that open models will ultimately prevail. So, Evangelos, you start.

So, a lot of this is coming out from the research that I've been doing on legacy enterprises and the use of AI by them, as well as the work that our firm has been doing with such corporations.

And I would say enterprises have embarked on a journey for AI. Most of them, if not all of them, are starting from frontier models. But very quickly, their CFOs are starting to recognize the very high costs that are associated with such models. And also, what it means for their own data.

So, they are, as part of this journey, they're starting now to ask questions and in some cases already started utilizing models that they, A, they can modify with their data. And B, B, models that will allow them to have full corporate sovereignty, for lack of a better term, as well as better control their costs.

And, obviously, certain types of open models will allow them to do that. Frankly, I also believe that over time, and this is what we are advising these corporations, they should use such models as part of their journey. But ultimately, they will have to build their own models, because they don't have to be big.

AI Is Producing More Code, but Is It Producing More Value?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

AI Is Producing More Code, but Is It Producing More Value?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.