"The VC's incentive is two things. One get the best return so that you can compete. If I'm only earning 12% and a pure VC is earning 20%, money is going to, go, where, it's, going to, be, well treated ..."

">> Hello, and, welcome, to, another, episode, of the OddLots podcast. I'm Joe Wisenthal >> and, I'm, Tracy, Aloway., You, know, sometimes uh with the whole AI thing, it feels like the are we back? Is ..."

"in terms of monetization. Like you know everyone got maybe. Okay. >> Right., Maybe. >> Yeah,, you're, right., Maybe >> yesterday, uh, or, uh, either, this, morning or yesterday uh anthropic $183 billi..."

">> It, is, indeed., Who, do, we, turn, to? >> I, love, this, vague, intro., We're, like, we just want to get have an excuse to get to the guest and so we're going to vamp for a little while and then w..."

"contenders. If uh you look at the top two video models that are out in the world today, uh one US company which is ours called Runway ML and the other which is Veo 3 which is absolutely stunning and i..."

"Gemini and beyond. >> So, Darkhorse, uh, I'd, be, pretty, bullish. >> Joe,, did, you, immediately, run, to, the, Nano Banana website? >> Yeah,, I, did., As, soon, as, you, said, I, had not used it. I'..."

"one on the hardware. >> That's, very, interesting., And, um, yeah, I'd heard I haven't done much with on device things. A friend of mine was telling me that um Alibaba's model Quinn works very well on..."

"a very uh suppressive DOJ and FTC that basically said no no M&A we're coming after you you know big tech companies uh we don't want to see more consolidation you have too much power so they started do..."

"tie-ups and holdbacks that are a pendulum swing away from the super founder friendly dynamics where venture capitalists were tripping over themselves to basically give the most founder friendly terms ..."

">> No., I, mean,, look,, you, have, non-competes that are not enforceable in California a little bit more enforceable in New York. you have arbitrage and jurisdictional stuff. Um, broadly I would say ..."

"giving 5% by law of your uh uh charitable assets every year. you want to continue to earn more than 5% so that you can grow that base and invest in campuses and scholarships or expand hospital systems..."

"and then we'll get to the founders liquidity is you have this weird dynamic of what I've called the minnows and the megas in venture capital. This is in preview a shakeout that is going to happen. Uh ..."

"voluntary exits which is another interesting dynamic. And there's a playbook for this which is 2009 to 2014 all the big private equity firms reached a level of scale several hundred billion dollars au..."

"going to invest just like you said, Joe $50 million, but we're going to give you 20 million of liquidity." Okay. Now, I will say this, 2019, I'm on a Zoom call for an amazing company called Control La..."

"me to a question that like I'm going to admit I I've never quite understood this, but like what exactly is the attraction for VC investors to open source models as opposed to closed source where like ..."

"source >> it's, interesting, because, I, I, hear, you that okay maybe the value doesn't keep acrewing to the closed source AI foundation labs. Um or maybe the value doesn't keep uh acrewing to the one..."

"little bit. That being said, I don't fully buy it. And here's why. Um because in the era of businessto business SAS which was the 2010s let's say I had some Y combinator company and I like all right I..."

"that it's not like the the B2B SAS era that allows uh a talented person to take a lot of value out the door with them. you you are 100% correct in that it is more sophisticated software and algorithms..."

"you are right in that the human intelligence of this in this early stage which is why you are seeing the machinations with the breaking news you're even reporting of almost like a crazy NBA draft or f..."

"Cognition and he has attracted talent and there's no way that Scott is selling to Google or Meta. I mean, his ambitions >> uh, and, it's, born, in, like, an, ethical long-term I just want to get the b..."

"free food and some stockbased incentives, >> kombucha, on >> Yeah,, that's, right., Um,, that, was, enough to attract people to the company and keep them. >> Is, it, a, different, story, now? >> If, I..."

"people. Uh now any one of those people could decide I'm going to go off and start my own thing which by the way is often the case of why you are seeing people leave OpenAI or this or that. As these co..."

"intelligence which is the founder uh which was the company founded by the open AI co-founder ga for $32 billion. This is a company that as far as I know doesn't really have anything that anyone uses. ..."

"capital number one. >> Number, two,, many, of, them, are, actually saying to your point no to Zuck. They are turning him down. And what's he saying in return? You don't come to work for me almost mafi..."

"phallic rockets and send them up to space. And we all benefit from that. We benefit from the fact that right now the number one person that Mark Zuckerberg wants to beat is Dennis Sabis of Google. >> ..."

"people are chasing now. They want to make history. >> So, you, touched, on, hardware, and, also closed source models. Are there any other areas in the AI space that you think are maybe overhyped at th..."

"enough on all the twodimensional stuff. Today with oneshot learning, meaning maybe 30 seconds of audio, 11 labs or some of the other voice models can capture you with an iniccernable probably 90% simi..."

"area of opportunity. The other big area of opportunity is biology. Being able to go from a prompt to a protein to be able to design a drug biology is really complicated. Computer scientists often unde..."

"recording >> and, that, is, going, to, be, a, super, valuable and very competitive area >> and, very, controversial, freak, the, heck out about this >> an, incredible, utility, and, look, people have ..."

"symbiotic and you will see I predict and I wrote about this in our quarterly letter Lux that there is a cohort of people that basically start fighting for AI rights. >> Yeah., Yeah., Yeah. >> We're, g..."

"Tracy. I love talking to Josh. I'm really concerned about this whole life recording thing, but I know it's happening. There was a good article I think in the um SF Standard. I read like it's not just ..."

"GPUs and closed source models. I really liked his answer on founder liquidity that sometimes you can maybe keep the founder sticking with the mission as opposed to bailing with the mission if you can ..."