a16z New Media · 2026-02-20 · 104d

Vertical SaaS Renaissance, LLM Retention Surge, and AI Hardware Demand Wave

Vertical SaaS demonstrates strong sales momentum with improved quota attainment and lead sentiment outpacing enterprise peers. LLM products show exceptionally strong retention curves with ChatGPT's rates improving continuously and Gemini exhibiting a 'smiling' curve. Open-source AI models are rapidly capturing market share while AI adoption drives unexpected hardware demand spikes for Mac minis and Raspberry Pis.

14 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

COGS as Share of Revenue - S&P 500 Median

67 to 55%

median

30-year decline from Dotcom era to present

ChatGPT Retention Inflection Week

23weeks

point estimate

upward inflection from baseline decline

Daily Active User Minutes - AI Apps

20+minutes/day

range (leaders)

Deepseek and Claude leading, followed by Grok, ChatGPT, Gemini

GLM-5 Market Share - Token Consumption

10%

point estimate

OpenRouter, open-weight models

Gemini Smiling Curve Recovery Week

10weeks

point estimate

recovery point after initial dip

IT Service Spending Growth - Carlyle Private Cos

33%

annual rate

3x faster than prior year

Mac Mini Price Increase Post-OpenClaw

15%

range estimate

new units, from ~$500 to ~$570

MiniMax Market Share - Token Consumption

25%

point estimate

OpenRouter, open-weight models

OpenClaw Token Share - OpenRouter

13%

peak observation

two-week period following release

Operating Margins - S&P 500

historical highsrelative

peak observation

coinciding with SG&A and COGS declines

Quota Attainment - Vertical SaaS

improved dramaticallyrelative performance

categorical

vs Finance & ERP, Marketing, Productivity enterprise categories

R&D Growth - Year-over-Year

15%

mean

with acceleration through year

Raspberry Pi 8GB Price Surge

50%

range estimate

following OpenClaw and tutorial proliferation

Top 3 Open-Weight Authors Combined Share

45%

point estimate

OpenRouter token consumption