OpenAI DALL·E: Generative AI, Copyright, Deepfakes & Startup Investing | Deconstructed VC #1

all five of us including the cat good morning everyone so it's been a week and this is our second episode I'm I'm like super excited to be here with you guys I brought some news that I'm just dying to discuss I didn't even invest in someone yeah yeah we just closed a few deals we just closed the deal with a company called permit flow it's basically Turbo Tax for Constructors Architects General Contractors they automate the permitting process for them so they can get to like a city hall online without having to physically go to the City Hall to get permits for whatever they're doing it doesn't matter about the season yeah like PC is actually very seasonal it's it's very seasonal there are like two seasons like the first is early spring anything like starting from like February no no it's fine because they're making they're making Customs for burning men in summer yeah I know the supervision and winter like in holiday season everybody is going to Saint Saint Barts this is just you know how the the industry works so the founders have to excuse us where like Filthy Rich investors we have to you know spend some quality time with each other we as investors are fundraising ourselves we gotta go where the real rich people are to raise money from them from like all these hedge fund managers and pension fund managers to basically take this money and give it to Founders so we can we can innovate together okay you're like a Robin Hood with a little Commission yeah that that is true that is true but like we don't give out money we we're actually we're gonna be back after that we're going to be collecting them with with

profits let's quickly deconstruct the layoffs news because what what I think is missing is the big picture everybody's talking about the layoffs everybody is looking is like oh my God this company has just like laid off for a thousand people first of all guys there's about 390 000 tech jobs right now in the country and unemployment still very low so the big picture is unemployment's less than three percent that's record low so record layoffs in tech companies that are still looking and still hiring some of them do have hiring phrases but they're still hiring some of them are like Meda is has announced the high run freeze three months ago I know like three people who just got hired by meta so they are definitely not you know completely freezing so I don't think it's we should be panicking about is tech people Engineers especially won't be losing their jobs won't be losing their income source for the nearest Future but the trend is that it's the the period you know the the epoch of easy cheap money is is getting over so money is getting more expensive to get for like to run your business but good news since they call like since the pandemic we have been what like two years two and a half years of of lockdown economy there is a whole new generation of companies there's a these are like two years old that have never had an office and these are like remote first companies and they're hiring remote by the way we invested an amazing company called Remo first they help companies hire people remotely like pay them like put them on payroll give them stock options you know get them like a health insurance and other benefits

even if they're like in different countries they work in 150 countries I think so open AI one of my favorite companies in the world I really like their mission and vision and I like that they are like not the loop for profit they they're a cap profit company that means that their shareholders won't make you know too much money in it it's just like limited just a little bit of money the AI that creates images Stills or paintings for you based on just like a text you input in so you can say if Penguins would Escape From New York zoo and jump on the subway this is gonna paint it for you this is what it does can you see this all of these images have been created by artificial intelligence from scratch these are not real Penguins not real people not real Subway all of this has been just created by AI based on based on a few words somebody has input I tried it a little bit I tried playing around with it like it allows people to make photos with a Viewpoint of an ant for example you can you can ask for Marilyn Monroe still you know the famous like Photo when she's like holding down her skirt but like from the Viewpoint of an ant would do that it can you can ask for like how would Homer Simpson look in stranger things and it it will do that for you but the actual this is not news this is not new that's been around for about half a year people been playing with this what's new is that open AI now release their rights and they are authorized anybody to use this for commercial purposes artists in advertising agencies

can now use this to promote stuff there's a lot of questions with you know copyright infringement because if I do like Homer Simpson in stranger things I'm kind of infringing on two copyrights there what if I make like a t-shirt and sell it and say that this has been introduced by open Ai and there's another question that open UI has been trained on works of art of other people that did not necessarily agree to that like if I'm an artist and I created in like a piece of art I did not opt in to let the like them train the AI on it so they might be infringing my rights but this is like you know something we can deal with later what I am super excited about is that this is a tool that will allow people to just go Bonkers creative they can everybody suddenly becomes an amazing painter you you have an idea that means you can you can have a painting of it or you can have a photo of it okay I have a question so last week we talked about Judges that would be replaced by AI today we are talking about artists who's next VCS you see the thing is that like the Georges are not going to be replaced by artificial intelligence it's a tool you know like there's a good example when spreadsheets first were introduced like Microsoft Excel everybody was like oh my God this is the end of the job of an accountant accountants you know gonna disappear we won't have any more accountants guess what the number of accountants in the economy has grown 20 times 20 accents Microsoft Excel has been introduced it helps more people become accountants because now they can

