Exploring the Transformative Potential of OpenAI with Vince Hanks

In this episode of the podcast, Harry Stebbings sits down with Vince Hanks, a partner at Thrive Capital who led the financing for OpenAI's latest round. They delve into the world of artificial intelligence and discuss the key factors that led to Thrive Capital's decision to invest in OpenAI.

Unveiling OpenAI's Contributions to the Open Source Community

OpenAI has been making significant contributions to the open source community, particularly in the areas of regulation, security, and safety. Vince highlights how OpenAI is quickly figuring out the cost curve and discusses the company's commitment to advancing these crucial aspects of AI.

Recognizing OpenAI as a Transformative Technology

Vince explains that the decision to invest in OpenAI was driven by the belief that the company is at the forefront of a transformative technology that will revolutionize the way software looks and functions. He shares his perspective on the potential impact of AI and emphasizes the importance of approaching it with a balanced perspective.

Building Trust and Relationships with Founders

Vince emphasizes the importance of trust in building relationships with founders. He believes that trust is built through predictability and clear communication. He shares insights into his approach to investing and the value he places on authenticity and finding a personal approach that aligns with his own values and strengths.

Exploring the Potential Disruption in AI

The decision to invest in OpenAI was not obvious to everyone, but Vince and his team saw the potential for disruption in areas such as search and workflow automation. He discusses the value of AI at the application layer and how companies can create new and unique user experiences.

Regulation and Collaboration in the AI Space

Vince acknowledges the necessity of regulation in the AI space but emphasizes the importance of collaboration between regulatory bodies and the companies building the technology. He believes that effective regulation should not be overly burdensome and should be done in partnership to ensure its efficacy.

Overcoming Challenges and Looking Ahead

The decision to invest in OpenAI was not without its challenges. Vince discusses concerns about model commoditization and long-term edge, as well as the high price of the investment. However, the team at Thrive Capital believed in the transformative potential of the technology and the scalability of OpenAI's infrastructure. Looking ahead, Vince shares his hopes of continuing to invest in transformative AI companies and building a strong team and culture at Thrive Capital.

Tune in to this episode to gain valuable insights into the world of AI and the transformative potential of OpenAI.

Vince Hankes is a Partner @ Thrive Capital where he has led the firm’s investments in OpenAI, Melio, and Airplane.dev. He currently sits on the board of Airtable, Benchling, Lattice, and Melio. Prior to joining Thrive, Vince was an investor at Tiger Global where he learned the craft of venture from the legend that is Lee Fixel.

In Today's Episode with Vince Hankes We Discuss:

1. From Tiger Global to Partner @ Thrive Capital:

• How Vince made his way into the world of investing with Tiger Global?
• What are 1-2 of his biggest takeaways from working alongside the legendary Lee Fixel?
• Why did Vince make the move from Tiger to Thrive? How do the two firms differ?

2. The OpenAI Investment: The Memo:

• How did the OpenAI deal come to be? What were the round dynamics?
• Market Evaluation: How did Vince and the team analyze the market top down?
• Competition: Who did Vince identify as the core competitors to OpenAI?
• Defensibility: How did Vince think through the long-term defensibility of OpenAI's model? Does Vince believe these models will become commoditised?
• Price: How did Vince and the team get comfortable with the $29BN price?

3. AI: Hype or Generational Defining Transformation:

• Trend or Transformation: Why does Vince believe AI will be the defining technology of our generation?
• Startup vs Incumbent: Does Vince think the value will accrue to the incumbent or the startup?
• Open or Closed: Does Vince think we will operate in a closed (one model rules them all) environment or an open-source environment with many models?
• AI Talent: Where does Vince think the majority of the best AI talent will concentrate?
• Speed: Why would Vince be scared if he were a startup today looking at the incumbents?

4. The Changing Investor: Lessons from Good and Bad:

• How has Vince changed most significantly as an investor over time?
• What has been his single biggest investing mistake? How did he learn from it?
• What has been his biggest investing success? How did that change his mindset?
• What has Thrive done in their org structure to allow them to make bets very few other firms can do?