Batch brew #8

AI, AI, AI a.k.a. the word of 2023 & Tiny Capital IPO

Welcome back to the Caffeine Capitalist! ☕

Second issue of this year going strong. First of all, thank you for the positive feedback to our new layout. This time we looked a bit more at AI, with 2 pieces covered by Andrej and Martin. I was amazed to hear that Tiny Capital is planning its IPO, you can learn more about the founder, Andrew Wilkinson on this podcast or below in our Twitter thread department.

Get your espresso shot ready, this issue is going to take you 5 minutes and 12 seconds.

And special thanks to 15 new subscribers since last issue 🙏🏻

Dept. of Tiny Thoughts

The best analogy that I‘ve found for AI is that it’s like a calculator for reading and writing.

- Naval Ravikant

We all saw it, chat GPT this, generated AI images that, text to voice etc. The main topic of professional social networks of the past weeks. And not only there, Chat GPT reached 1 million users within 5 days, the fastest product ever.

Those who are not experimenting in their industry how to gain better operational efficiency, and we are talking about anything ranging from marketing agencies to startups, will be left out. We argue, Chat GPT et. al. will give agencies and solo entrepreneurs a competitive advantage. The question whether this will be sustained over long term remains.

We as entrepreneurs and caffeine capitalists just love this tool!

Dept. of Insights

1/ AI infrastructure platform

The AI platform layer (infrastructure layer) is set. ChatGPT (and soon new other AI platforms) are open platforms, accessible for 3rd party integrations via APIs. Many new projects and start-ups who are integrating ChatGPT are emerging, creating new tools for marketers, copy, developers, designers and many more use cases to come (AI application layer). The already existing infrastructure is setting the stage for new era of AI "revolution" after wave of mobile based start-ups and cloud based start-ups.

There is a lot of buzz about AI start-ups right now. Bubble or the next big thing? Certainly, companies who will not integrate AI platforms into their products or at least workflows will be left out and completely new AI-first players will emerge on the markets. We see how AI-first companies acquired significant market shares in different segments as for instance TikTok in social or Shein in e-commerce.

Learn more about the AI infrastructure and AI application layers in this great article by Digital Native newsletter.

2/ An Aging AI Article That Still Rocks the Mind

The internet has been buzzing with excitement over ChatGPT as the new "lord and savior" for the past few weeks. For some, this is their first encounter with advanced AI. But, let's not forget that AI has been around for a few years now.

When it comes to AI, we can classify it into three main categories, also known as "calibers."

  1. ANI - Artificial Narrow Intelligence (Weak AI): The chess-playing wizard, but don't ask it to organize your closet.

  2. AGI - Artificial General Intelligence (Strong AI): AI that is as smart as a human across all intellectual tasks (not yet achieved).

  3. ASI - Artificial Superintelligence: The overachieving brainiac who makes us all look bad, but also raises existential questions. AI that is much smarter than the best human brains in all fields, ranging from slightly smarter to trillions of times smarter.

It could take several decades for us to progress from ANI to AGI. However, once AGI is achieved, the possibility of AI rapidly advancing and becoming an "overachieving brainiac" is just hours away, as it can improve itself.

Once an AI system reaches the level of understanding the world around it as a 4-year-old, it would take only 90 minutes to rapidly evolve into an ASI, with an intelligence 170,000 times greater than a human's.

In our current understanding of intelligence, value of 130 IQ is considered smart and stupid is clocked at 85 IQ.

We don't have a term for an IQ as high as 12,952. This raises important questions about how we should approach AI and its role in our society.

This article from 2015, written before the creation of ChatGPT, provides valuable insight and is definitely worth a read > The AI Revolution: The Road to Superintelligence

Dept. of Twitter Thread Research:

1/ Ever heard of Tiny Capital? It's an OG micro private equity company on steroids built by Andrew Wilkinson, who is a founder turned PE investor. In the thread below you can find their story, how they got to over $1 billion enterprise value and pssst, they are doing an IPO soon.

2/ CEO/Operator Checklist by Ryan Kaufman. A simple bucket of best practices and principles for CEOs & also an inspiration to check on CEOs in your portfolio.

Dept. of Visual Research:

Sahil Bloom is great at dissecting mental models. Recently I stumbled upon his visual breaking down 4 types of us. We all experienced some of them, totally worth spending some coffee sipping quality time on this👇. Aaand, if you haven't signed up to Sahil's newsletter, we can only recommend doing so!

Sahil Bloom

News from our portfolios & where to shake hands:

  • Andrej took part in Slovak-Israeli IT business mission in Tel Aviv this week with visits in Startup Nation Central, EIT HUB Israel or DLD Innovation Festival. Learn more about key findings of the start-up ecosystem and comparison to the CEE ecosystem in a summary post on Linkedin.

  • VC Lab has a program introduction event next week, if you are considering launching your own VC firm you should sign up. Slavo has gone through VC Lab with ChopChop Ventures and can only recommend it!

  • Both ZAKA.VC & ChopChop Ventures will be together in Israel, Jerusalem from 13th to 19th of February, meeting startups and catching sun while enjoying good coffee. If you are there, let's connect!

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Enjoy your coffee fresh, allocate capital, repeat! See you in 2 weeks 👋

The Caffeine Capitalist is a bimonthly newsletter written by Slavo Tuleya, Andrej Petrus & Martin Nemecek. It is written in partnership & in support from ZAKA.VC and Chop Chop Ventures.

What do you think of this issue? We are still collecting feedback on our new layout, suggestions welcome!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.