use this as a tool the amount of useless content that will be created and how it will make our life even more difficult to understand which content is available or not fake or not and so on I I've seen a lot of news about that now there are a lot of startups are trying to solve this problem of copyrights like fake nfts like not not fake but copied and animation imitations and just mirrored pictures we just invested in one like I think you're talking about optic yeah I've seen a number of will make their life more difficult because imagine the same the same AI trying to find fakes and copies and the other AI creating creating them it's the same with deep fakes there's like there there's there's a lot of companies doing really good deep fakes there's a company that was raising money recently we haven't invested in them but I think the idea is amazing they they just made a TV ad with Bruce Willis who I like want to remind everybody no longer like is filming anything like he's not he's not acting anymore he's retired but they just got assigned they got him to sign off on using his image and they created an incredibly good looking and Incredibly real looking deep fake of Bruce Willis and they they made like a TV ad with that but at the same time there's a there's a company we looked at that why come later that is battling with dip fakes because they want to be be able to recognize it so you know nobody releases a deep fake of you saying that yes I want to give all of my property to this amazing person who who just like emailed me from

from a basement in Bulgaria yeah what actually terrifies me is that I really I really read that number s and received them in the history that even if you have arguments and proofs saying that this is fake that the job is already done some people will see it some people will believe it and that's that terrifies me that is scary we live in a very scary world of post truth so we need to we need more technology to help us figure out how to live right because we're we're technologists we find technology answers to you know problems that don't require technology yeah that's true we need now the decision decision when you can download video and this app will tell you the percentage of possibility that this is real you know something how they discuss the rights with the I don't know stranger things and The Simpsons how they pay them I don't think I don't think they paid them I don't think I don't think they like they're they don't like they basically anything so the Precedence so far is that anything created by AI belongs to the company that owns the AI I mean like if you explicitly want a Homer Simpson image which is a copyright and stranger things which is a corporate that kind of puts you in a weird position but we already seen this with user generated content content so ugc companies like YouTube for example the way they work with the way law works with them is that they cannot possibly control what people upload so they just you know they they swear that they will take action if an actual copyright owner will come in and say like and submit a strike so this is called Digital

Millennium protection act it basically tells you that all you need to do is as soon as you receive like a seasoned this letter or a strike from the copyright owner then you take the content down I think this is what openai can do the problem becomes like if what if what if I make t-shirts with this and sell it what if I sell a million t-shirts like who's responsible that's a lot of questions but still exciting right we didn't have anything like this before all we had was Prisma which would like repaint your photos in an style of a famous painter or like any other style here you can just like imagine stuff you haven't ever like ever seen you can say I want Sasha and his Lovin painted by boss one more use case that is just immediate like imagine you need to make a marketing material like an image for your presentation for your website you don't have to buy an image you don't have to search for it you don't have to how many hours have like I spent looking for that you know image that would look good inside my website crazy I just like created and I don't have to buy it there's like no actual model I have to like get rights from I have to pay my startup got sued ones by a photographer because we used the image of me for God's sake there like they like we we use the image of me that one photographer created and like he still owned the rights we we didn't knew we didn't know about that because we use that for an article and the journal like a magazine his has not acquired the full rights it was a

long story but like it was it cost us like 20 000 bucks or something when a lot of a lot of headache yeah it was like not fun not fun it's it's a shitty photographer and a shitty person but for this let's wrap it up who wants to go next who's who has exciting news I'm just thinking maybe we could rip it up everything everything oh yeah I have another crazy crazy news so guys it's really important it's a really big birthday it's it's an anniversary it's the Curiosity Rover on Mars turns 10. oh 10 years it was initially just they sent it for just two years but the robot was so good it's still alive so the marketing campaign by Husqvarna the LOL malware company you know the fancy alone mowers that look like racing cars so they are making all of their lawnmowers in the world seeing a happy birthday song for this Curiosity Rover isn't that cute yeah I think that this is very good marketing campaign Highway speech from the Boston Dynamics or dancing or something like that so sure because it's 10 years that's an old robot they should make his wife you know which is waiting him like but he will not return maybe someone will go there and plant some potatoes that's a good idea we should definitely send some astronauts to Mars so yes so they can ship the Curiosity Rover back to Earth and they can stay on Mars who cares about people