Early AI investor Elad Gil finds his next big bet: AI-powered rollups

Elad Gil started betting on artificial intelligence before most of the world noticed. By the time the investors began to absorb the effects of Chatgpt, a generation had already written seed tests to startups such as confusion, personal. Now, when the first winners in the wave of artificial intelligence have become more clear, the famous VC “Solo” is increasingly focused on a new opportunity: the use of artificial intelligence to re -invent and expand traditional companies through coils.

The idea is to determine the chances of buying mature companies and dense density such as law firms and other professional services companies, and help them expand through artificial intelligence, then use improved margins to acquire other works of this and repeat the process. It was in that for three years.

“It seems very clear,” said Jill on a Takbeer call earlier this week. “This type of obstetric intelligence is very good in language understanding, language processing, text processing, and text production. This is sound, and this is the video, includes coding, communication with sales, and various rear office operations.”

“If you can convert some of these repeated tasks effectively to software, you can increase the margins significantly and create very different types of companies,” he said. He added that mathematics is particularly convincing if one of them owns the work directly.

“If you have the original, you can [transform it] Gil said: “Future is much faster than if you only sell programs as a seller, and because you take the total margin of a company from 10 % to 40 %, this is the huge elevator. Suddenly you can buy other companies at a higher price than anyone else because you have this increasing cash flow for each work; you have a huge lever to work on a relative basis, so you can do diseases in ways that others cannot.”

So far, the generation of two companies support this strategy. According to information, one of the one -year -old companies, called ENAM, focuses on workers’ productivity, which is valued at more than $ 300 million by its supporters, including Andressen Horowitz and Openai’s Startup Fund.

Although Jill says he cannot discuss the details of private deals, he suggests that the approach is something new. He says: “He used to have these lists that support technology for 10 years, and most of them ended until this is not many technology users,” he says. “It was like a delicate cortex drawn to increase the company’s evaluation. I think in the case of artificial intelligence, you can actually change the structure of the cost of these things radically.”

Whether the approach proves profitable as it is still seen on some of its other bets. A famous generation supported a group of large brands that produced wealth for its supporters, including Airbnb and Coinbase, both of which are now circulating publicly, and a private tape, where he wore his evaluation around him but settled in the range of 91.5 billion dollars earlier this year, when its supporters bought more than its stock.

Jill noted that part of the challenge with Roll-UPS is to find the appropriate team formation-with a strong technician alongside a “very strong PE” person-and “these things do not go side by side.” He said that he met “perhaps two of these teams” so far and often looked behind them, not because they were “amazing”, but because they “still need to sort some things.”

Jill, who has profound relations with companies all over the Silicon Valley, may find himself competing with these frequent collaborators, as an increasing number of them, such as Khosla projects, think whether they will follow Amnesty International themselves.

One feels that, in both cases, a generation in which there is no money at this stage if it is ever. He says his ability to discover trends early, most of which come from the heart. “I love technology, I love progress, and I love just engaging – with people working on important and interesting things, but also technology itself.”

He said that when I fired GPT-3, for example, a generation was already experimenting with its predecessor. “When GPT-3 came out, it was a big jump from the GPT-2 so that you can just deduce the technology curve. You love,” Oh my God, if this continues and expanded its scope-all the scaling laws were clear-“this will be a transformation.”

This practical approach continues today with the collection of the small team generation, including “people with very deep engineering backgrounds” who “play periodically with all the front companies of Amnesty International. One person in my team writes a set of text programs and we run them, look at performance, look at tools, which is great.”

Because of this continuous absurdity, after years of uncertainty in the artificial intelligence market, a generation sees two clear winners. He said: “I used to say, even six months ago, that the more I knew about artificial intelligence, the more I knew, because the markets were very dynamic; the technologies were very dynamic.” “I feel that I am in the past two months – perhaps in the last two quarters – a truly sub -market has been crystallized.”

In the law, “We know a kind of the main winner or the main winners will likely be. This is true in health care. This is true in customer success and support,” said Jill, who clearly believes that these companies include his wallet companies, which he cited in our conversation.

Among these bets, Harvey, which develops large linguistic models for law firms and internal legal teams and is said to be in talks to collect new financing, with a rating of $ 5 billion; Abridge, a health care company aimed at improving the workflow of the clinical documents for doctors (which was a tour of the Series of $ 250 million by a generation again in February); The Sierra Ai, which was established by the famous operator Brett Taylor, which helps companies implement artificial intelligence agents to serve customer service. (The company was estimated by billions of dollars outside the gate.)

However, a generation is keen not to announce the game. “I do not mean to draw the image that ends the game or that things are over. I think it is possible that there are more than twenty companies that seem interesting, and perhaps now there are three or four of them [per vertical]. The map of potential winners is established. “

Meanwhile, it is clear in the conversation that this moment represents more than just another investment course for it. He said: “I think it is a truly fun period, because a lot of change occurs, so there is just a ton to do.”

He added that the presence at the intersection of two transformation – not only betting on the future of artificial intelligence but in the future of how to reshape everything else – is simply “sexy”.

We will have more of our conversation with Gil – which also touched on the handrails, save the gate, and how companies can integrate technologies that will make their business or break – in the latest episode of PodCast Strictlyvc, which is released on Tuesday.