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

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.
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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
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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?

2. 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?

3. 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?

4. 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?
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