Navigating the AI Inflection Bubble: Insights from the Inside
In today’s rapidly evolving landscape, many allocators are asking, “Is this a bubble?” As a tech entrepreneur and GP at Eight Capital, my unique perspective allows me to draw parallels between past crises and the current AI wave.
Key Insights:
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Two Types of Bubbles:
- Company Behavior Bubble: Overinvestment in hyperscalers.
- Investor Behavior Bubble: Price distortions driven by speculation.
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Strategic Investment Focus:
- Invest in Application Layer: Supporting early-stage software leveraging AI infrastructure.
- Emphasize Small, Diversified Checks: Targeting pre-Demo Day opportunities.
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Phases of Technology Revolution:
- Installation vs. Deployment: We prioritize companies that can thrive even amidst chaos.
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Avoiding Speculative Traps:
- Rejecting lottery-ticket thinking and overly inflated seed rounds.
My conclusion? AI is an essential technology shift, but caution is paramount.
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