Manish Patel

HawkTower is a new venture capital firm focused on Underleveraged California. Our mission is to foster innovation and commercialization in critical rising and emerging regions of California, a state that still holds untapped potential as the world's fifth-largest economy. A thriving California, one that continues to grow, compete, and innovate on a global scale, is crucial for America's overall prosperity. Today, our website launched. We are also excited to announce additions to the team and advisory, including: Bill Sherrod, EdD, a 29-year Navy veteran and former Strategic Advisor to the President of the Naval Postgraduate School (NPS), has joined HawkTower as a Venture Partner. Bill, who initially joined us as an advisor in February, has quickly become an indispensable part of our team. His extensive experience in dual-use technology, advanced air mobility, and more brings HawkTower a wealth of knowledge and expertise. Vittoria Lecomte is a new Venture Partner. Tori is a former Forbes 30 Under 30 and an investment banker at Barclays in their Technology, Media, and Telecom Group. She was lead analyst on the Fitbit (now part of Google) and GoPro IPOs. Before joining HawkTower, she was the founder and CEO of Sesh which had a successful exit to Caraway. HawkTower is thrilled to announce our strategic partnership with Tesserakt Ventures, an early-stage venture capital firm based in Central California. This collaboration, at a time of critical opportunity for emerging California, will drive cohesion in the marketplace. Daniel Emilio Sabzehzar (Venture Partner) and Phoenix Skeahan (Operating Partner) will join HawkTower, enhancing our sourcing, diligence, and portfolio support capabilities. Lenny Mendonca, a Turlock native, is a new advisor. He served as Governor Newsom's Chief Economic and Business Advisor and is also a Senior Partner Emeritus at McKinsey & Company, where he founded the firm's U.S. state and local public sector consulting practice. Walt Duflock, head of innovation for the Western Growers , is also a new advisor. Walt is a partner at a 5th-generation family farming operation in Monterey County. In addition to 30 years of experience at Silicon Valley tech startups, Walt and his team at WGA are extraordinary thought leaders in the AgTech ecosystem. Our technical advisory capacity is significantly strengthened with the support of Alexander Wolf, Dean of the Baskin School of Engineering at University of California, Santa Cruz, Amy Fleischer, Dean, the College of Engineering California Polytechnic State University (Cal Poly), and Rakesh Goel, Dean, School of Engineering, University of California, Merced. HawkTower is confident in the entrepreneurial acumen and potential of each of these universities (as well as NPS, UC Davis, Fresno St., and others). I'm humbled to share these updates with you as we continue to grow our firm out in the open with your input.

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Friends, Q2 was a quarter of progress and learning for us at HawkTower, where we invest in early-stage startups applying breakthrough computing technologies to maximize California's natural resource markets. Our focus is on technology-enabled interventions (e.g., AI-enabled geospatial radars for lithium-ion batteries in the waste stream) for critical, market-level imperatives (e.g., disaster prevention) that can drive rapid commercial adoption (e.g., placed on every recycling truck in the world). Our current investment priorities are: - Agricultural productivity and efficiency - Biomanufacturing - Labor and mobility automation - Waste stream optimization and decarbonization - Disaster prevention and management Here’s a snapshot of what we’ve been up to: Milestones and Investments: - In late April, we officially launched our fund, filing with the SEC. Yay. - By June, we completed our first fund close ahead of schedule, with backing from family offices, foundations, high-net-worth individuals, and organizations aligned with California's future. - Our portfolio now includes three early-stage investments (Farm-ng, Agriful Software, and Nexstera Tech). Strategic Partnerships: - We believe that startups operating closer to their customers and resources, especially in agriculture and biomanufacturing, have a strategic advantage. For instance, the Salinas Valley, a major agricultural hub, is less than an hour from Silicon Valley and serves as a center of thought leadership in the convergence of agriculture and AI (from Western Growers, Taylor Farms, and others). - Similarly, the North San Joaquin Valley is emerging as a biotech and agtech innovation hub, and we are proud to support BEAM Circular, a startup hub for the circular bioeconomy. Key Relationships: - Karen Warner, CEO of BEAM Circular, joined HawkTower as a strategic advisor. - Jackie Cruz, Ed. D. Cruz, Hartnell College’s VP of Advancement, advises on Salinas Valley and workforce development. - Ben Palone from Western Growers, with his technical background in agriculture, became a trusted advisor. - Matthew Hoffman from Driscoll's Global R&D team provides insights on global agriculture, product positioning, and investment strategy. - We collaborated with Monterey Bay DART for workforce development and automation in agtech. - Dominic Milano and the Milano Technical Group from Merced collaborated on key initiatives and advised us on investments. - HawkTower is participating in Santa Cruz Works's accelerator cohort as a mentor and advisor. Thank you Doug Erickson. - We published an overview of entrepreneurship across the UC system with input from across the University of California system. Moving into the fall, we remain deeply committed to supporting founders shaping California's future natural resource markets. Stay tuned and be in touch! : ) Db

