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episode 33 discuss CBN Sites Venture Trends 2024 report
highlighting
the overwhelming dominance of artificial intelligence
AI across the tech landscape
hey everyone
thanks for joining us for another deep dive
you wanna know where tech is going as we headed to 2025
and well you gave us a
pretty big stack of articles to go through
yeah a lot to get through
a lot to get through but you know what
one thing is super clear AI
it's everywhere it really is
it's not just a trend anymore
it feels like AI is completely changing the game
totally and you know
it's really interesting all this money
big tech is pouring into AI
like Amazon Microsoft
Google Meta
they're all on a huge AI spending spree
yeah the CBN sites report we have here
it really shows that like they're going all in
so is this just like a fear of missing out thing
or is there something bigger happening here
I think it's way more strategic than that
you know these companies are data companies right
like that's their bread and butter
yeah their whole foundation
exactly
an AI is all about using data in new and powerful ways
so for them it's not just a fad
it's a core part of their strategy for the future
okay so they're not just throwing money at the problem
they're placing some pretty serious bets on where AI
is going and
the report actually shows that
their spending has gone from like
$20 billion a quarter in 2020
to over 60 billion in 2024
that's massive it's huge
so where is all that money going
what are they actually spending it on
well a lot of it is going into infrastructure
yeah the nuts and bolts of AI development
things like GPUs data centers
the golden blocks exactly
and then there's talent they're hiring like crazy
trying to snag all the best AI
researchers and engineers
and let's not forget acquisitions right
I mean they're buying up these promising AI
startups left and right yeah
they're scooping them up yeah
so you've got this perfect storm of building
buying and hiring all at the same time
and it's all happening so fast
yeah so
what does this tell us about the future that they see
like is it all sunshine and roses with AI
or are there some potential
downsides to all this investment
well I think it definitely shows
they believe AI is going to be everywhere
like woven into every part of our lives
like we can't escape it right
but it does raise questions too
you know
about potential monopolies
and too much power in the hands of just a few companies
that's definitely something to keep an eye on for sure
and speaking of things changing
remember when fintech was like the hot new thing
everyone was talking about
disrupting the financial world
yeah fintech was the golden child
but then things shifted hmm
and the data we have here
paints a very different picture now
yeah if you look at the numbers
like those median MNA exit prices
Fintec is way down there
like at the bottom of barrel compared to AI
and cybersecurity acquisitions are happening
but at much lower valuations
so what does that tell us
it tells us that investors
aren't as confident about fintech's future
as they used to be yeah
the numbers really show that fintech is lagging behind
with just $1.1 million per employee
compared to AI
at 1.9 million or cybersecurity at 2.3 million
it's a big difference so the question is
what's causing this shift
is it just a natural correction
or is AI actually playing a role in fintexticline
it's probably a bit of both honestly
I think
the initial excitement around fintech has cooled down
and maybe the market is getting a bit crowded
but AI is definitely shaking things up
it's changing how financial services work
and some fintech
companies are having trouble keeping up
so it's not enough to just be tech anymore
you gotta be AI
powered tech if you wanna get investors excited
which brings us to another interesting trend
the rise of the AI unicorn
ah yes
the unicorns these AI
startups are suddenly snagging a huge
chunk of those billion dollar valuations
it's pretty remarkable if you look back to 2015
only about 6% of new unicorns were AI driven
and now now it's a whopping 44%
that's a huge jump
so investors are clearly seeing something special in AI
startups
they're putting their money where their mouth is
so AI
is changing the game for big companies and startups
but it's not just a tech world phenomenon right
we're seeing it impact all kinds of industries
like healthcare absolutely
one of the biggest examples is
the pharmaceutical industry
big players like Johnson and Johnson Rich Pfizer
they're all teaming up with AI specialist
and what are they doing
they're trying to revolutionize drug discovery
and development it's pretty amazing
that's huge
we're talking about potentially life saving innovations
so how exactly is AI being used in drug discovery
and what does this mean for the future of healthcare
well AI is really good at analyzing huge datasets right
like mountains of data
way more than a human could ever handle
