Ashvin Bachireddy of SV Angel, an early investor in OpenAI and Anthropic, discussed the growth potential of frontier AI and the current state of AI adoption by Japanese companies. The discussion covered regulation, the competitive landscape and decision-making by Japanese companies.
SV Angel partner Ashvin Bachireddy has invested in OpenAI and Anthropic for the past 4 years, emphasizing that both companies are now approaching revenue on the scale of tens of billions of dollars. He said that although they had almost no revenue when he invested, they have grown as frontier AI models continue to train.
Bachireddy pointed to their differing strengths: OpenAI is strong in consumer applications, while Anthropic is strong in business applications, particularly coding. At the same time, he said it is currently difficult to differentiate frontier AI development from competitors, and that the companies will continue to grow by pursuing benchmark performance.
He said the market is not yet saturated, and demand is expected to expand, including among people who do not yet use AI. He also expressed his view as an investor on the significance of AI adoption by Japanese companies and the need to advance the adoption of physical AI.
As a reason Japanese companies should accelerate decision-making, he cited the impact of usage-based pricing for AI, which differs from conventional flat-rate models. He also said it is important to increase the speed of adoption and proceed with operations while learning on the job, emphasizing the opportunity to improve productivity through AI.