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Smart execution is the key to success in hardware startups Boom Supersonic's Blake Scholl discusses: - The importance of leveraging existing technologies - Refinement over reinvention - Prioritizing practical and user-centered design

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Batch processing for LLM inference activity: "One sign of that is the rise of batch processing. Today, popular consumer AI products like ChatGPT and Perplexity provide users with near instantaneous responses, otherwise known as real-time inference. However, businesses don't always need immediate responses and are often willing to wait hours, days, or even weeks for responses, as long as they don't have to shell out as much money. Founders of cloud and inference providers have told me there's growing pressure from business customers for this kind of flexibility, otherwise known as batch processing." -- Nathaniel Whittemore on "The AI Daily Brief" (with much deserved shout-out to his inspo from Stephanie Palazzolo at The Information) I fall into this bucket as we have a lot of backfilling to do as we're building out the underlying data in our service, and some of that could just as well be done in the wee hours of the night. The new stuff flowing in I want processed ASAFP, but these backfills—I'd mos def take more cost-efficient delayed batch processing. There's also use cases like needing (near) real-time inference for the first inference pass for timeliness / contemporaneousness value, but then a second pass slow-time inference for wider classification exercises over an ever-growing data corpus. I could see us mixing Sonnet & Haiku models in both cases. Just a heads up to Anthropic Mike Krieger as you contemplate this, along with Amazon Web Services (AWS) Jeff Barr Mark Roy Swami Sivasubramanian on the Bedrock side of things...and I don't mean the "batch" mode that doesn't seem to have any real value other than helping AWS manage its own rate limit challenges. (DeepCast is using Bedrock.)

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🚨 Breaking! 8090 Industries portfolio company Exowatt led by industrialist Hannan P. launches P3, fundamentally unleashing a new dawn for the energy industry! ☀️ Catch the story from Michelle Ma at Bloomberg below: https://lnkd.in/gkfHENST ⚡ Setting the stage: The power requirements to scale AI are astronomical. Within a decade AI will require 650TWh of new power generation – more than the electricity demand of South Korea. In the U.S. alone, data centers will require the equivalent amount of electricity to power 40 million households by 2030. Exowatt P3s can generate electricity at scale at just a $0.04 LCOE and with entirely baseload renewable tech. That’s lower than the cost of most fossil fuels and doesn’t account for subsidies. We have already amassed a 1.2 GW backlog, worth $Billions from the mega tech hyperscalers, energy and data center companies. 💡 How does it work? The system works by capturing the sun’s energy in the form of heat, storing it in a heat battery and converting it to electricity via a heat engine even when the sun is no longer out. This changes the economics of solar by solving a problem called the “Duck Curve” where all conventional solar producers are forced to sell their power at the same time while at maximum output, driving the electricity cost sometimes to zero or negative intraday and leaving no supply at night. Data centers need to operate 24/7 and typically have 60% of their OPEX from energy costs, so an inexpensive and ever available alternative is very important to them. Data centers are straining to bring capacity online and without solutions like Exowatt, are being forced to turn to fossil fuels like coal, oil and natural gas. Keep a close eye on this one, we have no doubt Hannan P. Jack Abraham and the Exowatt team will be pushing forward an exciting, abundant and carbon-free powered future!⚡️ cc Kerem Ozmen Wes Mendenhall Filip Vurdelja Haluk Sabanci Dincer Grant Brown Charles Oppenheimer Ishan Meswani Garuth A. Andrew Irwin