exactly so they're using AI
to sift through all this genetic information
clinical trial results scientific literature
you name it looking for patterns
exactly AI
can find patterns and make predictions
that would be impossible for humans to do on their own
and that could lead to faster development of new drugs
and treatments maybe even cures
for diseases that have been around for centuries
it's mind blowing
when you think about the possibilities
but with all this investment in AI
you have to wonder is there enough money to go around
are investors just throwing money at anything with AI
in the name well
let's look at venture capital
AI is getting a huge chunk of the funding Pi right now
how huge
it's gone from just 5% of venture funding in 2015
to a massive 37% today
that's more than any other sector
wow so it's not just big tech
it's the whole venture capital world
that's betting big on AI
what are some of the biggest investments
we've seen lately well
some of the biggest funding rounds of 2024 went to AI
companies later Brooks raised a whopping $10 billion
open AI got 6.6 billion
and anthropic wasn't far behind with 4 billion
that's a lot of money it is
even in the world of venture capital
those are some serious numbers
it makes you wonder are we heading for an AI bubble
or is
all this investment
actually justified by the potential of the technology
that's the million dollar question right
there is always a risk of getting carried away
with any new technology
the height machine can get out of control
exactly but I think AI is different
it's not just a product or service
it's more like a fundamental platform
that can be applied to so many different industries
and problems so
it's not just about building the next cool
app or gadget
it's about creating tools that can change how we work
live and interact with the world
exactly and that's a powerful idea
and speaking of changing things
let's talk about ipos
the path to going public has changed quite a bit
in the last few years it definitely has
the average time
from a company's first funding round to their IPO
has gotten a lot longer how much longer
it's gone from an average of five years in 2015
to 7.5 years today
so startups are waiting longer to go public
they are they're choosing to stay private longer
and focus on building a really solid foundation
before they jump into the public markets
it seems like those days of superfast growth
and quick exits are kind of fading away
yeah investors are looking for more than just hypeno
they wanna see sustainable businesses
with long term potential
so it's a sign of a more mature tech industry
I think so
investors are less interested in short term gains
and more focused on the long game
but there's another interesting battle happen in the AI
world right now oh yeah
what's that it's not just about AI existing
it's about how it's developed and who has access to it
we're seeing this growing tension between
open and closed AI
okay so
what do we mean by open and closed
when we're talking about AI
and why is this distinction so important
well open AI
is all about making the technology
and its underlying code accessible to everyone
it's kind of like open source software
where developers can collaborate
share ideas build upon each other's work
kind of like a community effort
exactly and champions of open AI like Meta Invidia
hugging face
they believe this approach will lead to more innovation
and give more people access to these powerful tools
so it's about democratizing AI
making it available to everyone
not just a select few that's the idea
but then on the other side
you have closed AI and what's that all about
closed AI is typically developed by big corporations
with lots of resources companies like open AI Microsoft
Google big players exactly
they invest heavily in research and development
and they often make really groundbreaking advancements
but they keep their code and algorithms proprietary
so they control access right
and they often monetize their innovations
so it's a trade off them
between accessibility and control
yeah open AI is all about collaboration in transparency
while closed AI offers potentially faster advancements
but with less transparency
and maybe some limits on who can use it
and the data shows that these closed source AI
companies have raised a ton of money
like 37 and a half billion dollars since 2020
that's right
and this tension between open and closed AI
is really at the heart of a much bigger debate
about the future of technology
who's gonna control
the most powerful tools of the 21st century
will it be a handful of corporations
or a global community of developers and researchers
it's a question with huge implications
not just for the tech industry
but for all of us
how will this battle between opening
closed AI affect our lives
how will it shape the way we work
communicate and interact with the world around us
yeah it really makes you think about
the future we're creating
and what it means for all of us
