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2 Sept 2026 · 1:16:28 This Week in Startups VC experts on why Physical AI funding is heating up | E2333

“Um, but I'm very excited about this possibility of people taking the open source stuff and then um building their own verticalized language models. And I think 11 Labs, Lovable are starting to realize, hey, backing up the Brinks truck and giving tens of millions of dollars, if not hundreds of millions of dollars, to Frontier Labs and then giving those tokens to our users in a wrapper to provide a service is really dangerous.”

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2 Sept 2026 · 1:16:28
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This Week in Startups

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…ists we have a responsibility to think about how to manage that responsibility and I think that um anthropic taking that customer feedback and addressing their policy as it relates to that. Yeah, this is amazing. Um essay by Pachy. Uh is it a step in the right direction? Really just listen to the customer feedback that's happening. You know, there was a famous um blog post from Fred Wilson, Union Square Ventures, formerly Flat Iron Ventures. Uh be your own and uh not growth is a Maybe he did he take it down because people didn't like the term Maybe >> I got to look this up. >> Yeah, we got to find this one because I can't find it right now. I'm doing a quick search for it. And the point of the be your own in the social media era, the social media companies would look at the data of the API companies and they would open an API. So Twitter, Facebook, Facebook very notably, Google, they would open up an API, they let you use it. Then they would look what are the top uses of our API and they would study those uses. And it could be everything as simple as Facebook connect. You let people connect to Facebook, then you add the social graph and they'd say, "Wow, this thing is growing very quickly. I wonder if we should make that part of Facebook. And they did. And so at one point, Fred Wilson wrote a blog post on this and he made a very provocative statement. Hey, be your own Don't be their Be your own Build your own platform. Build your own API. Get out of that. This is the same parallel but with higher stakes because it's not just about the social graph. It's not just about a feature race. It's about the actual intelligence, the actual trade secrets. And I think this is what 11 Labs, Lovable, Figma are all starting to realize. And actually, I think uh Lora, is that the legal uh one? Yeah, Lora, >> I believe Lora announced that they now have their own language model for their kingdom >> and that they've made small vertical language models for Fifoms. So Sherman Sterling and Wilson Cincini and Oric can all have different language models in onrem I believe or on their own cloud. >> I was going to say we're going back to onrem >> back to onrem and one of our big investments advocates we'll throw that on the screen is like literally providing onrem LLMs vertical LLMs and they just raised that incredible valuation that went through our accelerator that's going to be a big hit for us or is a big hit. Uh, a great Yeah. What's great when something works out in this industry when >> it's so lovely. >> It's so lovely. It's like, wow, it worked. We We incubated something and it's successful. >> It's amazing. >> It's a very weird thing. U you know, sometimes I feel like an absolute superhero. I'm like, I can fly. I can touch things and turn to gold. I've got the lantern. I'm Green Lantern. I can do anything. Then all of a sudden, like I take the ring, I put the ring on and I'm like, boom, I can fly. And it's like, yeah, your ring's drained. You nothing's working. The last 10 startups all imploded. Nothing works. You'll never hit another winner. And then it's like, oh, there's another winner. It's possible. Thank the Lord. But >> power law is a beautiful thing. The last 10 startups all imploded. Nothing works. You'll never hit another winner. And then it's like, oh, there's another winner. It's possible. Thank the Lord. But >> power law is a beautiful thing. >> It's a I mean, it really is like a crazy thing. Um, but I'm very excited about this possibility of people taking the open source stuff and then um building their own verticalized language models. And I think 11 Labs, Lovable are starting to realize, hey, backing up the Brinks truck and giving tens of millions of dollars, if not hundreds of millions of dollars, to Frontier Labs and then giving those tokens to our users in a wrapper to provide a service is really dangerous. Like, we're living on the edge here. At any moment, they could rug pull us. Um, all due respect to people building Frontier Labs, but they're going to be under a lot of pressure to make money. And when they get under pressure, this whole like I'm going to be courteous and I'm not going to create an 11 Labs competitor. I'm not going to create, you know, a lovable competitor. It's like that's out the window when your stock is in the uh Yeah. I said that's >> literally I mean when when you get taken to the woodshed, maybe that's a little less graphic. Yeah. When you when you get taken to the woodshed and your stocks like on the floor, which could happen, you know, if they if they don't have >> profits. All right. Listen, another amazing episode of this week in startup/adventure capital roundtable. Paige Dy. Caitlyn, thank you for coming on the program. If founders are watching this saying, I'm going to build the next great company and I would like to have Paige, Caitlyn, and Jal lead my seed round, my series A. How do they reach you? How do they pitch you, Paige? How can founders find you? you. Yeah, you can reach me on my Twitter, which is Paige Finn with three N's or at our website behind Genius.com. >> Behind Genius. >> There it is. >> Such a good name. >> There it is. Behind Genius. I like it. That kind of >> It's like a little bit humble. A little bit of a humble brag, but a mostly humble, but it's a little bit of a humble brag because like we're behind the geniuses. So, but but it's not us. But it's it's good. It's a really good name. >> Thank you, >> Caitlyn. Also a great name. 776. How can people reach you? >> Thanks. Yeah. Um, so similar to Paige, you can find me um either directly on the website here. My my email is uh the letter K776.com. You got to spell it out. Uh we're we're still searching for the the the domain that I can't yet afford um with the numbers. So spell it out. 7776.com. Um, or on on Twitter, uh, Caitlyn Cruz, which is my middle name. People want to know. Um, and uh, C ru is the the last there. So, yeah, would love to hear from you. And Jason, thanks so much for having us on the show. This was really fun. >> And, uh, Aboc has changed their name, so I got to give them a proper shout out here. They're now go.ai. >> There you go. Nice. >> This is when This is incredible. Look at this. >> It's like the Chemical Brothers song. >> Go one in one box. You plug it in. And there's the Ethernet cable going in and AI happens on prem in 15 minutes. s is when This is incredible. Look at this. >> It's like the Chemical Brothers song. >> Go one in one box. You plug it in. And there's the Ethernet cable going in and AI happens on prem in 15 minutes. >> On prem on prem. You own it. Look at that gunmetal steel. Look at that. >> Looks like an Apple product. This a weight list. Maybe Jcal helps you get past the weight list. Go to go.ai. >> Y'all know how to reach me. We see you next time. Bye-bye.…

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