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Recently, Anthropic shared its perspective on California's proposed AI regulation bill, SB 1047, with the California Assembly. While recognizing the importance of safe AI development, Anthropic has raised substantial concerns about the bill's current form, which could potentially hinder innovation and harm the United States' competitive edge in AI. Anthropic's key points include shifting the focus from "pre-harm enforcement" to a more adaptable "outcome-based deterrence" model. They also advocate for regulations that focus more narrowly on frontier AI safety to avoid redundancy with federal requirements. Additionally, they suggest giving regulatory authority to the Government Operations Agency instead of creating a new state agency. Anthropic believes that these amendments will encourage innovation in risk reduction practices and incentivize companies to adopt measures that prevent catastrophic risks. In contrast, the AI Salon Policy & Civic Engagement Guild shares Anthropic's commitment to ethical AI and safe development but has broader concerns about the bills. We believe that overly burdensome regulations may discourage AI development and lead to job losses. Compliance requirements favor large companies, potentially driving smaller startups out of the market, and overregulation might cause California to fall behind other regions in AI development. Furthermore, compliance under penalty of perjury imposes significant personal risk on developers, and strict regulations could disadvantage California-based companies in the global AI market. On behalf of the over 1700+ members of the AI Salon, we urge our larger community to engage in this crucial dialogue about AI regulation. By advocating for well-balanced policies that protect public interests without stifling innovation, we can ensure California remains a leader in ethical and responsible AI development. Please sign the letters of support and join us in shaping a future where AI is developed and deployed with ethical integrity, social responsibility, and inclusive governance. Together, we can bridge the gap between AI technology and policymaking, fostering an environment where innovation thrives alongside robust safety measures. https://lnkd.in/e6MRBmcX #AIRegulation #EthicalAI #Innovation #PolicyEngagement #Anthropic #AISalon #PublicPolicy #TechPolicy Kyle Shannon Leah Fasten Brandon Tidd Stacie L. Matthew Karabinos, MAT Vikki Baptiste Jon Potter Jon Leland Cyndi Coon Daniele Hall

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This is just incredible. Neal Ghosh's demonstration of how #VentureIQ takes deeply technical and complicated content across a range of industrial use cases and ages/stages through an AI-generated conversational podcast (a la #notebookLM) is really mind-blowing. Check out his post, below, and if you haven't seen VentureIQ, yet, let's get you set up to learn more. You can visit VentureIQ.ai or DM any of us over here to book a demo!

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Really interesting podcast that brings up one of the characters that seems to not go away in #bayarea #tech culture, i.e #ayn #rand . Conceptually if you fled authoritarian regimes, some of her ideas are good, but in practice the idea that being purely selfish is good, is what is deeply wrong with tech. The real world is complex and simple philosophies like “selfish good” are appealing to simple people or exploitive people looking to exploit.

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🧩 One thing we've noticed with #VentureIQ technology is how well it can distill and communicate complex technical material 🧩 Whether it's a #deeptech venture, a novel #AI application, or even a patent submission, we can quickly distill the business and strategic implications for investors...and sometimes even the founders/PIs themselves! 🤯 Based on our work so far, the tech can handle a wide array of research areas and technological sectors -- anything from blockchain algorithms to vaccine development. It handles the nuance of the field, the specific terminology, and extracts the key concepts which matter for venture-building. 🤓 To demonstrate, I took a patent I helped write with Eric Laber on reinforcement learning. I ran it through #Ventureiq to build a commercial assessment (key differentiators, target markets). Then for fun I had #NotebookLM make a podcast out of it. I've uploaded the result it here (DM me if you'd like the actual report): https://lnkd.in/eiTejsny This is more than just automation or streamlining operations - it's about unlocking clarity and insight when it was previously unattainable, and the ability to do it over and over again no matter the sector or vertical. Interested in more info? DM me so we can chat.

