Jerry Neumann on the Problem With Investing in AI Right Now

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Jerry Neumann, a retired venture capitalist and Columbia Business School professor, about his essay "AI Will Not Make You Rich." The conversation explores the idea that while AI is a revolutionary technology, it may not lead to widespread wealth for investors and entrepreneurs, drawing parallels to the containerization revolution. They discuss the importance of value capture versus value creation, the role of incumbents versus startups in benefiting from new technologies, and the potential for an infrastructure bubble in the AI sector. Neumann shares his insights on technological cycles, the IPO market, and the differences between the dot-com bubble and the current AI landscape, emphasizing the need for companies to focus on expanding their customer base and passing efficiencies on to consumers rather than simply cutting costs.