How Anthropic’s IPO Could Unleash a New Wave of Venture Capital

0:00 Anthropics IPO demand is oversubscribed. What is your read on what that means for the venture community? I I think it's incredible for the venture community. This is a much anticipated IPO, and, we have we have been, you know, wait... Awaiting this moment for quite a while. I'm thrilled that it's going out this year. And I think this is just a huge validation for the companies that we've been backing in venture that are that are AI first companies. And, and I think there's a lot more to come. And what read throughs do you have for OpenAI and its potential IPO next year and what that may also mean for the broader market? Yeah. I think for OpenAI for next year, it's really interesting just the financial difference in in in, Anthropic versus OpenAI. I mean, Anthropic is, is really hovering and flirting with profitability, whereas OpenAI is a very different story. So I will be excited to see, just how the market market sort of receives OpenAI in light of that. And you were just making a really interesting point to me about the housing market in San Francisco and pricing, how it's related to this AI boom. Could you tell a little bit more to the audience? I loved it.

1:10 Yeah. There was there was a, there was a headline not that long ago in San Francisco saying the AI money bomb is about ready to hit the, SF housing market. And we've seen that already in anticipation, I think, of of the opening... Of the anthropic IPO. And we're seeing your pricing... Housing prices in SF, you know, you know, double and triple, you know, what their... What the asking price is. And so I think we may very well see this also in in the anthropic IPO. And then the the aftermath here is exciting because I think we will see, you know, what we haven't seen in a decade in venture, which is something called liquidity. You sound pretty bullish. We also are grappling with a lot of uncertainty right now in the face of the US midterms, in the face of the scandal that is rocking NVIDIA, and also among Neo Cloud's concerns about debt. How does that affect venture as well?

2:01 I mean, I think we're always, optimistic. We're we're cautious optimist in venture, But I do think, you know, what we're seeing right now is it is just an absolute generational company going public. And so I do think all of those concerns are valid, but, you know, AI is really changing the whole landscape of of what we can do in the, in both public and private markets now. And regulatory scrutiny right now, questions of oversight tends to be locked in on some of the biggest players, the hyperscalers, the Anthropics, OpenAI. What about the startups? How do you anticipate the blue wave potentially changing the environment for them, if at all? Yeah. I mean, I think we always have an eye to regulatory scrutiny because we invest with such a long horizon. We don't know, you know, what that regulatory scrutiny is going to bring in two years, four years, six years. And so we we, we invest in times when we believe that either way, you know, these companies are gonna be successful.

2:56 And where do you see the most attractive opportunities in the AI trade right now? Yeah. The most attractive opportunities, you know, in the private markets, we invest behind companies that we believe could not have existed but for AI and that, you know, couldn't have existed and succeeded three years ago. And we also pay a really close... You know, pay close attention to companies that, couldn't just be, you know, sort of over... You know, done by the by the models themselves. And so we see those opportunities in areas with very deep network effects with, deep workflow and understanding proprietary data and actually regulatory. And we actually have a company in regulatory just for that reason called Daptic that we recently did that, again, could not have existed but for AI three years ago.

3:41 What are they what are they doing in the regulatory space? Yeah. They enable very large, companies like Honda and some companies we we, we talked about already today to have a full complaint... Like, have a full compliance layer that they that they... The companies understand when they go into new markets and new ecosystems. And so they allow people to develop products that will be compliant globally.