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⚡ Kicking off 🌎 Earth Day with exciting news as we unveil 8090 Industries' latest investment in Exowatt led by Hannan P. along with Sam Altman Andreessen Horowitz, Atomic, Overmatch Ventures, Protagonist, and many more. As the boom in AI heightens the energy demand for data centers, Exowatt is pioneering a fundamental breakthrough in baseload renewable energy that helps makes $0.01 per kilowatt-hour, 24 hours a day a reality for commercial and industrial use cases. 🏗 How does it work? The Exowatt P3, represents a breakthrough 3-in-1 modular system, a heat collector, a heat battery, and a heat engine capable of providing dispatchable power and heat 24 hours a day. Unlike traditional solar panels that convert sunlight into electricity directly, Exowatt uses a unique approach by storing solar energy in a thermal battery, which can retain this energy for up to 24 hours per day. The Exowatt P3 modules are designed to fit the space of a standard 40-foot shipping container. They can be deployed on small and large commercial and industrial projects, linearly scaling with workload size and infrastructure requirements. Best captured by Founder and CEO Hannan P. himself, an industrialist you're going to want to pay close attention to: “You don’t have to go back to fossil fuels to solve the data-center energy problem…That’s counterproductive and unlike traditional renewable solutions that require significant upfront costs and extended setup times, Exowatt's modular system can be deployed rapidly and cost-effectively – and it's available THIS YEAR. Exowatt is built to respond quickly to the escalating energy demands of the modern world, especially those spurred by the rapid growth of AI." 👀 Who Cares? Exowatt has a backlog of demand for OVER 500 megawatts for data centers across the U.S. and plans to begin deployments later this year. With this $20 million seed funding, Exowatt intends to expand its team and deploy the Exowatt P3 with its first set of data center customers. Stay tuned! Lots to come! cc Kerem Ozmen Wes Mendenhall Filip Vurdelja Haluk Sabanci Dincer Grant Brown Ishan Meswani Garuth A. Andrew Irwin Charles Oppenheimer Fatimah Bello #energyabundance #decarbonization #climatetech

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With the progress of Waymo and the Tesla event yesterday, something I wrote about in 2021 could become true as soon as 2027. In some industries (like ride sharing), marketplaces are just an intermediary step to aggregate independent suppliers. Ultimately, companies will figure out how to provide the service themselves at scale, and we'll have a few very large "super-suppliers". But in other industries (like e-commerce) where the consumer values creativity, consolidated suppliers won't be able to provide all of the new and interesting things that customers want, and we'll still need independent suppliers. Those industries will stay in marketplace mode much longer.

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“Be quick, but don’t hurry.” John Wooden, the great UCLA basketball coach coined that phrase, and this week will offer interesting opportunities to watch pros applying it: the NBA Playoffs, yes, but also SF Climate Week. I’ve been thinking about how to apply the proper balance of patience and urgency to the climate fight. First, what does Wooden’s advice mean? Prolific basketball scorers will often talk about the need to “let the game come to you.” In other words be aggressive, move with purpose, probe for openings… but not to the point where you are hurrying into the teeth of the defense and in so doing making careless mistakes or missing the right play. The notion of patience also applies over time. Joel Embiid of the Philadelphia 76ers famously talked a few seasons ago (in a very impatient sports town) about trusting “The Process” in turning the league’s worst team into one of its enduring best. Back to climate. While hundreds of functional technologies/approaches are being deployed in thousands of ways across all industries to draw down emissions, it will take time we don’t really have — maybe a generation — to scale up these new methods enough to keep us under the warming levels above which really bad things happen. It can be depressing, and I’m certainly not alone in wanting to push harder. But it occurs to me that some of that urgency could qualify as hurrying in Coach Wooden’s sense. This (possibly contrarian?) perspective comes in part from an executive coach who once reflected that I sometimes struck him as having “both the gas and brake pushed down all the way.” He—and my team it turned out—experienced a grinding between my inner drive to quickly usher everything from decisions to workstreams through to conclusion and a desire to gather more information and make the perfect set of moves. Both “pedals” represented an exertion of control; and the solution to this inner tension was actually to practice patience by easing up with *both* feet. Point being this: amidst our ever-increasing incentives to ramp up velocity with decreasing margins for error, I wonder if being a bit more methodical each day could significantly improve the end result. In a realm as complex and fraught as climate, with so many entrenched defenses, could daily 1% improvements to our patience compound our effectiveness over time? Taking the extra breath to be more present in a conversation and learn more about another perspective. Sitting with the discomfort of ambiguity while waiting on more information. Trusting in the flow of things, the skills of colleagues, the angles that will appear and allow us to make outsized impact with more leverage than if we hadn’t allowed the game come to us. Think about it this week. As a hoops fans or climate warrior, a connector or caretaker — where and how could a little more patience help improve your part of the game? #ClimateChange #Sustainability #EarthDay #Improvement https://lnkd.in/gmyV3DYt

