https://www.youtube.com/watch?v=a9OQSn2iwRk

Summary

What has happened in AI in the last year? Just 12 months ago, generative AI models like DALL-E were first being shown. In November 2021, ChatGPT was released, leading to an explosion in generative AI. Now over 1 billion people have used it. Conceptually, we’ve passed the Turing test - we need new benchmarks.

Why does this work now? The key factors are:

• The algorithms, especially transformer models developed in 2017, as well as GPU computing power and abundance of data to train them. This is the technology layer.
• We're asking AIs to do creative, non-binary tasks that human brains are good at, like generating content. This is the use case layer.

Is this hype or a new platform? Strong historical precedents suggest this is a major new platform:

• The internet made the marginal cost of distribution zero.
• The cloud made the marginal cost of storage zero.
• Generative AI will make the marginal cost of content creation zero.

Value capture is still unclear. Infrastructure providers like Nvidia will benefit. But for models and applications there is maximum entropy. Some predictions:

• We'll get personal AI companions and external "digital twins".
• AI will create content beyond human capabilities - like Nobel Prize winning science.
• Education will be transformed by AI tutors.
• AI will move into generating 3D content, greatly expanding robotics automation.

The next 1-5 years will see huge changes from generative AI across many fields.

Images

Ludwig Ensthaler

https://www.linkedin.com/in/ludwig-ensthaler-1b460143/

Ludwig Ensthaler is a co-founder and general partner at 468 Capital, a venture capital firm that invests in category-defining businesses. He is also the chief investment officer at 468 SPAC I and has been at the helm of five different companies, including Rocket Internet SE. Ensthaler has a background in business and investment, and he has been instrumental in raising funds for 468 Capital. In 2022, the firm raised $400 million for its second fund, which is led by Ensthaler and two other managing partners. Ensthaler has a history of building, operating, and investing in successful businesses.