Packy McCormick, founder of Not Boring, joins the hosts to discuss various topics such as AI in defense tech, tech spending trends, the future of Sam Bankman-Fried, AI-powered devices like Meta's earphones, and investment trends in the venture capital landscape.
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Quick takeaways
AI technology investment is on the rise due to GPTs and LLMs, unlocking opportunities in various industries.
Cloud computing leaders like AWS prioritize open architecture, empowering users with various models.
Venture capital is diversifying towards physical world businesses and impactful innovations, balancing tech investments.
Deep dives
AI Investment Boom
Investment in AI technology is booming, driven by the increasing accessibility of large language models like GPTs and LLMs. Companies are focusing on AI to tap into the vast addressable market opportunities presented by cheaper energy and evolving technologies, foreseeing significant growth potential in various industries.
Cloud Computing Evolution
Leaders in cloud computing like AWS are prioritizing an open architecture approach, providing easy access to various models for users. While AWS isn't heavily emphasizing splashy tech announcements, they are focusing on empowering users to bring their own LLMs and are key players in the cloud computing space.
Venture Capital Shift
The state of venture capital reflects a shift towards investments in physical world businesses alongside software advancements. This diversification includes a focus on industries like space technology and biotech, indicating a move towards tangible innovations with significant real-world impact.
Tech Investment Trends
Tech investments are evolving towards a more balanced approach, incorporating AI advancements, cloud computing developments, and a surge in physical world innovations. The downturn in speculative valuations and a reset in seed investments have paved the way for more purpose-driven and growth-oriented tech ventures.
Venture Investing and Risk-Taking Mentality
Venture investors reflect on the past rush of deploying capital, acknowledging the common thread of everyone being involved in high-risk decisions during that time. The conversation delves into the necessity of embracing risk as a venture investor and the blurred line between value and momentum investing. Lessons emphasize the importance of prioritizing quality investments even in hot market phases, as demonstrated by successful investments which resulted from paying higher prices.
Market Dynamics and Global Financial Trends
Discussion shifts towards current market dynamics, highlighting a decline in down rounds and decreased investor appetite for risk influenced by external factors like Fed fund rates. Observations point to a notable reduction in seed deals, indicating a positive shift towards more sustainable and quality-focused funding decisions in the startup ecosystem. An examination of regional funding trends reveals a resurgence of cash flowing towards established hubs like the West Coast, emphasizing the role of strategic investment decisions in shaping financial landscapes.
On episode 142 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Packy McCormick, founder of Not Boring, to discuss: the AI space, tech spending, the venture capital landscape, defense tech, what's next for Sam Bankman-Fried, and much more!
This episode is sponsored by Public. Visit https://public.com/ to learn more!
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