With OpenAI’s o3 and o3-pro price cuts yesterday(80–87% drop), firms that don’t adopt LLMs for research, investor relations, and diligence automation will spend 6–10x more for the same outputs, or waste headcount doing what AI now handles in seconds.
👉 Not using o3 is now a seven-figure mistake over the life of a fund. That is some crazy sh*t.
If you’d like to learn how to embed o3 in all of your fund’s workflows and close $27,866 every day of the year, click here.
🔥 Head-to-Head: Doing It vs. Not Doing It
📊 Example: Mid-sized investment firm (20-person team, $2B fund, 15 LPs in motion)
🧨 Annualized:
With o3: ~$12,000
Without o3: $120,000–$180,000
👉 Delta: $108k–$168k/year in avoidable OPEX
Now extrapolate that over a 5-year fund life. Yep, you're looking at $500k–$800k in margin leakage if you skip this.
📉 The Cost to LPs of You Staying Manual
✂️ Lower Fund Margins
More $$ spent on humans and agencies = lower Net Management Fee margin
Worse operating leverage, even at scale
🐢 Slower Diligence = Missed Opportunities
LPs ask questions. You take 3 days to respond. Your competitor using o3 responds in 2 hours, with citations and visuals.
LPs remember who helped them think faster.
💀 Shrinking Differentiation
Fund managers talk about “value add.” But if your stack looks like it's from 2019, you're not impressing LPs with 2030 money expectations. Think about that.
🧠 Bottom Line: You Either Embrace This, or Fall Behind
If you’re not investing $1k/month into LLMs, now that OpenAI’s o3 is priced for scale—you are:
Paying 10x more to do the same work manually or via contractors
Losing deals and LPs to faster-moving peers
Forfeiting operating leverage that could boost fund-level IRRs
There is no longer a price barrier. There’s only an execution barrier.
Can we do better than shrilling the AI consortium without balance? Will companies be better served with coming up with new ways to grow their people brands instead of the productivity race to the bottom. Is all this fear mongering good for the US? Will that continue to splinter the "anything but the US" trend which may be related to the lack of authenticity driven by the tech giants that can't even keep their millions of servers up and going. (But get more than 40 billions a year for the uptime/convenience play).
Fascinating read! I’m Harrison, an ex fine dining line cook. My stack "The Secret Ingredient" adapts hit restaurant recipes for easy home cooking.
check us out:
https://thesecretingredient.substack.com