The Future of AI Investing: A Conversation with Elad Gil and Sarah Guo
Last week, StrictlyVC hosted its first evening event of the year in San Francisco, featuring prominent AI investors Elad Gil and Sarah Guo. The two discussed their approaches to investing in a world where deals are getting bid up feverishly, and some startup teams are looking to sell due to the costs involved with building their software.
The State of AI Investing
Gil, who has reportedly raised over $2 billion from investors in the last couple of years, emphasized the importance of clear guidelines when working with one’s own investors to avoid perceived conflicts of interest. "If you have that clarity of how you’re going to act, it makes a huge difference," he said. "It gets rid of ambiguity, it gets rid of uncertainty, and it gets rid of bad feelings."
Guo, on the other hand, is taking a more traditional approach with her year-old firm, Conviction. With a relatively small fund size compared to Gil’s billions under management, Guo has already brought aboard two other investors, a talent partner, and an operations person. She also stated that she has enough skin in the game that she doesn’t take lightly any decisions in the "relatively concentrated portfolio" her team is building.
Deal-Making Strategies
Gil discussed some of his notable deals, including his investment in Anduril, a defense tech company whose cofounder Trae Stephens will be speaking at StrictlyVC’s next event in Los Angeles on February 29. Guo also shared insights into her own deal-making strategies, highlighting the importance of due diligence and thorough research before making any investment.
Protecting Against Abuses
Both Gil and Guo expressed concerns about the potential for AI tech to be abused. They discussed ways to mitigate these risks, including clear guidelines on responsible use and robust security measures. "We need to make sure that we’re not creating tools that can be used in nefarious ways," said Gil.
Foundation Models: The Future of AI?
The conversation also touched on foundation models like GPT-4, which have sparked debate about the potential risks and benefits of such technology. Guo emphasized the importance of ongoing research and development to ensure that these models are used responsibly.
French Values
In a lighter moment, Gil mentioned his concern with "French values," which sparked some chuckles from the audience. However, he quickly clarified that this was not a reference to any specific issue but rather a nod to the cultural significance of French cuisine and wine.
Conclusion
The evening event provided valuable insights into the world of AI investing, highlighting both the opportunities and challenges facing investors in this space. As the field continues to evolve, it will be interesting to see how Gil and Guo’s approaches shape the future of AI investment.
Elad Gil: A Closer Look
As one of the most prominent AI investors, Elad Gil has raised over $2 billion from investors in the last couple of years. His investments are characterized by a focus on long-term growth rather than short-term gains.
Gil’s approach to investing is centered around creating clear guidelines with his own investors to avoid perceived conflicts of interest. He emphasized the importance of having a clear understanding of how one will act, which can help eliminate ambiguity and uncertainty.
Gil’s Notable Deals
- Anduril: A defense tech company whose cofounder Trae Stephens will be speaking at StrictlyVC’s next event in Los Angeles on February 29.
- Other notable deals include investments in various AI-related startups, focusing on long-term growth rather than short-term gains.
Sarah Guo: Building a Different Approach
With her year-old firm, Conviction, Sarah Guo is taking a more traditional approach to investing. Her team has brought aboard two other investors, a talent partner, and an operations person, highlighting the importance of due diligence and thorough research before making any investment.
Guo’s focus on responsible use and robust security measures underscores her commitment to mitigating risks associated with AI tech. She emphasized ongoing research and development to ensure that these models are used responsibly.
Guo’s Investment Strategy
- Relatively concentrated portfolio: Guo has already brought aboard two other investors, a talent partner, and an operations person.
- Due diligence and thorough research: Her team conducts extensive research before making any investment.
- Responsible use and robust security measures: Guo is committed to mitigating risks associated with AI tech.
The Future of AI Investing
As the field continues to evolve, it will be interesting to see how Gil and Guo’s approaches shape the future of AI investment. The conversation highlighted both the opportunities and challenges facing investors in this space.
Key Takeaways
- Clear guidelines are essential when working with one’s own investors.
- Due diligence and thorough research are crucial before making any investment.
- Responsible use and robust security measures can help mitigate risks associated with AI tech.
Conclusion
The evening event provided valuable insights into the world of AI investing. As we move forward, it will be exciting to see how Gil’s long-term growth approach and Guo’s focus on responsible use shape the future of this field.
What’s Next?
- Upcoming events: StrictlyVC will continue to host events exploring various aspects of AI investment.
- Future developments: Keep an eye out for new technologies, strategies, and innovations in AI investing.