by Sai Krishna V K on 22 Jan, 2024
News
Automation
Spatialization
Decentralization
The year 2024 stands as a watershed moment in this trifecta, characterized by three primary dynamics: Generative AI, Apple Vision Pro and zero knowledge cryptography.
Generative AI and Open Source: e/acc the potato farm
Open source, once a niche concept, has become integral to software development, especially in for Generative AI.
Current Landscape: Open Source and AI Integration
In the last decade, open-source has seen unprecedented growth, particularly in AI. Hundreds of AI-focused open source companies have emerged, attracting significant investment and leading to substantial IPOs and acquisitions.
Generative AI: A New Frontier in Open Source
Generative AI is redefining open-source software development. The technology's ability to create content and automate tasks is pushing open-source beyond traditional domains into more creative and complex applications.
Evolution of Open Source in AI
Open Source 0.0 – The Initial Phase: In the 70s, open source began as free software among academics. With the internet's advent, collaboration flourished, laying the groundwork for AI integration in open source.
Open Source 1.0 – Support and Services: The introduction of Linux marked open source's enterprise importance. By the late '90s, the first economic models emerged, adapting to support AI-driven open source initiatives.
Open Source 2.0 – SaaS and AI Integration: The mid-2000s witnessed a shift towards cloud computing and SaaS models, crucial for hosting AI-based open-source solutions. This era marked the beginning of open-source software achieving parity with proprietary systems in AI applications.
Open-source thrives on its community-driven model, which is particularly advantageous for Generative AI. The synergy between open-source methodologies and AI innovation results in faster development cycles, diverse input, and more robust AI models.
At Spuddish, our investment into AI companies revolves around building AI-Centric Open Source Businesses
Project-Community Alignment: Crucial for AI projects where community contributions enhance the model's effectiveness and diversity.
Product-Market Fit: Indicates the adoption of AI tools, measured by user engagement and application of AI solutions.
Value-Market Fit: Focuses on monetizing AI innovations while offering tangible benefits, gauged by revenue and market penetration.
The trajectory of open source is increasingly intertwined with AI. As AI continues to advance, open source will play a pivotal role in its democratization and innovation. The future landscape of open source in AI is set to expand, offering vast possibilities for technological advancement and creative solutions.
2. Spatialization: Emergence of Spatial Computing as Core Technology
Envision an ecosystem where spatial computers are the primary interface devices. This is rapidly transitioning from speculative fiction to impending reality. The objective is to significantly enhance the interaction between users and devices, thereby revolutionizing our digital interfaces. Spatial computing represents not merely a technological advancement but a fundamental paradigm shift, comparable to the transition from basic mechanical tools to advanced precision machinery.
Machine learning generated content is just the next step beyond TikTok: instead of pulling content from anywhere on the network, Diffusion models and other image, 3D LLM models generate new content from content, at zero marginal cost. This is how the economics of the metaverse will ultimately make sense: virtual worlds needs virtual content created at virtually zero cost, fully customizable to the individual. This is fast approaching a reality. This makes the second pillar of spatial computing a key step to unlocking a post-smartphone world.
Apple's unveiling of Vision at WWDC 2023 wasn't just a product launch; it was a declaration of intent. The name itself speaks volumes: a vision for the future, a tool for enhancing our present, and a subtle critique of the tech landscape we inhabit.
What truly will surprise the world is how Apple transcended both hardware and experience limitations. Vision isn't just VR or AR; it's a seamless blend, a "mixed reality" that feels so natural, so intuitive, it's hard to imagine any other approach to computerized glasses.
VR that Feels Like AR: The Magic of Blending Realities
For years, the team at Spuddish has emphasized the distinction between VR and AR. VR immerses you in a completely virtual world, while AR overlays digital elements onto your existing reality. But Vision defies these categories, in ways that reminds us of the iPhone when it was first launched.
Technically, it's a VR headset, but the experience is pure AR. You see your surroundings with astonishing clarity, augmented by digital elements that seamlessly integrate into your field of view. It's like wearing high-tech safety goggles that enhance, not replace, your perception of the world. This is pretty magical, and will unlock a new wave of opportunity for software to superimpose onto the real world.
While the technical marvels of Vision are impressive, its true potential lies in its impact on how we interact with the world and each other. Apple Vision isn't just a product; it's a Ski Google to skate to a new era of computing. It's a glimpse into a future where the boundaries between physical and digital blur, and our interactions with technology become more seamless and immersive than ever before.