like if AI is gonna be everywhere
what skills do we need
what knowledge is gonna be valuable
in a world that's run by AI
that is the big question isn't it
and it's not just about those technical skills
you know like coding or data science right
those are important yeah
those are important but there's a whole set of human
skills that are gonna be even more important
in this age of AI so
you're saying
we're not all gonna be replaced by robots
there's still hope for us humans
oh absolutely
there's definitely still hope for us humans
think about the things that AI still struggles with
creativity critical thinking
really complex problem solving
emotional intelligence
those are the things that set us apart as humans
exactly those are the skills that are going to
allow us to thrive in an AI
powered world so it's not just about learning to code
it's about learning to think critically
to be adaptable to be able to solve problems
and to connect with other people
it's about being more human
not less and
there's one more
really crucial skill that we can't forget about
the ability to keep learning and adapting
because things are changing so fast
exactly the pace of change is only gonna get faster
so we need to become lifelong learners
always updating our skills and knowledge
it's like we're all back in school again
but this time the curriculum is always changing
it's like a never ending pop quiz
exactly so where do we even begin
how do we prepare ourselves
and future generations for this world
yeah where do we start
while it starts with education
we need to make sure that students
are getting those foundational skills
that they'll need to navigate this world
critical thinking problem solving
creativity adaptability
those 21st century skills everyone keeps talking about
exactly and it's not just about formal education either
we need to create a culture of lifelong learning
where people are encouraged to explore new ideas
experiment with new technologies
and constantly push themselves to learn new thing
and be curious to stay adaptable
exactly and we need to be aware of the potential risks
and challenges that come with any powerful technology
which brings us back to that question
we're talking about earlier
is this rapid development of AI
something to be excited about or scared of
is it gonna lead to a Utopia or a dystopia
it's not a simple answer it's not one or the other
AI has the potential to solve some of our biggest
problems you know
like curing diseases or addressing climate change
really big challenges exactly
but they're definitely real risks too
especially if AI isn't developed in use responsibly
so it's not about being pro AI or anti AI right
it's about making sure that AI is used for good
for the benefit of everyone
it's about being pro humanity
and making sure that AI
is used to make the world a better place for all of us
and that's why it's so important to have these
conversations about the ethics of AI
the potential risks and benefits
and the kind of future we wanna create
exactly this Deep Dock is just a starting point
a glimpse into this really complex
and constantly changing world of AI
but hopefully
it's giving our listeners a foundation to build on
a way to think about the opportunities
and the challenges that are coming our way
I think so and remember
this is just based on what you asked us to look at
we encourage you to keep digging
keep asking questions and keep learning
there's always more to discover yeah
it's a lot to think about yeah
it really is but ultimately it comes down to us right
like we get to decide how we wanna use this technology
absolutely we have the power to shape the future of AI
and that's both exciting and a little bit daunting
definitely so as we wrap up this deep dive
what's the one thing you really
want our listeners to take away from all of this
I think the most important takeaway is that AI
is not just a trend it's a fundamental shift
that's going to reshape the world as we know it
and understanding AI is gonna be essential
for anyone who wants to navigate the future
successfully
it's like AI literacy is the new essential skill right
like everyone needs to have at least
a basic understanding of how this technology works
and what it means for them
exactly
and that's why conversations like this are so important
we need to keep talking about AI
keep exploring its potential
and keep asking tough questions about
its impact on society
because the future of AI is ultimately up to us
it is we have the power to decide
how we wanna use this technology
to shape the world we wanna live in
well said it's been an incredible journey
exploring all of this with you
and to our listener thank you so much for joining us
on this deep dive into the world of AI
we hope you found it insightful on thought provoking
we did too and remember
this is just the beginning
keep learning keep exploring
and keep pushing
the boundaries of what's possible with AI
until next time
stay curious and keep those questions coming