01:21:15 · Jordi Hays, John Coogan
[01:21:15] S0: break it up and say, okay, you're gonna have an AI division and a gaming, you know, [01:21:20] S1: but gaming's like a rounding area. Yeah. I mean, they have some other stuff that's in there. I mean, I don't know. You break out CUDA or something. I don't [01:21:27] S0: I don't know how you force Jensen to sell off the majority of his jackets. [01:21:31] S1: Yeah. Yeah. Break up the jackets [01:21:33] S0: Pay down the national debt. [01:21:34] S1: But anyway, Jensen's been in DC. We saw him there a couple weeks ago, couple months ago and he's been doing the work to get to know Donald Trump and it has worked out spectacularly. And now, Jensen is the [01:21:46] S0: I have a I I we I I this will go unmentioned but I had a we have a friend of the show and Jensen walked up to us and the friend introduced himself and his company and Jensen didn't know the company and he's like, oh, it's so bearish for me. [01:22:03] S1: Wait, that was Jensen? Yeah. Oh, okay. I know the other side of that story. [01:22:07] S0: Didn't realize it. [01:22:08] S1: I thought it was a random person. [01:22:09] S0: He's like he really took it personally. [01:22:11] S1: Yeah. Well, [01:22:12] S0: you know, he's been on a generational run since. You wanna
01:22:12 · Jordi Hays, John Coogan
[01:22:12] S0: you know, he's been on a generational run since. You wanna [01:22:14] S1: be known by the greats? The folks who only worked at Denny's and then started a generational company. Never ignore anywhere This is an interesting thread by Kevin Bryan talking about how the New York Times is reporting on the AI action plan. Kevin says, come on man. There's no way you can read the AI action plan and think this is the first order thing that that the first order thing that New York Times readers should know about it. Anthropic is positive. AI has huge implications for the national economy, defense, future of science. Half this article is about copyright. It is wild how much tech journalism comes from a place of extreme hostility towards the technology. It often reads like a r f k writing articles about new pharmaceutical breakthroughs. No wonder the Silicon Valley set completely ignores this. And then he closes with a post about, 90% of mainstream writing on AI is one encoded bias, two theft of copyright, three wasting water and electricity ad nauseam. Gangs gang folks in these labs think they're curing cancer. Honestly, Who gives anything about one two and three given that even if those worries were true they aren't. If you think those three things are the most important policy issues or even the biggest downside risks of AI and I mean this in a let's be real not
01:23:35 · Jordi Hays, John Coogan
[01:23:35] S0: Yeah. Hard to argue that energy use by itself is a bad thing. Yeah. And it and it is true that data centers require an obscene amount of energy. We talked earlier this week about how Oracle's Oracle's partnership with OpenAI, where OpenAI will be spending $30,000,000,000 a year with Oracle by 2027, at least how it was reported, will require two Hoover Dams worth of of energy, which is an exceptional amount. But as energy production has gone up, so has human prosperity. [01:24:13] S1: There's plenty of water for the data centers. There's plenty of water to fill your Eight Sleep. You can go to 8sleep.com. Get a pod [01:24:21] S0: I'm back. Five year warranty. [01:24:23] S1: Three night risk free trial, free returns, free shipping. Go get a pod five. [01:24:27] S0: I've been ill. I finally put up seven and a half hours last night. I'm back in range. My HRV, I'm no longer looking dead. And I got over two hours of REM sleep last night. [01:24:40] S1: So we have been I'm feeling [01:24:41] S0: lot better too. [01:24:42] S1: From Andrew Zenhorowitz joining in just a few minutes. In the meantime, let's do some timeline. I wanna dig into this Financial Times article. [01:24:50] S0: I think we're gonna need more Let's
01:24:50 · Jordi Hays, John Coogan
[01:24:50] S0: I think we're gonna need more Let's [01:24:51] S1: do that later. The headline, of course, just to keep you up to speed is that NVIDIA chips worth $1,000,000,000 were smuggled into China after Trump export controls. We've heard about this black market. We've heard about people stuffing suitcases full of them and flying around the country. They're not the biggest thing in the world, so it's easy to route them around. There's always a question, could the government have done more? Could Nvidia have done more? What are Who are who are the truly the bad actors? There's the [01:25:18] S0: Crazy graphic right there. [01:25:20] S1: Good graphic. Love it. But we will we will cover this later in the show. [01:25:24] S0: Danish is throwing some shade at Ilya. He says, how you got 32,000,000,000? He doesn't have 32,000,000,000. And don't take the Turkey flight to restore the hairline. I would have Pavel Durov's myself into a Greek god instant. It was financially feasible. Dude does not give an f about anything but the mission incredibly bullish. [01:25:47] S1: Okay. You So don't think super intelligence is gonna be able to cure hair loss? Like that's gonna be the single prompt. [01:25:52] S0: Right before cancer? [01:25:54] S1: Probably. It does seem more tractable. It doesn't seem that crazy. Very rude. Anyway, people having fun on the timeline. Oh, well, we have Andreessen Horowitz partner, Vineeta joining in just a few minutes. And there's a post about Andreessen Horowitz. So James Lynn says a 16 z in Sutter Hill Ventures. [01:26:11] S0: What's the context here?
01:26:11 · Jordi Hays, John Coogan
[01:26:11] S0: What's the context here? [01:26:12] S1: Oh, yes. [01:26:13] S0: Avadon Yes. Rodonski says recently got asked which VC firm changed the game like Steph Curry did [01:26:19] S1: for metaphors and tech these days. You love to see it. [01:26:22] S0: It's tough when you know nothing [01:26:23] S1: about examples of VC firms that changed the game like Steph Curry did for the NBA, Andreessen Horowitz and Sutter Hill Ventures, but in completely different ways. James Lynn here says a 16 z realized that everyone was undervaluing startups and massively overbid 10 x what other people were offering. I don't know if that's actually happened that often that you go get a term sheet and interesting comes in at 10 x the price. But they've certainly been aggressive on pricing and it's worked out in many cases. Yeah. For early rounds 50% higher. But Yeah. But So it got them Twitter, Instagram, Coinbase, GitHub, Anduril, Airbnb, Slack. Round sizes went up after that. Sutter Hills saw trends in cloud computing, incubated Snowflake from idea to IPO. They made Mike Speiser, a partner, the interim CEO, hired the technical cofounders, funded the entire series a. They had 20% stake in Snowflake at IPO at a $33,000,000,000 valuation. [01:27:18] S0: Worth 12 it was a $12,000,000,000 position for So pretty much the best incubation of all time.
01:27:18 · Jordi Hays, John Coogan
[01:27:18] S0: Worth 12 it was a $12,000,000,000 position for So pretty much the best incubation of all time. [01:27:25] S1: So a 16 z finds talent and makes several outsized bets. Sutter Hill sees a trend and operationalizes one to two companies completely in house. Now larger rounds are the norm, and the venture studio model is much more common. That makes a ton of sense. We'll have to ask Vineeta about that when she joins. What else do we have here in the timeline? [01:27:46] S0: I also think you can't you you can't leave YC out of that group. Right? It's Who [01:27:50] S1: else changed the game? An [01:27:53] S0: different model but highly highly highly effective. [01:27:56] S1: Yeah. I think the initial YC, the way it changed the game was that it made it completely possible for college new grads to go and start a company without getting any experience in enterprise or in business. And so that was the initial arb. Like, Sandhill Road existed. Sequoia Capital existed, Kleiner Perkins existed. But if the Airbnb guys had gone straight to Sequoia. [01:28:23] S0: Family round to get a friends and family round done.