Enterprise Penetration and Token Demand: A Tale of Two Free Cash Flows

In our view, the market hasn't fully digested two very good data points from the past several weeks, and the stocks around them aren't yet getting full credit for what they mean for the durability of this cycle.

Yesterday, Meta released Muse Spark 1.1, undercutting the field on both price and speed rather than trying to out-frontier the frontier. Weeks earlier, Z.ai released GLM-5.2, an open-weight Chinese model that's since climbed above Anthropic on OpenRouter and near the top of the Artificial Analysis intelligence index - at roughly a sixth of the cost of the leading US models it's being compared against.

Together, they tell us something critical about where this market is going and how we think about positioning around it from here.

Below, we work through what that means for enterprise adoption, for token demand, and for who ultimately captures the value.