Sarah Wang is a partner at a16z. She and Martin Casado discuss the scale of compensation packages offered to AI researchers and engineers.
Opinion
Wang: Robotics funding prematurely assumes a 'ChatGPT moment' has happened
“It would probably be on the hardware side, actually, right, and the robotics sector, right, which is, it's, I don't want to say that it's not getting funding, because it's clearly it's sort of non-consensus to almost not invest in robotics at this point, but w…”
Insight
Wang: AI playbook is raising capital for compute, launching apps, repeating
“You raise money for compute. You pour that, or you pour the money into compute. You get some sort of breakthrough. You funnel the breakthrough into your vertically integrated application. That could be chat GPT. That could be cloud code, you know, whatever it …”
Insight
Wang: AI startups face a dilemma balancing AGI research with product revenue
“I think the best researchers in the world have this dilemma of, okay, I want to go all in on AGI, but it's the product usage revenue flywheel that keeps the revenue in the house to power all the GPUs to get to AGI. And so it does make you know, I think it sets…”
Assertion Not checkable as stated
Wang: Compute accounts for roughly 80% of foundation model fundraises
“They have compute needs, right? That's 80% of a round that they typically raise, or typically of a round that they raise.”
Assertion Not checkable as stated
Wang: Unnamed AI company hit tens of millions in revenue within weeks
“There's a company, I can't share the name but their product went GA in a few weeks, tens of millions of revenue, right?”
Assertion Supported
Wang: AI startups negotiate 9-figure compute deals six months in
“We talk about buying compute, but there's a huge negotiation involved there in terms of, okay, do you get equity for the compute? What sort of partner are you looking at? Is there a go-to-market? Arm to that. And these are just things on this scale, hundreds o…”