Vinod Khosla is now more popular than ever. The Sun Microsystems co-founder became a outstanding investor — first at Kleiner Perkins and over the past 20 years at his enterprise capital firm Khosla ventures — has at all times been wanted by founders due to his sound advice and his company’s history, including bets on Stripe, Square, Affirm and DoorDash. But we’re risking $50 million OpenAI in 2019 – when it was unclear whether the team would achieve success on this scale – they put Khosla Ventures and Khosla himself within the highlight.

He’s having an important time. I met with Khosla in Toronto last week Collision conference and before our appearance on stage, he told me that he has been making public appearances several times per week recently – on stage, in podcasts, or in TV interviews. Asked if he was exhausted from his schedule – he flew to Toronto just hours before our meeting, for instance – he shrugged.

There are definitely things he prefers to discuss, and the art of creating deals isn’t certainly one of them. “Honestly, the investor side is much less interesting to me,” he said once I asked him about something I recently heard, which is that he hasn’t taken a dollar in management fees since founding Khosla Ventures, although it’s currently she has $18 billion in assets under management. (He confirmed this, but said it only applied to himself, not a corporate-wide policy.)

He’s far more keen about the startup opportunities he sees in a landscape that is changing day-after-day with advances in artificial intelligence, so we talked about some areas of that white space. We also talked about what worries him most concerning the effects of artificial intelligence; FTC Chair Lina Khan; and why, in his opinion, “Europeans have thrown themselves out of leadership in any field of technology.”

First, we talked about Apple’s shiny recent cope with OpenAI, which allows Apple to integrate ChatGPT with Siri and its generative AI tools. Apple may strike similar deals with other AI models, including Meta, but obviously as an OpenAI investor, Khosla is bullish on this deal, which is the just one Apple has announced publicly yet.

Khosla called it a “validation” of OpenAI; in announcing its pact with OpenAI at a celeb developer conference, Apple “also expressed, I think, confidence in (OpenAI CEO) Sam (Altman) to lead (AI development) over the next five or 10 years,” Chosla said. “When a company like Apple commits to technology, it usually doesn’t change it the next year.”

As we have seen at TechCrunch, lots of Apple’s newest features are more likely to change into obsolete. I asked if any of Khosla’s portfolio corporations were affected. Part of me was wondering about Rabbit, whose AI-powered hardware device goals to be a form of AI assistant for users and is backed by Khosla Ventures.

Asked whether Apple could make the device obsolete, Khosla suggested it’s more flexible than people imagine and might be utilized by businesses equivalent to hospitals, including emergency rooms. He put it in a growing range of things that may “watch what you do, see what you do and respond automatically.”

In fact, Khosla suggested that his team actively avoided anything that might change into “roadkill” as large language models like OpenAI proceed to advance. And he identified at the least one company that isn’t in his portfolio: Grammaticallywriting assistant startup that was valued at $13 billion by its backers not too way back.

“If you are coping with, say, grammar, it’s really a minor challenge in comparison with today’s model and Grammarly cannot sustain; this could never have been an app. It shows the necessity for this capability, but it would be a part of Word or Google Docs. It’s quite obvious. When we check with YC corporations or other corporations,” Khosla continued, “I can often say, ‘Half of those corporations shall be obsolete by the point the YC batch runs out.’

Khosla sees numerous opportunity in industries where expertise shall be almost free, although it isn’t clear to me how these corporations will sustainably earn cash (even after asking him). Think about tutoring and even oncology.

Said Khosla: “Open AI or Google won’t build a chip designer (to have on your smartphone). OpenAI and Google won’t build a civil engineer. They are not going to create a primary care physician or a mental health therapist,” he said. “So there are such a lot of areas for (my founders). But they need to have a look at where the models are going next 12 months and five years from now and say, “We want to realize this potential.”

We also talked about regulations. I noticed that Khosla had previously said that closed large language models like OpenAI needs to be protected, although there needs to be a regulatory framework around them. I wondered if this meant Khosla would perpetually eschew other “open source” AI.

Not in any respect, he said, noting that he’s a “huge fan” of open source. He said Sun was certainly one of the primary corporations to “leap into open source” and open source its file system. He also noted that Khosla Ventures was the earliest investor in GitLab, whose software invites people to work on code together.

However, he suggested that open source within the context of huge language models is a totally different matter. “The biggest risk we face with AI is China” and “the powerful Chinese AI” that competes with the “liberal values” of the United States, he said, adding that “we need to make sure China stays behind us.” . Otherwise, he warned, China will provide the remaining of the world with “free doctors and free oncologists” and in the method “export both the economic power of artificial intelligence and its political philosophy. “

On stage, I discussed to Khosla my recent meeting with FTC Chair Lina Khan, who doesn’t imagine within the national champions model as a reason to coddle corporations like Google and OpenAI as they proceed to develop artificial intelligence.

Khan always hears from executives and investors who say that government intervention will lead the U.S. down a dangerous path. However, during my conversation, she argued that the United States has time and time again chosen the “competitive path,” which “has ultimately driven and catalysed lots of these breakthrough innovations and far of the extraordinary growth that our country has enjoyed, which has allowed us to sustain advantage within the international arena.

If you take a look at other countries which have as an alternative chosen this model of national champions,” Khan added on the time, “they have been left behind.”

However, I had barely mentioned Khan when Khosla became dismissive, calling her an “irrational human being” and accusing her of not understanding the business.

“She shouldn’t be in this role,” Khosla said. “In every country and economic system, it is good to have antitrust laws. However, antitrust laws (that is) over-enforced or over-enforced are bad economic policy. The one thing the United States has over its European rivals is a much more rational business environment. This is why Europeans are no longer the leader in any field of technology; they have simply regulated themselves beyond artificial intelligence, all social media, and all internet startups.”

Of course, if some antitrust enforcement is sweet, but an excessive amount of isn’t good, the query is where to attract the road. At this point, before we parted, I discussed the “abundance” that Altman predicts shall be created by artificial intelligence. At certainly one of TechCrunch’s StrictlyVC events last 12 months, Altman said the “good argument” for artificial intelligence is “so incredibly good that you sound like a really crazy person when you start talking about it.”

Khosla said he believes the identical, but I actually have long wondered how society will enjoy all these advantages if regulators do not get more involved in the event of those corporations. After all, I told Khosla on stage, we now have already seen massive aggregation of wealth and power tied to an increasingly smaller group of corporations and other people. When is enough?

In this case, Khosla said the problem concerned him greatly. “I think in 25 years, when I’ll hopefully still be working. . . the need for work will mostly disappear.” Still, while AI should deliver “great abundance, great GDP growth, great productivity – all the things that economists measure,” he said, he worries “more than anything else” about “growing income disparities.” How can we (ensure) a good distribution of the advantages of AI?”

He has a sense where the breaking point could be. “If GDP growth (in the U.S.) increases from the current 2% – currently less than 1% in Europe – to 4%, 5%, 6%, we will have enough abundance to share the wealth and benefits.”

Whether and the way this happens are, after all, even greater questions, and for all his brilliance, Khosla, a self-described techno optimist, did not have the reply. Instead, he thanked the audience for his or her time, then walked off the stage toward the dozen founders gathered within the wings, all hoping to maintain his ear so long as they might.