Dear Investor,

Welcome to 5AM Capital Currents, our chart of the month, where we pull out a single data point that is shaping how we think about the portfolio.

For the first time in the internet's history, most of the web's traffic is no longer human. As of June 2026, Cloudflare data shows 57.5% of web requests now come from bots and AI agents, versus 42.5% from people. CEO Matthew Prince had forecast this crossover for 2027, but agentic AI has pulled it forward by roughly 12 months.

Where a person shopping for an item might check three sites, an AI agent will work through thousands to complete the same task. As we delegate more of that work to machines, the web is quietly being rebuilt around them rather than us. The economics it was built on, advertising, referral clicks, and human attention, are being rewritten in real time.

For the Fund, the question is not whether this is happening but who gets paid as it does, and whether we own them. A few notes on where we sit.

The first wave went to the chipmakers, the pick-and-shovel sellers of the buildout. We have deliberately passed on owning semiconductors directly. The hardware layer is cyclical and capital intensive, and it does not clear our quality bar. We would rather own the businesses that monetise the activity these chips enable, year after year, than the silicon itself.

The second wave accrues to the cloud and hyperscale layer, the infrastructure on which agentic workloads run. This is where we are positioned, through our holdings in Amazon (AWS) and Microsoft. These are the toll roads of the agentic web. As agents proliferate, the compute they consume runs through a small number of dominant platforms with enormous pricing power and scale.

The third layer is payments. When an agent completes a transaction, it still settles over the same rails. We hold Visa as optionality on this, a business that takes a small clip of an ever-growing volume of digital commerce, regardless of whether the buyer is a human or a machine acting on their behalf.

We will not pretend to know the exact pace of this shift. But the direction is clear, and the businesses we own are positioned to collect tolls on this transition rather than pay them. That is what the framework is built to find.