TOPIC • 6 CLAIMS

AI Disruption

AI as an operating reality for businesses, distinct from AI as a trade.

  1. HOWARD MARKS/

    Direct lending carries far heavier software exposure than the public credit markets do, which turns a sector-specific AI shock into a portfolio-level one.

    • software is 4-5% of high yield bonds
    • 10-15% of broadly syndicated loans
    • 20-30% of direct lending
    WHAT'S GOING ON IN PRIVATE CREDIT?
  2. HOWARD MARKS/

    Adoption reached a scale in two years that most technologies need a decade for.

    • roughly 400 million individual users
    • 75-80% of companies, as of February 2026
    AI HURTLES AHEAD
  3. HOWARD MARKS/

    He tracks capability by year to argue the rate of change itself is the thing being mispriced.

    • unable to do basic arithmetic in 2022
    • passing the bar exam in 2023
    • writing working software in 2024
    • completing tasks autonomously by 2026
    AI HURTLES AHEAD
  4. HOWARD MARKS/

    He cites recursive self-improvement as having arrived in a shipped product.

    • GPT-5.3-Codex described by OpenAI as instrumental in creating itself
    AI HURTLES AHEAD
  5. HOWARD MARKS/

    He points to physical-world deployment as evidence this is not confined to demos.

    • Waymo handles roughly one-fifth of San Francisco taxi trips
    AI HURTLES AHEAD
  6. HOWARD MARKS/

    He frames the economic transfer in terms of labor value migrating to compute.

    • $150-250 billion in annual labor value migrating to AI compute, in software alone
    AI HURTLES AHEAD

Claims are restated; figures are the authors' own. Each links to the document it came from, which in turn links to the original in full.