🔥 Discover this insightful post from WIRED 📖
📂 **Category**: Business,Business / Artificial Intelligence,Moneyball
📌 **What You’ll Learn**:
Last fall, while venture capitalists were pouring record sums into artificial intelligence, a group of investors gathered to evaluate a new startup. Infinity Artificial Intelligence Institute has made software to automatically fine-tune AI models, making them faster and cheaper. The founding team seemed strong, and the market was expanding rapidly. Half of the investors were cautious. The other half saw dollar signs. One described the deal as “an absolute banger.”
This startup was real, and so was the $100,000 the VCs invested in its seed round. But the venture capitalists themselves were all customers of AI, and part of a new platform called ADIN, the Autonomous Deal Investing Network.
Launched in 2025, ADIN uses artificial intelligence to replace human analysts involved in closing project deals. Put together a pitch for a startup that will show a detailed analysis of its business model and founding team, a list of diligence questions and compliance risks, an estimate of the total addressable market, and a proposed valuation. ADIN has about ten different proxy investors, each with a distinct personality and investment thesis. Tech Oracle looks at the startup’s core technology; The unit head assesses the financial fundamentals; Monopoly Maker, loosely based on Peter Thiel, is looking for market dominance. When most agents like a startup, they suggest how much ADIN Fund should allocate to the deal. The platform does this in about an hour, compared to the days or weeks it takes for an analyst at a venture capital firm.
“The adventure game doesn’t have a high success rate,” says Aaron Wright, co-founder of Tribute Labs, ADIN’s parent company. The current approach—a sort of implicit intuition about who and what will become the great startups of the future—is very successful, with a startup returning 10 times the capital invested or more, in only about 1% of the time. Three-quarters of venture deals do not even recover their cost of capital.
As Wright sees it, AI models can dramatically improve these possibilities. He believes that venture capital is entering the era of moneyball, where quantitative methods trump human intuition, and everyone starts having more successes. “These systems will increasingly be able to eliminate bad projects, focus on more successful projects, and also reduce the cost of running some of these projects,” Wright says. Within years, he believes AI agents could become some of the best investors in the world.
When does this happen? “There may be no more Sand Hill Road.”
There are few groups of people more bullish on AI than venture capitalists, who collectively invested more than $200 billion in the AI sector last year. Advances in artificial intelligence models have changed the way investors think about almost every company, and in almost every industry. Vinod Khosla, founder of Khosla Ventures, recently predicted that AI will replace 80% of job responsibilities by 2030. However, many venture capitalists seem to underestimate how much AI will impact their jobs.
Marc Andreessen – famous venture capitalist and co-founder of Andreessen Horowitz – said in an episode of his podcast: Ben and Mark showThat when AI does everything else, venture capital may be “one of the last remaining fields that people are still practicing.” He said the job is more than just writing checks; It’s also choosing the right ideas, at the right time, with the right people, and then directing them toward success.
“This is not science, this is art,” Andreessen continued. “If it were a science, you might eventually find someone who connects with it and gets an 8 out of 10. But in the real world, it’s not like that. You’re in a fluke. There’s an intangibility to it. There’s an aspect of taste.”
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