Jared Kushner: BrainCo, Affinity Partners, and the Geopolitics of AI
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this compelling episode of No Priors, Jared Kushner discusses his investment firm Affinity Partners, the AI implementation company Brainco, and his transformative experience in government diplomacy. (00:35) Kushner explains how his unique approach to investing focuses on being "complex problem solvers" who provide value-added partnerships rather than traditional private equity investments. The conversation covers his global investment perspective, from Albania to the Middle East, and how his diplomatic experience informs his business decisions. (13:12) A significant portion discusses Brainco, the AI company he co-founded with Elad Gil, Eric Wu, and Luis Soto, which works with major institutions to implement practical AI solutions. (32:52) Kushner also reflects on his diplomatic achievements, particularly the Abraham Accords, and provides insights into Middle Eastern geopolitics and investment opportunities.
- Main Theme: How cross-border perspectives and relationship-building can create unprecedented business and diplomatic opportunities in an AI-driven world
Speakers
Jared Kushner
Jared Kushner is the founder and CEO of Affinity Partners, a global investment firm. He previously served as Senior Advisor to President Trump, where he played a key role in Middle East diplomacy and was instrumental in brokering the Abraham Accords peace agreements. Before government service, he ran his family's real estate business and has extensive experience in deal-making and complex problem solving across multiple sectors and geographies.
Sarah Guo
Sarah Guo is co-host of No Priors and a prominent investor in AI and technology companies. She has extensive experience in venture capital and is known for her insights into emerging technology trends and their business applications.
Elad Gil
Elad Gil is co-host of No Priors and a well-respected investor and advisor in Silicon Valley, particularly in the AI space. He has been involved in early investments in many successful AI companies and is co-founder of Brainco alongside Kushner. His expertise spans both venture capital and hands-on company building in the technology sector.
Key Takeaways
Global Perspective Creates Investment Alpha
Kushner emphasizes that most successful people are focused on either an industry or geography, but lack global perspective. (02:15) By having a "real global perspective," investors can see how similar businesses operate differently across regions and connect entrepreneurs who might benefit from cross-pollination of ideas. This approach led to investments in diverse markets like Albania, where Kushner saw potential that others missed due to reputational bias rather than fundamental analysis. (06:27) The key insight is that while there are tens of thousands of efficiently priced companies, there are only 200+ countries that remain "very inefficient," creating significant arbitrage opportunities for those who understand governance and macro trends.
Government Partnership Requires Private Sector Excellence
Kushner's framework for evaluating countries centers on whether governments set the right policy while recognizing their limitations. (05:52) For successful public-private partnerships, the private sector must bring four critical elements: expertise, technical capability, project management skills, and capital, plus local navigation abilities. If you're missing any of these components, "it's a recipe for disaster." This framework helped him identify investment opportunities in places like Albania, where strong governance created an environment conducive to private investment, despite the country's reputation.
AI Implementation Success Requires Institutional Readiness
Through Brainco's work with major institutions, Kushner identified three critical success factors for AI implementation. (24:52) First, organizations must have complex problems where AI can create significant efficiency gains. Second, they need the right data to fuel AI solutions. Third, and most importantly, they require proper "command and control structure" where leadership is willing to force adoption despite resistance to change. Kushner notes that initially resistant employees often become the biggest champions once they see how AI enhances rather than threatens their work.
First Principles Diplomacy Breaks Conventional Wisdom
Kushner's diplomatic success came from rejecting conventional wisdom and applying first principles thinking. (36:20) Rather than following the traditional approach that failed for decades, he asked "what would you do if you were us" and studied failures to understand why they occurred. The breakthrough came from getting parties to focus on "defined end states" and sitting "on the same side of the table" rather than across from each other. This approach led to multiple historic agreements including Israel-UAE, Bahrain, Sudan, and Morocco joining the Abraham Accords, plus resolving the GCC dispute.
Cross-Border Business Relationships Prove Peace Dividends
Kushner's investment in Phoenix Holdings, Israel's largest financial institution, demonstrates how business relationships can validate diplomatic progress. (44:53) Despite investing during wartime in July before the Hezbollah conflict, the investment returned almost 9x in just over a year, moving from $37 to nearly $120 per share. This success convinced Middle Eastern investors of the benefits of Israeli partnerships, and now Phoenix is exploring investments in Saudi Arabia and UAE, creating a virtuous cycle where "when you get an Arab and Israeli together talking about business opportunity, they forget about everything else."
Statistics & Facts
- The US has about 1,300 gigawatts of energy capacity currently, but there are approximately 2,000 gigawatts of energy projects waiting for permits from FERC, showing massive private sector interest that's bottlenecked by regulatory approval. (28:35)
- Brainco successfully achieved over 90% accuracy on 35 out of 40+ steps in a construction permitting process, reducing approval time from 3-4 months to just 3 minutes while helping the government eliminate over 10 unnecessary steps. (20:00)
- Kushner's investment in Phoenix Holdings generated almost a 9x return in just over one year, with shares rising from $37 to nearly $120, demonstrating the potential returns from investing in undervalued markets during perceived instability. (45:31)
