Business & Finance Update - November 24, 2025

Key Insights

1. AI Infrastructure Spending Continues Despite Efficiency Gains

Analysis: Enterprise AI spending reached $120B in Q3 2025, up 40% year-over-year. Paradoxically, this growth comes alongside significant efficiency improvements—inference costs dropped 60% over the same period.

The explanation: lower costs enable new use cases. Companies that previously couldn’t justify AI implementation now find it economical. This is analogous to cloud computing’s growth pattern—lower prices expanded the market rather than shrinking revenue.

Actionable Takeaway: For tech professionals investing in AI infrastructure stocks (NVDA, AMD, cloud providers), understand that efficiency gains don’t necessarily reduce spending—they often expand addressable markets. However, monitor whether current growth rates are sustainable as the easy use cases get implemented.

2. Remote Work Premium Stabilizes in Tech Compensation

Analysis: After volatile adjustments post-pandemic, compensation data shows stabilization: remote roles now pay 5-8% less than equivalent on-site positions in major tech hubs, but 10-15% more than local market rates in lower cost-of-living areas.

The premium for in-office work reflects genuine collaboration benefits and competition for local talent. But the persistence of remote premiums over local markets indicates sustained demand for distributed technical talent.

Actionable Takeaway:

• If you’re remote in a low-COL area, your effective purchasing power may exceed similar on-site roles—factor this into job decisions
• If negotiating compensation, benchmark against the remote market for your skill set, not just local employers
• Consider geographic arbitrage strategically, but note companies are increasingly sophisticated about location-based pay bands

3. Series A Valuations Reset to Pre-2021 Levels

Analysis: Median Series A valuations in enterprise software returned to $40-50M pre-money, down from $80-100M peaks in 2021. However, the bar for raising has increased—investors expect $1-2M ARR and clearer paths to profitability.

This reset creates opportunities for employees evaluating startup offers. Lower valuations mean equity has more upside potential, but only at companies meeting the new, higher bar.

Actionable Takeaway: When evaluating startup opportunities:

• Equity at current valuations potentially has more upside than 2021 vintage grants
• Due diligence matters more—assess runway, revenue metrics, and path to profitability
• Prefer companies that raised in 2023-2025 over those carrying 2021 valuations with unclear growth paths
• The fundraising bar is higher, but companies clearing it are more likely to succeed

Market Watch

• S&P 500: Up 1.2% for the week, tech sector outperforming
• 10-Year Treasury: 4.3%, stable after recent Fed comments suggesting rate cuts pause
• Bitcoin: $97,500, approaching psychological $100K level with institutional flows increasing

Note: Market conditions change rapidly. This analysis reflects information as of November 24, 2025.