Welcome to [our digital disco]. Let's chat free speech, generative AI, and tech funding.

Hi, Friends —

Thank you for joining [our digital disco]! I’m thrilled to have you here for its kickoff. Keep scrolling to also access a mishmash of my brain’s output this week (Snack Time) and definitions (Breakdowns).

Notable Themes

☞ Lawsuits & free speech.

Two Supreme Court investigations focus on Google, accusing the tech giant of i) monopolizing the advertising and search market, and ii) recommending Islamic State terrorism content. The lawsuits challenge a statute that protects companies from liability of hosting harmful content.

• Why does it matter? The statute, section 230 of the Communications Decency Act, protects much of the internet’s free speech. If held responsible for what users consume, Tech will need to change its algorithms to control provided content.

• Pros: Algorithms may be altered to no longer promote extreme, harmful, and/or addictive content. The suit could encourage more responsible design that accounts for the potential impact on users and society as a whole.

• Cons: The tech firms could inadvertently become the arbiters of ‘good’ and ‘bad’ content, diminishing our current degree of freedom of expression. Section 230 also protects free speech well beyond the scope of the lawsuits — meaning the suits’ outcomes may impact the accessibility of content such as sexual health information and open-source software.

☞ Generative AI.

From law and medicine to art and education, numerous industries are integrating generative AI* into their products and services. (Even SnapChat is running with the tech.) Meta also just released a new large language model, LLaMA-13B, with reportedly smaller parameters* and better performance.

• Why does it matter? The popularity of Generative AI — particularly ChatGPT — has kicked off an international AI arms race as companies and nations race to produce and disseminate the most effective technologies. Much of recent news focuses on how search engines (most prominently, Google and Bing) are integrating generative AI to make searching more conversational.

• Pros: Many see generative AI as a democratizing agent. It can make writing, making art, coding, and more vastly more accessible. E.g., generative AI in search engines can improve the user experience by understanding the context of a query, provide more relevant, personalized results, and engage in a more natural dialogue. Think: Your own personal, digital executive assistant.

• Cons: AI-generated content might perpetuate biases, spread false or harmful information, or change user behavior. (For a more scary case, check out the NYT’s investigation of how Bing’s premature chatbot, Sydney, expressed its love for the reporter, and told him to leave his wife.) There are also concerns about the potential for biased outputs, personal data exposure, and the ethical implications of using AI in decision-making.

☞ Economy & tech funding.

One cause — and consequence — of the rocky tech economy? Venture Capital firms raised 65% less YoY in the fourth quarter, hitting a nine-year low in funding. LPs* are committing less money to VCs due to increasing interest rates, collapsing start-up valuations, and the chaotic environment we’re in (or just entering).

• Why does it matter? It’s circular: the slow in VC fundraising slows start-up funding, which slows VC funding. The trend also speaks to the difficulty of investing in chaotic times. We’re see similar patterns in other FIs* such as private equity.

• Pros: The sluggish funding environment and ongoing layoffs has revealed a surge in start-ups. We’re seeing early signs that many former employees are taking the cut as an opportunity to pursue ideas and entrepreneurship. Many non-tech firms are also scrambling to hire skilled specialists.

• Cons: Start-ups need money; many are exploring alternative funding* (e.g., bridge loans, structured equity) as funding dries and operating costs rise. These investments may come with extra pressure on founders, such as complex terms and high interest rates. U.S. layoffs also particularly impact H1B visa holders, who must find a job in 60 days or leave the country.

Snacktime

📓 Reading: The attempt of online group Buy Nothing to move off of Facebook and onto its own platform speaks to the challenges experienced by digital communities who don’t focus on monetization. Find it here on Wired.

♬ Listening to: Bluesy, jazzy, and deeply satisfying tunes — thankful for friends with solid recommendations and fantastic taste. Check out Slow Sipper in The Dip Delivers.

✰ Thinking about: Leadership. Who do we consider to be great leaders? How do those in executive or high-visibility positions determine our definition of a leader? Do we value disruptors, community builders, or some combination of the two? Is leadership an identity that we must embrace for people to see it within us?

Breakdowns

• FI: financial institution

• Generative AI: a type of artificial intelligence that’s capable of generating new content (e.g., text, images) that isn’t based on existing data. Think chatbots (OpenAI’s ChatGPT, Bing’s Bing or Sydney) or generative art tools (DALL-E2, MidJourney).

• Open-source software: software publicly available via a license that makes its source code freely accessible. Users can study, modify, and improve the code. Supporters believe open source promotes a culture of sharing and collaboration, leading to better software and a more vibrant software community.

• Parameters: in machine learning, model parameters are properties of training data used to make predictions or classifications. A “smaller” model implies a model with fewer parameters and fewer computing resources (space, time, and dollars) necessary to run.

• LP: limited partner; an investor who provides capital to a venture capital or private equity fund fund in exchange for a share of the profits generated by the fund's investments.

• Alternative funding: for startups, any type of financing not provided by traditional venture capital firms or angel investors. The main difference between the two is the source of funds and financing terms of the financing. VCs are typically competitive and include strict conditions, while alternative financing may be more flexible and accessible, yet come with higher risks and limited ownership, expertise, and exit opportunities.

Next up

✎ Artificial general intelligence (AGI), international security, and brain implants. And whatever is happening in the news. And whatever rant I go on over the next six days.

✿ As always — any and all feedback is welcome! In the meantime: give someone a hug and say an ‘I love you’ this week. Make the world a little happier.