The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Sequoia's David Cahn on The Winners and Losers in AI | The $0-$100M Revenue Club: Is Triple, Triple, Double, Double Dead? | The Future of Defence: Who Wins and Who Loses | How to Analyse Margins and Growth Rates in a World of AI
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Oct 27, 2025 
David Cahn, Partner at Sequoia Capital and renowned AI investor, dives into the fascinating world of artificial intelligence and defense. He explores the existence of an AI bubble and the critical importance of physical infrastructure like data centers for economic impact. Cahn discusses the risks of circular deals and overcapitalization in the AI landscape, plus the implications of AI on GDP growth. He also emphasizes the necessity of hiring young AI talent and outlines the potential for significant gains in defense technology, spotlighting companies like Kela and Stark.
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Physicality Turns AI Into GDP
- The physicality of AI (data centers, power, steel) drives GDP impact and competitive advantage.
- Data center construction and power constraints are translating AI into tangible economic growth.
Compute Spend Implies Large Revenue Need
- The $600B (now ~$840B) revenue question ties compute investments to required gross margins and end-user demand.
- Building data centers is shovel-ready now, but end-user monetisation still must prove out.
Surprised By Massive Talent Pay Packages
- David was surprised by outsized talent pay packages that materialized for young AI experts.
- He did not foresee 25-year-olds commanding $50–100M or brand names getting billion-dollar packages.
