The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
00:43:25 · Harry Stebbings, George Sivulka
[00:43:25] S1: OpenAI at one sixty, Anthropic at 40 Yep. Or XAI at 50. Which one do you buy? [00:43:30] S0: I think XAI is the most undervalued company and a really spicy take. I actually think XAI might overtake OpenAI and Anthropic into value over the next, you know, twelve to twenty four months, which is crazy, but I think they're all undervalued. [00:43:43] S1: Your thinking? [00:43:44] S0: I think Elon is is very well positioned in the geopolitical sense. I think Elon can run a more efficient business than... And not have to deal with as much administrative bloat or as much friction from from employees. How important [00:43:57] S1: is geopolitics in winning this game?
00:43:57 · Harry Stebbings, George Sivulka
[00:43:57] S1: is geopolitics in winning this game? [00:44:00] S0: I think geopolitics is is actually very important. I think that governments will be some of the largest users of AI, especially with, like, some of the the recent things that the the the new administration in The United States has been talking about with with increasing government efficiency. I think that ultimately energy is a a very big bottleneck. You know, it's a very common thing in Silicon Valley to talk about, hey. We need nuclear reactors to to flatten the duck curve so that, you know, we can, you know, we can continue to drive to, larger and larger data centers, etcetera, etcetera, etcetera. And and those are ultimately geopolitical resources. And so I think all of these things end up being very important. Then and then Elon's just operationally so talented. Right? So I think that ultimately if this becomes commoditized and whoever can really operationalize, model creation and and and serving models the fastest, I think what I think might start to [00:44:46] S1: So you think XAI and you would invest in them?
00:44:46 · Harry Stebbings, George Sivulka
[00:44:46] S1: So you think XAI and you would invest in them? [00:44:48] S0: I would, but ultimately, I think all of them are undervalued. I genuinely believe all AI companies and the S and P 500 are all undervalued, which is a very hot take. If we're about to create a $100,000,000,000,000 of value, think this is a real tangible technological shift. It's a massive unlock on the order of what computing did for the entire economy over the last sixty to eighty years. I think this will do for the next sixty to eighty years. I think all these companies are massively undervalued, including the non AI companies. [00:45:15] S1: Unpack the last bit, including the non AI companies. [00:45:18] S0: I genuinely believe that computers made legacy businesses better if you use them correctly. And so it's a massive disrupting force. But if you can ride the wave of change, AI agents in this new fundamental paradigm, that is a massive unlock for life. Do think [00:45:34] S1: there is a slight difference? Everyone talks about kind of different technological transitions. When you look at, you know, the agricultural transition or the kind of agricultural dependency on human labor and movement to machinery, computers and workforces, these were at least ten year transitionary periods. Yep. At least. This is like, hey, we use AI tools now because we just bought them today. Yep. The transition period instant. [00:45:57] S0: Yes. Much faster. Mhmm.
00:45:57 · George Sivulka, Harry Stebbings
[00:45:57] S0: Yes. Much faster. Mhmm. [00:45:58] S1: Does that not change the enterprise value accumulation and whether they're good or bad for businesses? Because it's like instantly your business will die if you don't have it or not. [00:46:07] S0: Yeah. I actually always liken technological revolutions, you know, to to what Hebbe is doing right now where, you know, people invented... Or we discovered the technology of fire, and then someone invented the torch, you know, I don't know how many years later. Know, we invented the engine, and then someone invented the car or the wheel and then the chariot. And so this idea of encapsulating and building a useful product on top of a technology change is actually the thing that takes more time. And I think that Hebiah has built... If Excel was that product for compute, I actually think Hebiah has built that product for AI. And I think that when you have a good product, that transition will be very, very, very quick. Right now, we have these chatbots or these, you know, surface level search engines that that give you facetious, you know, surface level value. Yeah. It'll help your kids cheat on their homework, but to drive to whether or not something's a good investment is a much, much more rich problem. [00:46:54] S1: Is chat the right interface for many of these applications?
00:46:54 · Harry Stebbings, George Sivulka
[00:46:54] S1: Is chat the right interface for many of these applications? [00:46:57] S0: I I ultimately do not think so. I think I think that chat was always a useful feature. It's a it's an... It's a useful interface. It's like a single cell in Excel. It's like asking if the t I 84 was the right interface for computers or the terminal was the right interface for computers. We have not even started to explore the opportunities for interfaces. I actually think that [00:47:17] S1: you think they are? [00:47:18] S0: You know, I think that Hebia is is the Bell Labs, and I conceive of ourselves as the Bell Labs of defining AI interfaces. Right? I I think that, you know, Rag was one of them. I... This idea you could find things in the data really fast. Decomposition in agents are another. This idea of scaling an inference with our matrix product is another. You can look at a lot of the other things where agents are controlling four screens at once, and you're actually looking at someone use a computer or computer use where AI models are moving cursors are others. Almost all of them have [00:47:46] S1: Ultimately, if agents are efficient, does interface not become irrelevant?
00:47:46 · Harry Stebbings, George Sivulka
[00:47:46] S1: Ultimately, if agents are efficient, does interface not become irrelevant? [00:47:50] S0: I I actually think that the better agents are, the more work that they do, the more important it will be that they are easily understood by humans. The idea would be, okay, let's say we have a bunch of of employees, 10,000 employees or 10,000 AI agents dropped at a company. They're all experts at doing something. That ends up not becoming a a problem of giving them the right tasks, but actually it becomes a management problem. Right? There's this whole infrastructure orchestration layer, the thing I always come back to, of of making these things work together. And that's actually going to be the challenge. And that's that's going to require a very human first, ultimately, a product, and that's what we're trying to build. [00:48:28] S1: Do you think Elon will be successful with Doge? [00:48:30] S0: I think it will be his greatest challenge. There's a lot of self protecting mechanisms in the largest organization in the world, which is the kind of the US government by by spend, by head... Yeah. It's just it's just this massive, unruly organization. It's not it's not gonna be as simple as Twitter. [00:48:46] S1: Are you more excited in the post Trump?