Tusk Ventures CEO on AI spend: If there’s a paying product people want, that’s a good investment

AI Investment & Market Concerns - The discussion revolves around the potential formation of a circular economy within the AI sector, questioning whether companies are simply investing in each other rather than creating genuinely new markets [1][2][3] - There are concerns about over-investment in AI infrastructure, with approximately $450 billion being deployed, raising the possibility of a bubble [6] - The industry needs independent third-party analysis to assess whether the demand will justify the massive investments being made in AI [9] - The current enthusiasm for AI may not be fully warranted based on actual unit economics and possibilities, but rather driven by incentivized experts whose net worth benefits from inflated valuations [7][8] Regulatory Landscape & Investment Strategy - Tusk Ventures focuses on investing in companies at the intersection of regulation and technology, particularly those regulated at the municipal or state level, where outcomes are more achievable [16][17] - Investing in companies requiring federal-level regulatory changes can be problematic due to potential indefinite delays, citing the example of autonomous vehicle regulation [18][19] - The firm is cautious about areas like autonomous vehicles due to the uncertainty of Congress's willingness to make significant changes to interstate commerce [16] AI Applications & Profitability - Tusk Ventures prioritizes AI investments in companies with current, profitable applications of AI, rather than relying on future hype [13][15] - Kodiak, an autonomous trucking company desbacked by Tusk Ventures, is highlighted as an example of a company using AI profitably, with the US military as a major customer [14]