AI on the blockchain, Waymo's rise, and the truth about tech layoffs | E1996
26 Aug 2024 (24 days ago)
Jason and Alex kick off the show
- A discussion about the news outlet "The Information" and its recent coverage of the company B.
- A plan to discuss the company Waymo and its growth, as well as open-source self-driving technology.
- Upcoming topics include layoffs in the tech industry and a deal involving the companies Databricks and Tabular.
Bolt's fundraising controversy and business model
- Bolt is a fintech startup founded in 2014 that aims to streamline the online checkout process for customers.
- Bolt's business model involves partnering with merchants and charging them a transaction fee, estimated to be around 2%, for utilizing their one-click checkout service.
- Despite raising significant capital, Bolt faced criticism and lawsuits from investors who alleged that the company misrepresented its performance, leading to an inflated valuation.
CEO loans and board conflicts at Bolt
- A CEO taking a large loan from their own company presents several risks, including creating a conflict of interest and distracting them from their responsibilities.
- It is generally considered poor practice for board members to give loans to or buy shares from the CEO of the company, as this can create conflicts of interest and incentivize unethical behavior.
- While allowing founders to sell small percentages of their shares can be acceptable to alleviate personal financial distractions, selling large portions can lead to a decrease in focus and commitment to the company's success.
Lemon.io - Get 15% off your first 4 weeks of developer time
- Lemon.io offers vetted, experienced, and results-oriented developers with competitive rates.
- Lemon.io only accepts the top 1% of developer candidates who apply, all of whom have a minimum of three years of experience and strong portfolios.
- Lemon.io promises to find clients a replacement developer as soon as possible if needed.
Public vs. private equity borrowing and media integrity
- Public companies often borrow money against their public equity holdings because they are liquid and their worth can be determined easily.
- A company's announcement of a funding round raised concerns because it lacked specific details about the investors involved, only mentioning their geographic locations.
- There is a tendency in the current media landscape to prioritize sensationalism and avoid admitting mistakes, which can erode trust and credibility.
Technology media industry reflections
- The technology news media landscape has shrunk, with fewer prominent outlets and a decline in lively discussion compared to the earlier blog era.
- The decline of the technology news media is attributed to the shift in advertising revenue towards platforms like TikTok, Amazon, Meta, and Google.
- New models for technology news are emerging, including subscription-based services, database-driven approaches, and podcasts, but challenges remain in balancing free and paid content while maintaining financial stability.
Tech Domains - Apply for the Jam Session with JCal contest today
- A contest called "Jam with JCal" is announced, where founders can pitch their startup ideas.
- To be eligible, startups must have under $2 million in funding and use a ".tech" domain name.
- Selected participants will have the opportunity to pitch their company on the podcast.
Waymo's growth and autonomous vehicle market
- Waymo's paid rides per week doubled from 50,000 in May to 100,000 in August.
- Uber currently completes approximately 250 million rides per week.
- Waymo utilizes vehicles from manufacturers like Volvo and Audi for their autonomous fleet.
CommandBar - Visit to get a custom live demo.
- Building software and training users on it is difficult.
- Commandbar is a startup that uses generative AI to onboard users with personalized chat responses.
- Commandbar is used by companies like Hashicorp, Gusto, and Six Cent Angellist.
Story raises $80M for blockchain-based IP network
- Story, a company developing a blockchain framework for tokenizing and monetizing intellectual property (IP), has raised $80 million at a $2.25 billion valuation.
- The platform aims to address the lack of attribution and compensation for creators whose work is used in training AI models.
- Concerns are raised about the investment's valuation, the viability of the business model, and the regulatory scrutiny of crypto projects by the SEC.
Stablecoins and SEC investigations
- The SEC is investigating venture capital funds for potentially acting as unregistered securities dealers.
- The SEC is examining whether venture capital funds that bought tokens at a discount and later sold them for a profit after the tokens were listed on exchanges may have violated securities laws.
- When venture capital funds receive discounted tokens and later profit significantly from selling them after a public offering, it can be perceived as a transfer of wealth from retail investors to already wealthy institutions.
The truth behind tech layoffs
- Companies like Cisco and Intel are making significant job cuts, with Cisco reducing its workforce by 7% and Intel by 15,000 employees.
- These layoffs are partly driven by a desire for greater efficiency, with companies aiming to reduce costs and streamline operations, potentially influenced by the success of similar measures at companies like Twitter, Meta, Microsoft, and Google.
- The layoffs also reflect a generational shift in the workforce, with older, potentially overpaid employees being replaced by a younger, more tech-savvy generation and AI technologies.
Audience questions
- The cost of hard drives is currently very low, approximately $20 per terabyte.
- Blockchain is an inefficient database style due to its replication across multiple servers and immutability, making it unsuitable for storing large amounts of data.
- London's congestion charge is £15 per day, and the revenue generated, approximately £155 million after operational costs, is invested in public transportation, cycling initiatives, and environmental programs.