Trends with Friends: Episode Summary
Episode Title: Too Big To Fail? Too Small To Care? The New AI Landscape | Ft. Josh Mohrer
Release Date: January 15, 2025
Hosts: Howard Lindzon, JC Parets, Phil Pearlman
Guest: Josh Mohrer
Introduction
In this engaging episode of Trends with Friends, host Howard Lindzon is joined by regular co-hosts Phil Pearlman and JC Parets, along with special guest Josh Mohrer. The conversation navigates through a blend of light-hearted banter and deep dives into the evolving landscape of artificial intelligence (AI), startup funding, and the intersection of technology with politics.
Lighthearted Beginnings: The Creatine Banter ([00:02] - [03:09])
The episode kicks off with a humorous exchange about creatine supplementation among the hosts and Josh Mohrer. The playful discussion serves as an icebreaker, setting a relaxed tone before transitioning into more substantial topics.
Notable Quote:
Howard: "This situation where both 'too big to fail' and 'too small to fail' can be true at the same time." ([30:26])
Josh Mohrer's Journey and Uber Experience ([03:09] - [07:06])
Josh Mohrer shares his extensive background in early fintech ventures, notably his pivotal role at Uber. He recounts his tenure as the General Manager for Uber in New York, highlighting the rapid growth from zero to $3 billion in annual bookings over five and a half years. Josh also touches upon the challenges of scaling operations and navigating regulatory landscapes.
Notable Quote:
Josh Mohrer: "They were looking for a GM for New York. It was like, run your own business here, basically." ([05:14])
The New AI Landscape and Wave App ([07:08] - [22:49])
The discussion shifts to the burgeoning field of AI, with a focus on Josh's latest venture, Wave, a note-taking application augmented by AI. Josh elaborates on how AI tools like ChatGPT have democratized the ability to build and manage startups without extensive engineering backgrounds. He details the development process of Wave, emphasizing the iterative problem-solving approach and direct user engagement without relying on a large team.
Notable Quotes:
Josh Mohrer: "It's not learning how to code, it's learning how to implement, it's learning how to use the different services." ([17:01])
Michael Perek: "Sam Altman at OpenAI has consistently said over the last year that AI is going to basically lead to a world of many businesses that will be 1, 2, 3 people and worth billions of dollars." ([16:05])
Funding Dynamics: Venture Capital and Private Equity ([22:49] - [44:44])
Phil Pearlman introduces a critical analysis of the current funding environment, referring to the "Nifty Nine" — the nine largest tech giants whose massive investments in AI are reshaping the market. The hosts discuss how these companies are investing between 60% to 160% of their free cash flow into AI, leveraging political ties to scale their operations globally.
Josh emphasizes his preference for organic growth without diluting ownership through venture capital (VC) funding. He likens his business model to running a digital store, sourcing AI capabilities directly from providers like OpenAI and focusing on sustainable, lean operations.
Notable Quotes:
Phil Pearlman: "AI can benefit both the very large and the very small." ([12:40])
Josh Mohrer: "I just want to do what I'm doing. ... Modify cap tables, do different games, is problematic." ([23:53])
TikTok's Legislative Battle and AI's Consumer Impact ([44:44] - [35:26])
Michael Perek delves into the ongoing legislative challenges facing TikTok, set against the backdrop of broader AI advancements. He outlines the deadline for TikTok to spin off its US operations and the potential involvement of high-profile investors like Elon Musk and political figures such as Trump.
The conversation underscores TikTok as a prime example of AI-driven consumer applications, highlighting its algorithmically curated "For You Page" and its influence on competitors like YouTube Shorts and Instagram Reels. The hosts predict that TikTok will likely remain operational despite political pressures, given its massive user base and economic significance.
Notable Quotes:
Michael Perek: "AI is being fundamentally used to leverage our data to figure out what we want." ([30:57])
Phil Pearlman: "This is the greatest time to invest and it's the greatest time to build." ([30:26])
The Intersection of AI, Politics, and Capital ([35:26] - [55:55])
Howard and Phil explore the intricate relationship between AI advancements, political maneuvers, and capital flow. They discuss how AI is not just a technological trend but also a political tool, especially with impending changes in the US administration. The conversation emphasizes the transformative power of AI in creating both large-scale infrastructure and empowering small, agile startups.
Phil urges listeners to dismiss the prevalent negativity surrounding AI and politics, advocating instead for capitalizing on the present opportunities to innovate and invest. The hosts reflect on the evolving nature of venture capital, the rise of private equity, and the strategic importance of aligning with influential financial institutions like Goldman Sachs.
Notable Quotes:
Howard Lindzon: "Two things can be true: too big to fail and too small to fail at the same time." ([30:26])
Phil Pearlman: "If you're small, if you're large, if you have a lot of money, if you don't have a lot of money, ... this is the greatest time ever." ([30:26])
Closing Remarks and Future Directions ([55:42] - [55:55])
As the episode wraps up, Josh Mohrer discusses his future plans for Wave, including expanding its capabilities to support Zoom meetings and phone calls, and enhancing its AI to provide comprehensive summaries across multiple meetings. The hosts emphasize the importance of marketing in the current tech landscape and encourage listeners to focus on building and investing in innovative AI-driven solutions.
Notable Quotes:
Josh Mohrer: "I could use someone a little more clever [in marketing]. It's the most important job in the world." ([53:07])
Phil Pearlman: "AI is now moving into the background, just like when you pick up an iPhone." ([53:01])
Conclusion
This episode of Trends with Friends provides a comprehensive exploration of the current AI landscape, the strategic maneuvering of tech giants, and the opportunities available for small startups like Josh Mohrer's Wave. The discussion underscores the symbiotic relationship between technology, politics, and capital, illustrating how AI is not only transforming industries but also reshaping the dynamics of power and investment. Listeners are left with actionable insights on leveraging AI for innovation and growth amidst a rapidly evolving market.
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