Elon, Silicon Valley and Government

An Opportunity or a Problem?

There is one winner regarding the most significant story this week. Elon Musk and Vivek Ramaswamy have been made advisors to the Trump administration on Government efficiency in a department called DOGE (Department of Government Efficiency). Their advisor status is widely assumed to be to avoid apparent conflicts, but in reality, they are likely to wield much power.

It is rumored that Marc Andreessen was also seen on election night in Mara-a-Lago and is engaged in giving Trump advice on Tech issues.

Many of my friends (perhaps you are one of them) are horrified that Elon has this much power and are inclined to assume bad things will happen. That may well be right, but…..

It makes sense to stand back and talk about “Government.” What is it? Who is it for? Can it be improved? How can it be improved? These should not be scary questions, and Elon Musk’s presence can be good or bad, depending on what ensues. For now, at least, I want to give him the benefit of the doubt.

What is Government? There is no question that the government is intended to be a service organization that provides the agreed-upon services to the people. Government of the people, for the people, and by the people does mean something. It includes executive, legislative, and judicial functions. However, most of those employed by the government deliver local and federal services.

Who is it for?

The government is for all of us. It is not a partisan organization. It creates and administers. Because it is a vast bureaucracy, it certainly can serve itself rather than us, and elections are where it can be held accountable. The belief that it has been captured is permanently damaging to its credibility. It must be neutral and service-focused.

Can it be improved?

If you have ever been to your local DMV, you know that it can be improved. Processes and costs are both subject to review and improvement. Cost is a genuine concern, and any innovation designed to deliver improved services at lower cost should be welcomed. How a service is offered may be a pivotal way to make it better and more affordable. Education is a great example. What would a sound education system look like in the age of AI? Health and Military also.

How can it be improved?

This is where Elon Musk and Vivek Ramaswamy can be an asset to us rather than something to be scared of. If Musk commits to asking how each service can be delivered, he will likely want to modernize, not destroy. Modernized education, health, military, infrastructure, and planning would all be benefits we should champion.

Improved service delivery may make saving $2 trillion possible. Estonia is a good study of a modern government; there is much to learn. But Musk may even go beyond Estonia.

Give him a break and advice.

So, I will bet on Elon doing good things and hold him accountable for delivering on them. He is working for us, and we care about the outcome. Assuming failure is not helpful.

I assume he will bring technical skills, AI, and people to the party who are all working for us, not against us. Silicon Valley thinking, delivering government as a service may end up being the best thing this election delivers.

The election has significantly increased the writing output of almost everybody I read. So this week, the essays and news are both long sections: Significant Themes in Essays of the Week

• The Future of AI Development
• Several essays discuss the trajectory of AI, particularly large language models (LLMs). Some, like?"Is AI Progress Hitting a Wall?"?and?"The AI Wall," suggest that the rapid progress seen in LLMs might be slowing down. They point to the limitations of current approaches and the enormous resources required for further scaling.
• However, these essays also acknowledge that the field is evolving. New techniques, like inference-time compute, offer potential for improvement without needing massive increases in pre-training data and computational resources.
• Other essays, such as "Blown Away," express excitement about recent innovations, such as NotebookLM's ability to generate summaries and Anthropic's Computer Use API, which allows AI to interact with computer interfaces. Overall, the essays paint a picture of a field at a crossroads, where the initial hype gives way to a more realistic assessment of challenges and the exploration of new approaches that could lead to further breakthroughs.
• Silicon Valley and Politics
• A prominent theme is the increasing intertwining of Silicon Valley with politics and government. "Welcome to Life on Planet Elon" discusses Elon Musk's prominent role as an advisor in the Trump administration, highlighting the potential benefits and concerns about his influence.
• "How Silicon Valley is Prepping for War" expresses concern about the growing involvement of tech companies in military and national security initiatives, suggesting a trend toward militarizing AI. The essay highlights ethical considerations, the potential for dystopian uses of AI, and the blurred lines between Silicon Valley and government policies.
• "Techies Push Other Techies to Musk to Join Trump Administration" reports on tech leaders recommending their peers for positions in the Trump administration, further emphasizing the tech sector's increasing influence on politics.
• Venture Capital Landscape
• Several essays focus on the dynamics of the venture capital (VC) industry. "Access is everything" emphasizes the importance of access to top-tier funds for achieving high returns. The essay discusses the role of data in VC decision-making, the potential of emerging managers, and the need for innovative investment models.
• "Time Dislocations in Venture Capital" describes VC as a "lumpy, long-term annuity," where investors shift capital from the present to the future with the expectation of higher returns but also higher risk.
• "Startups Are Far More Overvalued Now Than in 2021" raises concerns about inflated startup valuations despite declining public software company valuations. The essay points to the surge in AI investments as a factor driving these high valuations but questions their sustainability without substantial growth in the software and cloud sectors.
• These essays provide insights into the current state of VC, highlighting both opportunities and potential risks for investors.
• Social and Political Commentary
• Beyond focusing on AI and VC, the essays also touch on broader social and political issues. "Embrace The Nuance" addresses the complexities of political discourse and the dangers of oversimplification.
• "Dear Journalists: Stop Trying to Save Democracy" critiques the role of journalists in a democratic society.
• "The Educated Professional Class is out of touch with America" discusses the growing divide between the educated professional class and the rest of the country, highlighting the implications of this trend for politics and society.
• "Democrats and the Case of Mistaken Identity Politics" critiques the Democratic Party's focus on identity politics, arguing that it alienated key voter groups and contributed to their electoral defeat.

I was part of a panel on the future of venture funding, it is the Video of the Week.

Hat Tip to this week’s creators: @danshipper, @mgsiegler, @KyleHarrison18, @DouglasKMurray, @AISupremacyNews, @2020science, @idanbeck, @rhodgkinson, @scottehartley, @mikeloukides, @deanwball, @SiliconZombies, @parmy, @ajkeen, @Kyle_L_Wiggers, @maureendowd, @noahpinion, @jasonlk, @KateAndrs, @alex

Contents

• Editorial: ?
• Essays of the Week
• Video of the Week
• Interview of the Week
• Startup Of the Week
• Post of the Week
• News of the Week