Eric Siu discusses concrete AI breakthroughs like Google's Gemma model helping cancer therapy and progress toward nuclear fusion, then examines whether the AI boom is a bubble. He covers how money flows to big players like OpenAI and Nvidia while smaller startups and SaaS companies struggle to find real value.
The Gemma model helped discover a new potential cancer therapy. So Gemma is from Google. And so you can see these models are— okay, there's another one here. I think this is also from Google, bringing AI to the next generation of fusion energy. So we're going to have more efficient energy. We're going to be able to solve cancer, I think, hopefully in the next decade or so, 15, 20 years, because cancer sucks, right? So people like to say AI is in a bubble. I don't think that works here when AI is actually starting to cure cancer and solving nuclear fusion.
Yeah.
Fusion. Fusion. Sorry. Nuclear fusion.
There's this girl on Instagram that I follow. She's a VC. What's her name?
Asian?
She is Asian. She's really good at just breaking down VC and—
I think I know who you're talking about.
What's this? It's Something Talks.
Sarah Guo?
No, not Sarah Guo.
It's— Something what?
Her username is like Something Talks. Zoe Talks?
Zoe Talks.
I don't know if I'm spelling it right. Z-A-U-E-Y. Zoe Talks. She's a VC. Am I spelling it right? I don't know who this is, but yeah, she's a VC, I believe, in New York.
Okay.
And she breaks down interesting concepts like, you know, the AI bubble. Yeah, it's a really nice phone. Yeah, you should have got the iPhone Air. Yeah, it has a lot of bugs though. I think it's more so the software, not the hardware.
I'll wait for the next one.
Yeah. When she was talking about the AI bubble and she did it in an illustration of like OpenAI, Microsoft, Oracle, like all the major players, including Meta. Dude, what people are tripping out on is all the money going around in circles.
Oh yes, the round tripping.
Uh-huh.
Yeah.
And that's what people are tripping out about. And I get what they mean. I'm not saying there is a bubble or there isn't a bubble, but if one of those players starts feeling the pinch, everyone starts feeling the pinch.
More so Nvidia than anybody.
Yes. Or if OpenAI starts feeling the pinch, it hurts everyone. And when you look at the round tripping that's happening with money, there's a few articles that I read. People have different reasonings and theories on this, but as long as the money going around in circles, these companies are all growing and it's actually causing more growth outside of the money that they're just circulating between each other. They're saying it's quote unquote not a bubble. But then you also hear people like Altman and a few others go on air and say like, yes, a lot of AI is overvalued and it is a bubble. And my whole take on it is I don't know if this round tripping or not is going to cause a bubble or not. I think what's really going to cause a bubble in AI is not OpenAI, not Nvidia.
Not the big ones.
Not the big ones. They're making money hand over fist and they're providing a ton of value.
A lot of small ones will go out of business.
Yes, it's the ones that are like, I do $50 million in revenue, I just raised money at a $10 billion valuation.
Or all these SEO products that have raised tens and tens of millions of dollars. I just don't understand where that's going.
Look at BrightEdge.
Yeah.
Right? It's a good enterprise product.
Jim, great guy.
Yeah.
Yeah.
Great product. And I would say it's one of the better tools out there, especially if you're a larger organization. I'm pretty sure they've tried to sell multiple times over the years. They've gotten offers. It's not easy and it's not easy to continually get growth. These SaaS companies, I think BrightEdge is good, but even if you're a good company, It doesn't mean that you're valued at $1 billion, $2 billion, $5 billion. And I'm not saying BrightEdge is claiming that, but a lot of players in the SaaS world have gotten hurt really bad from this. And yes, the big players like Anthropic and OpenAI, they're here to stay.
Yep.
They're going to be valued a lot of money over time. Maybe they're valued over too high right now, but they'll grow into the valuations over time.
That's a problem right now too, that the valuations are very high and then the VCs need to keep investing. They need to keep putting, you know, shots on goal, right? And so, but it doesn't align with all these other founders who think, Their company is worth that much, right?
