Elad Gil, Jared Kushner & Eric Wu on AI in Business | Brain Co
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This podcast features Elad Gil, a prominent Silicon Valley investor and entrepreneur, discussing his journey from direct investing to incubating companies, including his latest venture Brainco which focuses on enterprise AI adoption. Gil shares insights on market structures, the importance of winning for company culture, and his contrarian views on following passion as career advice. (06:20) The conversation covers his $30 million Series A funding round for Brainco, featuring an impressive roster of investors including Jared Kushner, and explores the challenges large enterprises face in AI implementation.
- Core themes include market dynamics, AI enterprise adoption strategies, and the evolution of technology waves from early skepticism to mainstream acceptance
Speakers
Elad Gil
Elad Gil is a Silicon Valley veteran who has been both an operator and investor in the tech industry. He was involved in early-stage companies and has invested in companies like Brex, Rippling, and Opendoor. Gil is known for his strategic insights into market structures and technology adoption patterns, and recently co-founded Brainco, an AI platform company focused on enterprise and government clients.
Key Takeaways
Winning Creates the Best Company Culture
According to Gil, when founders ask about creating good culture, his answer is simple: winning. (28:26) This isn't about motivational speeches or office perks like kombucha - it's about the fundamental energy that comes from success. When teams are winning, people naturally want to show up and do good work. This creates a positive cycle where success breeds engagement, which leads to more success. The takeaway challenges conventional wisdom about culture-building and suggests that focusing on results and momentum may be more effective than traditional culture initiatives.
Market Structures Follow Predictable Patterns
Gil explains that markets typically collapse into predictable structures: monopolies (like Microsoft OS), oligopolies (like payments with Stripe, PayPal, Adyen), or fragmented markets (like restaurants). (02:49) Understanding these patterns is crucial for entrepreneurs and investors because it helps predict competitive dynamics and business model viability. The key is identifying which structural forces apply to your market - network effects, scale effects, ecosystem effects, or long-term contracts - and building your strategy accordingly.
Technology Adoption Takes Time and Patience
Gil draws parallels between current AI skepticism and historical reactions to the internet, mobile, and SaaS. (14:07) He notes that early mobile banking apps were terrible, but ten years later became incredibly useful with features like check scanning and mobile payments. The MIT study showing 95% of AI pilots failing misses the broader context - it took a decade for mobile to become truly useful, and the same patience is needed for AI adoption. Early pilots and experiments are part of the learning process, not indicators of failure.
Skip the Traditional Customer Progression
Rather than following the typical B2B path of starting with small businesses, then mid-market, then eventually reaching enterprise after 3-7 years, Gil advocates for going straight to the largest customers if you have access and can serve their needs. (08:03) With Brainco, they're targeting Fortune 100 companies directly because they have relationships, understand the needs, and can attract top-tier engineering talent that these organizations normally couldn't access. This approach can dramatically accelerate growth and market position.
Reality Clarity Beats Reality Distortion
Gil shares insight from a friend who worked with Steve Jobs, explaining that Jobs didn't have a "reality distortion field" - he simply saw reality more clearly and communicated it with fewer words in a way that motivated action. (26:54) This clarity of thought and communication is a key trait Gil looks for in founders. Rather than trying to bend reality, successful leaders see situations crisply and articulate them effectively, enabling others to act decisively against that reality.
Statistics & Facts
- The MIT study referenced found that 95% of AI pilots are considered "garbage," but 63% of internally created AI implementations are actually successful. (10:58) Gil questions the methodology and definitions used in this study.
- Brainco raised a $30 million Series A round co-led by Gil and Jared Kushner's Affinity fund, with each putting in half the funding. (16:38)
- Some companies are still using COBOL installations that haven't been touched in 40 years for core payment processing services, illustrating the slow pace of enterprise technology adoption. (15:08)