Clouded Judgement: The Evolution of Benchmarks in AI and SaaS Valuation

The article argues that traditional AI model benchmarks are becoming obsolete as performance gaps narrow, paralleling Google's shift from index size to user experience. Simultaneously, benchmarks are evolving into domain-specific reward functions that train models rather than measure them. The piece concludes with comprehensive SaaS valuation data showing median 5.2x EV/NTM revenue multiple and median 108% net retention, with detailed operating metrics and Rule of 40 analysis across public cloud software companies.