AI poses an existential threat to prosumer creative tools like Canva because consumers prefer using native AI interfaces (ChatGPT) over separate apps.

3:28is it a new new thing that makes them obsolete? And to me, that's the meta question. It's not about 30% growth versus 20% growth because of a little bit of gross margin compression. If that was the only issue, we could talk about that. That's a kind of second order business model issue. The real question for all these companies, are you 30 on the way to 20 on the way to 10? Because

3:47there's a whole new set of companies doing this and I know Jason, you guys are in Higsfield. Um, or is this something you can incorporate and kind of survive and continue to grow? So, I think that's the question. And Jason, I'd love to get your thoughts. >> I don't know, man. I found it kind of depressing the Canvas stuff because um Canvas seemed to me one that obviously

4:08AI was maming. um every every chat GPT release, every Higsfield release, every L's, you can do more and more of its functionality in core AI, right? This is what we fear as investors is that you can do our investments in chat GBT or claude, right? That's the ultimate fear. Um but yet it seems somehow Canva was defying that gravity like it it it seemed it was it was a non-issue despite

4:32my me having churned and Amelia having churned. We churned um just not because it this is a tough one. Canva and Notion both we churned not because they're not great apps. We just no longer had any need for them in the agentic area. Just no need. Canva and Notion did nothing wrong at all. Nothing. And we didn't need them. But until this it it seems somehow I I was wrong like they were

4:54defying gravity. But 30 to 20 in one year. I know I love Rory's optimism that they're going to bounce off and get back to 30 or 40 next year when they find a few extra tokens under the under the covers. I think it's a ter terrifying and it's a little I was hoping they were defying gravity but it doesn't look like it. It it doesn't >> defending myself on the optimism charge

5:13because no one ever accused me of optimism. I actually didn't say that. I what I said was that's the implication that they're saying. I don't know the answer. genuine comment here, right? And look, and I'm going to advance the bold case to some extent, just articulate it more because again, what the CEO is saying is look, we can't envelop it in AI because we were using Frontier models

5:34and they're just costing us a [ __ ] ton. And ex and so the first shoe that's clearly going to drop is they're not going to continue to spend a whole bunch of money with entropic or open a probably open AI given its images of course were but um they now bought their own um model and are building their own in-house image focused model which makes absolute sense so let's assume they do