Union Square Ventures

OH @ USV: We get together as a team every week to discuss what’s top of mind for the partnership. These conversations have historically been private but with new tools we can capture and share some of the highlights with you. Below are 5 conversation topics from a week of meetings at USV... 1/ Bots Bypassing Traditional Retail: Bots are increasingly bypassing traditional retail by directly interacting with vendors. This shift challenges the market power of platforms that aggregate products. As bots gain the ability to facilitate direct transactions, the necessity of intermediaries diminishes. This evolution could reshape the retail landscape, favoring direct producer-to-consumer interactions. 2/ The Evolution of Data Marketplaces: The concept of data marketplaces is emerging, where data right holders and AI applications interact. This model allows media, entertainment, and possibly healthcare or finance sectors to package and price their data. AI applications then purchase this data to enhance model performance. This new business model could significantly impact how data is monetized and what content gets created. 3/ The Mediated Digital Experience: There's a realization that digital experiences are increasingly mediated by AI, affecting how we perceive the world. This includes everything from social media to photography, where AI optimizes images and content. The conversation raises questions about authenticity and the nature of mediated experiences. Understanding these dynamics is essential as digital interactions become more prevalent. 4/ Memecoins as Entertainment: Our team has never agreed on memecoins. This week we talked about them as a form of entertainment akin to video games or musical chairs. They offer a global, decentralized game where the primary rule is to avoid being the last one holding when the music stops. This perspective highlights the speculative nature of meme coins, where economic risks are akin to playing poker. The allure lies in their universal appeal and the excitement of high-stakes trading. 5/ Decentralized Platforms Enable Innovation: Decentralized platforms like Farcaster are crucial for supporting agent and token ecosystems. They provide the open infrastructure needed for bots to interact freely. This openness fosters innovation and the development of new trading mechanisms. As platforms evolve, they may drive the next wave of decentralized finance and commerce.

AI's 'unreasonably effective' tricks may be hitting their limits. Can scaling alone eliminate some of AI's shortcomings or will we need entirely new approaches? Albert Wenger discusses some options in his latest post, "Scale is All You Need?" https://lnkd.in/etr3h7Mu