Enjoyed reading about your angel investing journey - Hope to read more in future PSYSK

I had a brain lapse and didn't realize LLM was Language learning Model, which made the lawyer salary article make way more sense, crazy interesting to imagine how AI will affect various industries, law is a fascinating one with contact review, finding discrepancies in contacts, and more. It really is a heavily time-based industry that should benefit a lot.

Speaking of which, I'd be super curious if you'd invest in OpenAI at the suggested valuation of $29b? What are your thoughts on that, especially as they just launched their paid tier at $42/mo. Half of Twitter thinks it's insanely cheap (the paid tier), the other half things it's wildly expensive 😆

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Maybe both are right! Some folks are definitely getting 10-1000x the value from it or more, whereas for so many it’s a toy so the price point looks high.

As for putting a value on OpenAI, that’s above my pay grade! I think there’s an interesting profit cap to the structure of the deal. And I heard Sam Altman mention that there’s an escape hatch in the corporate structure that wipes out all equity in the event something dangerous happens with AI or the company.

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100% – wonder if there's a better way for them to capture value then versus just a broad $42/mo. Obviously there's the free tier, but then there's higher priority access/faster/more datapoints, that I'm sure some may be happy to pay much more per month (especially if it's for a company). I know it's still early on though and I'm sure the more complex pricing will come.

The interesting thing about the profit cap is that it's 100x, so say you get in at a $29bn valuation, that caps you at a $2.9tn valuation, where you can't make more than that. But to even expect 100x at these valuations is pretty nuts. It also seems more just words than an actual cap.

The piece about the escape hatch is the strangest bit of the raise, and sounds relatively worrisome for investors, I'm so curious how that would work and what might genuinely cause it to trigger. Would investors at least get their initial investment back in that case?

So curious what Google has in store with LaMDA, it already does some pretty impressive GPT-like summaries of chat threads in their Slack competitor Chat product:


Also gets me wondering when Slack will jump on the bandwagon, or if they will just leave it to other companies like thegist.ai to try and solve the summarization with AI side of things.

Even with all those unknowns and it being above your pay grade as you say, would you consider investing? Just curious where your head is at in the general potential of OpenAI as a whole? 😬

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As an arms-length illiquid investment I'd pass. If I had access to the management team, that'd probably change my calculus!

Thanks for the google summaries and thegist links!

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