Molly O’Shea is joined by Alex Kolicich, Founding Partner of 8VC. Before his venture capital career, Alex was an engineer and early product advisor at companies like Clarium, Palantir, and Google.

In this discussion, Alex talks about the current investment landscape citing the "AI capabilities gap," the potential for a "trough of AI disillusionment," and highlights the tension between AI's promise and its current limitations.

Why is Silicon Valley suddenly embracing the Pentagon? Alex explains how defense has transformed from a controversial investment to a sought-after opportunity, citing successes like Anduril, Palantir, and SpaceX, and details 8VC’s approach to investing in defense startups, including their "build program" and shares resources for government engagement.

Alex and 8VC were early investors in defense technology companies when it was not a popular area for venture capital. Some of their investments include Anduril, Saronic, Epirus, and Chaos Industries. 8VC has a "build program" where they incubate and co-found defense technology companies, providing resources like capital, government relations expertise, and shared infrastructure.

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https://www.8vc.com/

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Sponsor: Archer

Archer's Midnight is a piloted four passenger aircraft designed to perform rapid back-to-back flights with minimal charge time between flights. Learn more about how Archer is set to open up a new world of opportunity for passengers by providing safe and efficient access to people, places, and events across the communities they live, visit https://www.archer.com/

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Companies mentioned:

OpenAI: https://openai.com/

Microsoft: https://www.microsoft.com/

Anthropic: https://www.anthropic.com/

Google: https://www.google.com/

Nvidia: https://www.nvidia.com/

Amazon (AWS): https://aws.amazon.com/

Palantir: https://www.palantir.com/

SpaceX: https://www.spacex.com/

Anduril: https://www.anduril.com/

Inflection AI: https://inflection.ai/

Adept AI: https://www.adept.ai/

Raytheon: https://www.rtx.com/

Epirus: https://www.epirusinc.com/

Saronic: https://www.saronic.com/

Case Text: https://casetext.com/

Sequoia Capital: https://www.sequoiacap.com/

Kleiner Perkins: https://www.kleinerperkins.com/

Character AI: https://beta.character.ai/

CRV (Charles River Ventures): https://www.crv.com/

Founder's Fund: https://foundersfund.com/

xAI: https://x.ai/

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TIMESTAMPS:

(00:00) Preview and Intro

(01:01) AI Optimism & Uncertainty

(06:51) Public & Private Market Dynamics

(12:34) Sustainable Multiples & Oversupply of Capital

(13:49) Sponsor: Archer

(14:33) Risk & Returns of Mega Checks

(22:35) Opportunities Within the Gap

(27:18) The Exit Environment & Acquihires

(31:14) The Defense Wave

(40:26) Resources for Defense Startups

(46:42) Startup Advice for Defense

(46:51) Technical Excellence, Government Relations & Fundraising

(49:23) Surprises & Changes in H1 2024

(49:55) Shifting Views on Application Layer & OpenAI

(52:44) Wrap

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