Robinhood CEO Vlad Tenev Wants to Change the Future of AI

AI Technology & Innovation - The cost of innovation is collapsing, marking a hugely important era that will transform lives [1] - Large language models (LLMs) are the most disruptive technology in history, but they are prone to errors, hallucinations, and uncertainty [1][2][6] - Harmonic is developing a mathematical superintelligence, an AI that can solve math problems exceeding the level of advanced mathematics researchers, to accelerate progress in science and technology [4][5] - Sandbox AQ focuses on large quantitative models (LQMs) trained on numbers and data, impacting 80% of the economy and driving innovation [11][12] Investment & Market Opportunities - There are two ways to invest in the AI future: focus on private AI companies or invest in public hyperscalers like Amazon, Microsoft, and Google [15][16] - A more fruitful approach may be to analyze industry-by-industry to identify AI winners and losers in sectors like pharmaceuticals, energy, telco, and financial services [17] - Winners embracing AI and laggards not embracing AI fast enough will see billions of dollars of market cap difference [18] Business Applications & Commercialization - Large language models (LLMs) can cut costs, potentially saving companies $10 million to $20 million annually on customer service from a $30 million cost base [12] - Large quantitative models (LQMs) are creating new products and billions of dollars of new revenue, primarily in B2B applications [13] - Sandbox AQ is working with Sanofi (a top 10 pharma company) and Aramco to advance life-saving medicines and upvalue hydrocarbons, respectively [14] - Investors should look for AI applications with clear business cases, such as accounting, taxes, drug discovery, and risk evaluation [22] Risk & Limitations - Large language models (LLMs) are often very confident but can be incorrect, with few controls over hallucinations, hindering adoption in mission-critical industries [6][7] - Any AI system will make mistakes, and investors must ensure that these mistakes do not bankrupt the company [23] - Harmonic closed a $75 million Series A funding round led by Sequoia Capital [8]