Microsoft accuses Google of dirty tricks, Khosla unloads on a California AI bill, and the world’s most expensive wine

StrictlyVC Briefing Doc - October 29, 2024 Main Themes: AI Regulation and Development: Heated debate surrounds AI regulation, particularly in California. Concerns about national security and ethical implications clash with Silicon Valley's push for innovation. Big Tech Competition: Microsoft accuses Google of anti-competitive practices in Europe, while Meta enters the search engine market, challenging Google, OpenAI, and Microsoft. Venture Capital Landscape: AI startups attract massive funding rounds, with investors increasingly focusing on emerging sectors and deal sourcing strategies. Cybersecurity Concerns: Cybersecurity remains a priority, evidenced by significant investments in companies like Armis and Filigran. Important Facts & Ideas: AI: Vinod Khosla criticizes California's SB 1047: He argues the bill's author, Senator Scott Wiener, is unqualified to address the national security risks posed by AI. Khosla believes these are global issues best handled by experts. “He’s clueless about the real dangers, which are national security issues,” Khosla said. “He’s not qualified to have an opinion there.” OpenAI's growth: The company boasts 250 million weekly users and 1 million corporate users, highlighting the widespread adoption of AI technologies. Tech Giants: Microsoft vs. Google: Microsoft alleges Google is orchestrating "shadow campaigns" to influence EU regulators against them, suggesting a fierce battle for dominance in Europe. Meta enters the search engine arena: This move aims to compete with established players like Google and emerging forces like OpenAI and Microsoft's Bing. Venture Capital: AI startups secure substantial funding: Agomab Therapeutics, Armis, Kivu Bioscience, Read AI, and Sierra all raised significant rounds, signaling strong investor confidence in AI-driven solutions. New AI-focused funds emerge: Former OpenAI executives are launching Depth Capital Ventures, highlighting the trend of AI experts entering the investment space. Cybersecurity: Armis raises $200 million: This substantial investment underlines the growing importance of securing connected devices in an increasingly digital world. Filigran raises $35 million: Their focus on cyber threat detection and response reflects the ongoing need for sophisticated cybersecurity tools. Other Notable Developments: Stripe's acquisition of Bridge: Sequoia Capital stands to gain over $100 million from this deal, demonstrating the continued potential for successful exits in the fintech space. Ethical concerns around AI: The sentencing of a man who used AI to create child pornography underscores the potential for AI misuse and the need for responsible development. Quotes: Vinod Khosla on Senator Wiener: “He’s clueless about the real dangers, which are national security issues... He’s not qualified to have an opinion there.” French vintner on his expensive wine: "What is the price you are ready to pay to have dinner with Napoleon?" Overall: This briefing doc highlights the dynamic landscape of technology and venture capital, with AI playing a central role. Key trends include the debate surrounding AI regulation, competition among tech giants, and significant investments in AI-driven startups and cybersecurity solutions.