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The future of tech is here, and it's wearing glasses 🕶️ Here is an intriguing article about how Snap's CEO, Evan Spiegel, believes his company is leading the charge in AR smart glasses, with Meta and Apple set to follow. As someone who’s been following the AR space closely, I find it exciting to see companies like Snap pushing the boundaries of what smart glasses can do. Spiegel’s vision of using hands and voice to interact with augmented reality is a game-changer. Snap’s Spectacles, now in their 5th generation, are already making waves among developers. The goal is clear: to bring computing back into the real world, away from screens and closer to our daily lives. While Meta’s Ray-Ban Stories and Apple’s Vision Pro are also making significant strides, Snap’s approach to natural interaction and developer-friendly pricing could be the key to mainstream adoption. It’s an exciting time for AR, and I’m eager to see how these innovations shape our future. #AR #SmartGlasses #TechInnovation #FutureOfTech

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From where I sit in the SF Bay Area, cradle of innovation for at least the last 30 years, I'm a true believer in the promise of the #AI revolution. That said, I find it fascinating to consider views on the opposing side. I'm sharing below two opinion pieces from the last two weeks suggesting that the AI revolution is fundamentally overhyped and a bubble ripe for bursting, and that AI tools are actually not useful or transformative. Contrast this with venture capitalist Kai-Fu Lee's prognostication that 50% of white collar jobs will be displaced by #AI within three years, and that OpenAI and the other cutting edge movers in the space are headed to a trillion+ dollar valuation. Which side will win out? Where will we be by 2030 in the AI race? I'd love to hear your thoughts in the comments.

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Shout out to Thomas Culhane, a student at UC Berkeley that is helping to bring real-time device data into Hotter Times this summer. He has already made some fantastic improvements to the site, and I'm excited to see what else he can achieve. Our vision is to realize the UN's dream of protecting everyone with an early warning system. Hotter Times will be the public-facing site for the Climate Adaptation Data Platform, where sensor data is transformed into personalized climate risk alerts. When you install a device, the data will immediately become visible on the site and anyone can view active climate risks tied to that device. https://hottertimes.com #climatechange #climateadaptation #reducesuffering #extremeweather #climateaction #iot #datascience

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You know I always appreciate Bill Blain’s thoughts; his recent newsletter reminded me of a wonderful New Yorker cartoon, “What Lemming’s Believe.” it is a wonderful piece of art that fits well with Bill’s recent newsletter. I do not always agree with his thinking, but I always appreciate his writing and thinking - a recommended subscription. My personal sense is that Meta and Google are terrified of what OpenAI and Microsoft are doing due to the potential impact on additional revenues (though I feel Meta and Google's reactions will eventually accelerate revenue decline as everyone will ultimately be shouting, which will mean no one will listen) - their response has been a massive investment in LLM related technology, as well as a push to give the models away (in my view) to take the oxygen out of the room for any other aspiring AI startups. Consider the parallels with Zoom. Zoom charged for video, Google’s response was to offer free video for 30 minutes, Microsoft made similiar moves with teams which they bundled in office. Meta is playing the same game with its LLM models. New entrants cannot compete with free; Meta, Google, and others will simply wait and mop up everything after the money is spent; hence, spending is a tad high right now. My personal sense is that Microsoft is very well-positioned, and I’ve never sold my stock. Why? It is a well-run and ecologically diverse company. Google and Meta are not ecologically diverse from a revenue perspective. This means that they have to fight and kill to maintain their ecological/ market niche. Any change in the environment will cause their costs to consume the host. A.K.A BlackBerry versus the iPhone. The difference per unit was a $149 dollar BES license versus no BES license for the iPhone. For a bank, that’s a $500,000 difference in license renewal cost. BlackBerry’s costs killed them, not the iPhone - specifically their Management costs. This reminds me of R. H. Donnelley (RHD), Yellow Pages; more than half a million advertisers paid $3,500 a year for space in the Yellow Pages as recently as 2006, and total circulation reached 80 million copies. The RHD CEO’s presentation to investors in March 2006 was titled “Positioned for Continued Success.” Just three years later, in May 2009, R. H. Donnelley went bankrupt. That, to me, is why Meta and Google are spending money from a gushing fire hydrant - they have one revenue source - advertising. They must kill to maintain that revenue stream; they have none to replace it. To be clear, this neither good nor bad, it simply is. What Lemmings believe by Robert Mankoff. https://lnkd.in/g-XhWFZg

