Michael Eisenberg: How China Could Overtake the US in the AI Race | E1167

ℹ️ EPISODE INFO

Released

June 19, 2024

Duration

1h 2m

Channel

The Twenty Minute VC

Watch on YouTube

▶ Open ↗

📝 EPISODE DESCRIPTION

Michael Eisenberg is a Co-Founder and General Partner @ Aleph, one of Israel’s leading venture firms with a portfolio including the likes of Wix, Lemonade, Empathy, Honeybook and more. Before leading Aleph, Michael was a General Partner @ Benchmark. ----------------------------------------------- Timestamps: (00:00) Intro (00:56) Tech Revolution or Market Mania? (06:31) AI Showdown Between Tech Titans & Innovators (12:49) Investing in Competitive Markets (17:39) Horizontal SaaS vs. Vertical (21:52) Adoption Cycles & Technological Growth (24:22) The Role of AI in National Defense (27:19) The Ethical Dilemma of Defense Investment (34:41) Concerns Over Liquidity: IPOs, M&A, and IP (41:03) Selling Positions: All or Incremental? (49:57) From Hyperscalers to Sustainable Growth (56:32) Quick-Fire Round ----------------------------------------------- In Today’s Show with Michael Eisenberg We Discuss:

1. The State of AI Investing: Why does Michael believe that “foundation models are the fastest depreciating asset in history”? Are we in an AI bubble today? As an investor, what is the right way to approach this market? Who will be the biggest losers in this AI investing phase? Where will the biggest value accrual be? What lessons does Michael have from the dot com for this?

1. Where Is the Liquidity Coming From? Why does Michael believe that it is BS that private equity will come in and buy a load of software companies and be the primary exit destination? Why does Michael believe that IPO windows are always open? Should founders go out now? What is good enough revenue numbers to go out into the public markets? Why does Michael believe that Lina Kahn is a threat to capitalism? How does Michael predict the next 12-24 months for the M&A market?

1. AI as a Weapon: Who Wins: China or the US: Does Michael agree with the notion that China is 2 years behind the US in AI development? Does Michael agree that AI could be a more dangerous weapon in wars than nuclear weapons? Why does Michael suggest that for all founders in Europe, they should leave? US, China, Israel, Europe, how do they rank for innovating around data regulation for AI?

1. Venture 101: Reserves, Selling Positions and Fund Dying: Why does Michael only want to do reserves into his middle-performing companies? What framework does Michael use to determine whether he should sell a position? Which funds will be the first to die in this next wave of venture? Why does Michael not do sourcing anymore? Where is he weakest in venture? Why does Michael believe that no board meeting needs to be over 45 mins? ----------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Michael Eisenberg on Twitter: https://twitter.com/mikeeisenberg Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #20vc #harrystebbings #michaeleisenberg #aleph #venturecapital #ai #ipo #china #uselection #israel #saas

🎤 SPEAKERS

• Michael Eisenberg

  guest

• Harry Stebbings

  host

🧾 EPISODE SUMMARY

In this episode of The Twenty Minute VC, featuring Michael Eisenberg and Harry Stebbings, Michael Eisenberg: How China Could Overtake the US in the AI Race | E1167 explores AI Bubbles, Regulation, and Why Most VCs Won’t Get Liquidity Michael Eisenberg argues that AI—especially LLMs—is the most transformational technology of his lifetime, yet today’s frenzy is a classic bubble where most investors will lose money while a few foundational winners and critical infrastructure are created.

🔗 RELATED EPISODES

Andrew Bialecki: Is Klaviyo the Most Under-Priced Public Company? | E1170

David Luan: Why Nvidia Will Enter the Model Space & Models Will Enter the Chip Space | E1169

Val Scholz: How Revolut Acquired Their First 10M Users: Tips, Tactics & Strategies | E1168

Danny Rimer: The Biggest Lessons from Missing Snap, Airbnb, Spotify and Facebook | E1166

Janie Lee: Three Core Skills that Make the Best PMs | E1165

Alex Wang: Why Data Not Compute is the Bottleneck to Foundation Model Performance | E1164