Vision is a powerful tool, and like any powerful tool, it's crucial to use it responsibly and thoughtfully. As we navigate this exciting new frontier, added to it is the human element, the importance of real-world connection, and the considerations that come with reshaping our reality.
3. Decentralization: Transformation of Internet's Economic Model
Decentralization is the third pillar, where the robustness of blockchain technology and privacy-enhancing mechanisms are leveraged. This extends beyond the creation of new digital assets or collectibles. It is about forging a more equitable internet infrastructure, one where value is appropriately distributed to creators and participants. This involves establishing trustless systems that are as reliable and indispensable as foundational elements in a critical infrastructure.
In the evolving narrative of decentralization, the distinction between Layer 1 and Layer 2 solutions is paramount. Layer 1s, the bedrock of blockchain infrastructure, include blockchains like Ethereum and Bitcoin. They are the foundational protocols upon which decentralization builds. Layer 2s, on the other hand, are innovation layers built atop these bedrocks, designed to scale throughput and reduce costs, crucial for real-world applications.
The essence of decentralization lies in its potential to redefine the internet's value layer. In this new paradigm, protocols become the primary architects of value, dictating how data is created, shared, and monetized. This shift signifies a departure from the traditional, centralized models dominated by a few entities towards a more democratized and equitable ecosystem.
Interoperability (Interop) between chains and aggregation layers will play a critical role in this transformation. As the blockchain space evolves, the ability for different Layer 1 and Layer 2 solutions to interact seamlessly will not only ensure the flow of value across the ecosystem but also enhance user experiences, making decentralized applications more accessible and functional.
The transition towards a post-cloud era is marked by the emergence of trustless state machines. These systems operate without the need for a central authority, ensuring data integrity and security through consensus mechanisms. This shift is indicative of a broader move away from centralized cloud services towards decentralized infrastructure, where trust is built into the protocol itself, rather than being reliant on the reputation of a service provider.
Zero-knowledge cryptography at scale is the linchpin in unlocking the full potential of this decentralization. This cryptographic method allows one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself. When applied at scale, it enables the creation of privacy-preserving transactions and interactions, further reinforcing the security and integrity of decentralized networks.
The journey towards a decentralized internet is not merely about the transition from centralized to decentralized networks. It is about reimagining the internet’s economic model through the lens of blockchain technology. This involves leveraging Layer 1 and Layer 2 solutions, fostering interoperability, transitioning to post-cloud trustless state machines, and utilizing zero-knowledge cryptography at scale. Together, these elements forge a new path towards an internet infrastructure that is equitable, secure, and truly decentralized.
Spuddish Capital: Some tater tots trying to build products for the future
In constructing the foundation of Spuddish Capital, one might ponder the necessity of another deep tech venture studio. The landscape is as diverse as a field of potatoes, yet many seeds never sprout. Our thesis is straightforward: invest in the geniuses when their ideas are no bigger than a spud. It's a hilariously early stage, but as any farmer will tell you, the best yields come from planting deep.
We're not just throwing fertilizer and hoping for the best. Spuddish Capital takes a hands-on approach, co-building products to ensure they break ground faster. In this fast-paced tech environment, speed is of the essence, and our founders are like potato guns—ready to launch at a moment's notice. Our focus on community-led, product-led, and design-led growth levers is about nurturing these ideas, providing the right conditions for them to flourish in a market hungry for innovation.
Writing pre-seed stage checks, we're reminded that potatoes are best grown when planted deep under the soil. This philosophy extends to our investment strategy. By investing deep, we're able to support our startups intensely, ensuring they're well-rooted to face the challenges ahead. In doing so, Spuddish Capital becomes the fertile ground from which groundbreaking technologies can emerge.
The vision for Spuddish Capital is to be the anti-Softbank: a small, scrappy, product-opinionated fund that doesn't just add capital, but truly builds alongside founders. We're creating a new blueprint for venture capital, one that's less about the size of the fund and more about the impact of our collaborations. In the frontier of technology, it's not the biggest potato that wins, but the one that's most nourishing.
So, welcome to the potato farm. With a blend of fun tech and serious commitment to our founders, we're looking to unearth the next big thing in the trinity of code mentioned above. After all, in a field of ordinary potatoes, it's the ones with the most character that stand out.
We dig deep, build fast, and grow the future—one hilariously early founder at a time.
