Bucky Moore: Partner at Kleiner Perkins

Embracing AI for Survival and Success

Last week we had a dinner with Bucky Moore as part of Generative AI dinners at SV Icons.

Bucky provided great insights into how Kleiner Perkins thinks about investing in Generative AI startups and what he believes will happen in the nearest future. 
 
Here are some takeaways from our conversation: 

1.   AI and its applications are advancing rapidly. General purpose models can generate immense value but fine-tuning for specific use cases delivers the most impact. Many large companies with data sets will focus on fine-tuning existing AI models.
 
2.   Incumbents are at high risk of disruption from AI and new AI-powered startups, as it's a "code red" situation for everyone. They must embrace AI or risk losing out to more innovative competitors. Embracing AI is now crucial for survival and success.

3.   Investing in AI is challenging because information is changing fast, AI research is moving fast, new startups evolving rapidly causing investors to update their investment thesis frequently.

4.   When will AI investment slow or dry up? How quickly can AI companies create real value and meaningful revenue and profits? These are open questions shaping the risks and opportunities.

5.   Large tech companies will likely acquire promising AI startups to control innovation and strengthen their AI capabilities. They have a "patronage" advantage to ensure good returns on their investments.

6.   Exceptional founders, innovative ideas, and applications uniquely enabled by AI could attract interest even with more hype and capital in the market. Distribution, end market potential, unique IP, and exceptional team are key advantages for AI startups.

7.   Partnerships and integrations between AI software and services companies present opportunities. Some may dominate distribution of AI and shape the future of various industries.

8.   This Generative AI shift is very similar to internet, mobile, and cloud waves in terms of empowering developers, but it differently impacts incumbents, distribution, and capital intensity differently.

Bucky notes that everything as we know it will change. Forecasts point to huge growth, so founders must create value rapidly. Best of luck to all the founders out there!

Organizer: Aizada Marat and Chyngyz Dzhumanazarov