The AI transformation of our world has already begun, and Silicon Valley has positioned itself to be home base. But how did the AI takeover happen so rapidly there? Who were the founders and investors who opened the floodgates?

Investigative journalist Gary Rivlin has more than two decades of experience writing about the tech industry. In his new book, AI Valley: Microsoft, Google, and the Trillion-Dollar Race to Cash In on Artificial Intelligence, he gives readers an up-close look at the players behind AI’s dramatic rise to dominance in the tech world.

Gary and Greg discuss some of the key moments in AI’s recent history, the role of venture capital in tech, how Silicon Valley's unique ecosystem lends itself to AI innovation, and what the future could hold for artificial intelligence.

*unSILOed Podcast is produced by University FM.*

Episode Quotes:

Why startups find themselves working for big companies like Google and Microsoft

[04:19] I started this book thinking I'm just going to follow the startups, right? What company's going to be the next Google, the next Facebook? And by this time I was finished, I realized that the next Google was probably going to be Google. The next Facebook was going to be…Meta, this stuff is so expensive. So, the start of 2023, you needed tens of millions of dollars, maybe hundreds of millions of dollars to train, fine tune, and run these models. By the end of 2024, you needed billions, if not tens of billions. And how does a startup raise that kind of money? There are a couple that have, I mean, openAI just raised another $40 billion. Anthropic, I think, has raised about $20 billion, but they still have to raise more money because they're not profitable yet. And they're looking at several years without profit. I worry that these really innovative startups doing incredible things are going to have to be gobbled up just to survive.

Can an army of AI help you build a billion-dollar company?

[13:18] Something to understand I think that people don't get about AI is, it's not like it's going to do it for you. It's your copilot. It's your assistant. It's a really powerful tool that you could use just like a computer or a calculator or a camera is a tool. It doesn't give you much unless you give it a lot. So the way I find it to be effective is I'm almost stream of consciousness. Here's what I wanna do, here's what I'm thinking about. Here's my idea, here's how I want to frame it. And that's when I get a good answer,you know. Write a book about AI would be awful. But if I start giving it, quotations and describe characters and all that, it'll be something much richer. So getting back to the example, you still need a marketing person or two, you still need salespeople. I don't think people are gonna be persuaded by some bot saying, Hey, will you buy our product? Here sign up, a million dollar contract for three years. There still needs to be humans in the loop.

AI has been part of people’s lives for a long time.

[18:04] AI has been part of our world. It was different in 2022, the end of 2022 when Open AI released chatGPT. It was a product that you can talk with and like you could feel the AI. And so suddenly it was much more real. It wasn't behind the glass. It was something that you could converse with.

Dual edge of AI

[26:35] A powerful tool for good is also a powerful tool for bad. And, you know, many people have lots of concerns. I'm not a doomer, but the use of AI weaponry using AI for surveillance, these things reflect the biases we have. So using AI to predict, [or] determine someone's sentence, whether or not we interview them for a job, that scares me.

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