“Sam Altman Poses a Big Question — Indian Tech CEO Steps In with a Bold Reply”
OpenAI CEO Sam Altman recently asked an interesting question about the venture capital (VC) world — why does it keep getting more money, even though overall, it keeps losing money? His question sparked a lot of responses online, including one from Cred CEO Kunal Shah, who shared his own take on the issue.
On May 4, Sam Altman tweeted about a strange trend in the VC world — venture capital firms keep investing more money, even though the industry as a whole has been losing money over the long term.
“This is much less important than tweeting about agi, but it is nevertheless amazing to me that the entire venture industry can (in aggregate) lose money for so long and keep getting funded,” Sam Altman asked.
Altman’s question got replies from many people, including CEOs, founders, and co-founders of different companies. One reply that stood out came from Kunal Shah, the founder of Cred. “HOPIUM,” Shah said in X.
Amjad Masad, CEO of Replit — a platform where you can write and run code online without any setup — also replied to Sam Altman’s question. “half of it goes to ai tokens and the other half to sf landlords,” he said.
Another one wrote”VC is typically an allocation bet versus an active one building ok swensens endowment model of a balanced portfolio Giving to a fund of vc funds or a group of funds diversifies risk and returns typically don’t come up for 7-10 years anyway. Like S&P losers fall away so net +ve.”