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In 2020, Karan Talati predicted what many of us take for granted today: we are in a revolution in hardware innovation that is revitalizing American manufacturing. Karan was part of this movement at SpaceX, where both hardware and software played key roles in making it the generational company it has become today. Having seen what software can do at SpaceX and noticing a glaring need to bring better hardware engineering and manufacturing software to the broader hardware innovation ecosystem, Karan set out to build a solution. The aerospace, defense, and other hardware manufacturing industries are rapidly shifting to a more dynamic and efficient production methodology. First Resonance exists to help them achieve their goals with better software.

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The idea of tokenizing compute power, is a striking example of misunderstanding the nature of the underlying asset—compute technology - for the most a depreciating asset. Why this is just a silly idea: Compute Power Is a Rapidly Evolving:- Compute power is not a static or reliably predictable commodity. Advances in hardware, software optimization, and energy efficiency continually redefine what constitutes “valuable” compute capacity. Tokenizing such an asset locks value to a technology that could become obsolete or inefficient, creating significant risks for token holders and compute providers. Unlike traditional commodities, compute power’s value is intrinsically tied to the pace of innovation, making it a moving target rather than a stable foundation for tokenization. Distracting from Real Solutions:- The tokenization trend risks diverting attention from meaningful innovations in compute infrastructure. Efforts should prioritize modular, renewable-powered clusters and transparent partnerships with cloud providers to address scalability, affordability, and accessibility. Token rewards add a layer of complexity without addressing the core challenges of AI compute—namely, energy consumption, accessibility, and efficiency. Sustainability Concerns:- AI compute is already under scrutiny for its environmental impact. Tokenizing compute power encourages short-term profit motives, potentially exacerbating unsustainable practices like relying on fossil fuel-heavy energy sources to maximize immediate rewards. Instead, the focus should be on developing energy-efficient, renewable-powered compute clusters with long-term societal benefits. Tokenizing compute power is not only illogical but irresponsible. It undermines the long-term potential of AI and HPC infrastructure by attaching speculative financial instruments to a rapidly evolving asset. The tech and investment communities must prioritize sustainable, scalable, and ethically governed models to ensure compute power contributes meaningfully to global progress rather than becoming yet another victim of short-sighted tokenization trends. #AICompute #ArtificialIntelligence #HPC #TechEthics #Tokenization #TokenEconomics #SustainableTech #GreenComputing #EnergyEfficiency Sandeep Dama

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Vinod's thoughts on AI: Key Takeaway 1: The impact of AI on various industries is expected to be highly deflationary. As AI automates many tasks and reduces labor costs, prices for goods and services are likely to decrease significantly across sectors like healthcare, content creation, and professional services. Key Takeaway 2: There are still opportunities for AI startups, particularly in niche applications and specialized domains. While large language models may become commoditized, there is potential for domain-specific AI solutions that integrate workflow knowledge and industry expertise. Key Takeaway 3: The cost of using AI models is expected to decrease dramatically in the near future due to competition between major players. This will likely make AI more accessible and ubiquitous, though training costs remain high. Key Takeaway 4: Apple's recent AI announcements demonstrate the company's ability to integrate technology, platforms, and products. This positions Apple well to bring small on-device AI models to consumers and developers at scale. Key Takeaway 5: The upcoming U.S. presidential election has significant implications for the tech industry and AI development. There are differing views in Silicon Valley on regulation and policy approaches, with some favoring less regulation while others are concerned about ethical issues. https://lnkd.in/gG9hSuUy

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