Investing in The Code Age: AI possibilities
The recent breakthroughs and rapid adoption of generative AI have resonated deeply with us. We are convinced that we have entered The Code Age, a period where everything that can be generated by code or done by code, will be.
Over the past year, we’ve accelerated our investment pace and have made several new investments in startups and companies that we believe are well positioned to benefit from these advancements.
While key contributors like OpenAI, Nvidia, Microsoft, Meta, Google, Apple, Amazon, and others will likely benefit at the infrastructure layer, we also anticipate the emergence of highly valuable companies that specialise in specific applications or leverage the rapid progress in open-source models.
It is now clear that there are founders who have identified this potential and are building to make the most of these emerging opportunities.
Below are our beliefs, assumptions, and drivers that inform our view of future investments in opportunities empowered by technology.
Beliefs
The prevalence of code: We believe that everything that can be done by code will be done by code. This includes not only the execution of tasks but also novel creations made possible with code, text, images, video and more from generative AI.
Digital experience evolution: With more interactive and immersive technologies and increasing computing power, digital experiences will continue to improve significantly.
Exponential learning: The entire corpus of human knowledge, in all languages, is now available not only to search but to build on, learn from and work with.
Assumptions
Technology and Talent: With the ongoing rapid improvements in code and hardware, coupled with a growing talent pool in the tech industry, we anticipate substantial advancements and an increased trend towards digital solutions.
Emerging Opportunities and Adoption: AI is unlocking new possibilities previously deemed unfeasible or impossible, and we foresee a surge in the expansion and adoption of these technologies. Many tasks previously done by middle managers will either be removed or automated.
Elevated Expectations: High-quality, fast, and convenient digital solutions are raising consumer expectations, creating an expectation for superior experiences and services.
Drivers
Internet and Device Usage: The rise of internet-native communities, digital service availability, and the widespread use of computers and smartphones are driving increased online engagement and digital platform prominence.
UI/UX Advancements: Enhanced graphics, visuals, and user interfaces are significantly improving the overall digital experience, prompting users to spend more time online.
Technology Integration and Code Usage: The seamless integration of technology in our lives is simplifying its complexities, while companies' increased reliance on a code-first approach is replacing manual tasks and boosting performance.
More perspectives
Marc Andreessen from a16z penned an insightful article titled Why AI Will Save the World.
For our thoughts, see: