Top investors emphasize the importance of deep diligence, diversified investment across the AI ecosystem, and focusing on companies with real business momentum to distinguish genuine AI opportunities from hype. They also highlight the need for responsible governance, collaboration, and public-private partnerships to address societal impacts and ensure equitable access as AI continues to evolve rapidly.
The panel discussion, featuring top investors Song-Yi Yoon, Eric Wilmers, and Mike Anders, moderated by Katherine Schwab, centers on discerning genuine AI investment opportunities amid the current hype in Silicon Valley. They begin by examining Anthropic, a leading AI company valued at $9.65 billion and preparing to go public. Mike Anders shares Iconic Capital’s journey with Anthropic, initially passing on investment in 2023 due to negative operating margins but returning in 2025 after the company demonstrated strong growth and positive margins. He emphasizes the importance of deep diligence to differentiate between experimental and recurring revenue, highlighting Anthropic’s embedded customer traction as a key signal of its potential.
Eric Wilmers from GIC discusses their diversified investment approach to AI, viewing it as a foundational technology rather than just transformational. GIC invests across the AI ecosystem—from infrastructure and chip companies to AI builders like Anthropic—focusing on companies that show real business momentum and deliver tangible ROI for users. Despite high valuations, GIC’s confidence stems from Anthropic’s growth, values, and impact. Wilmers also stresses the importance of compute access and supply chain in AI success, noting GIC’s active role in supporting portfolio companies through events and partnerships to enhance adoption and implementation.
Song-Yi Yoon, an early-stage investor, addresses the trend of “Neolabs”—early AI startups often without products or revenue but backed by venture capital. She compares these to historic research labs like Bell Labs, noting the challenge of venture funds’ time-bound expectations versus the patient capital needed for breakthrough research. Yoon highlights the cyclical nature of AI, with periods of hype and disappointment, but acknowledges the current cycle’s strength due to the convergence of capital, talent, compute, and data. Her fund focuses on companies building core infrastructure and data flywheels that can sustain competitive advantage amid ongoing innovation.
The discussion also touches on the rapid pace of AI valuation increases and market activity, with Mike Anders cautioning investors to remain grounded by conducting thorough customer and revenue diligence. He notes that while several large AI platforms will emerge as winners, vertical AI companies solving real business problems can also capture significant market share. Eric Wilmers adds that compute supply chains are critical, and companies that can secure differentiated products alongside robust upstream and downstream ecosystems are better positioned for success. GIC’s long-term presence in San Francisco helps them maintain close relationships and insights into these dynamics.
Finally, the panel addresses the growing public concern and regulatory scrutiny surrounding AI, acknowledging a disconnect between AI builders and the general public. They discuss the need for responsible governance, collaboration among industry leaders, and public-private partnerships to manage AI’s societal impact, including job displacement and education. Mike Anders mentions philanthropic efforts like Iconic Impact to support AI for good, while Song-Yi Yoon highlights challenges such as rising memory prices affecting consumers and the importance of policies to support retraining and equitable access. The conversation concludes with a call for thoughtful engagement to harness AI’s benefits while mitigating risks.