Amazon’s “Age of Efficiency,” LLM distribution, AI wearable worries, and more with Elad Gil | E2197
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 episode of This Week in Startups, host Jason Calacanis and co-host Alex Wilhelm are joined by legendary investor Elad Gil to discuss the massive job displacement coming from AI and robotics automation. (27:24) The discussion centers around Amazon's internal documents revealing plans to avoid hiring 160,000 people through 2027 thanks to warehouse automation, with Jason noting he predicted this exact scenario just weeks earlier on another podcast. (27:30) The conversation explores broader themes of AI adoption in enterprise, the "age of efficiency" transforming startups, and heated debates around AI regulation between industry leaders.
- Main themes: AI-driven job displacement, enterprise automation adoption, regulatory capture debates in AI, and the future of human-AI interaction through wearables
Speakers
Jason Calacanis
Host of This Week in Startups and founder of Launch, Jason is a prominent angel investor and entrepreneur who has backed companies like Uber, Robinhood, and Thumbtack. He's known for his bold predictions about technology trends and their societal impacts.
Alex Wilhelm
Co-host of This Week in Startups and former TechCrunch editor, Alex brings financial markets expertise and startup analysis to the show. He previously founded a micropayments startup called Contention in the early 2000s.
Elad Gil
Former founder of Mixer Labs and Color Health, Elad is considered one of the most successful solo GPs in venture capital with the largest single AUM globally. He's an early investor in companies like Airbnb, Stripe, and Perplexity, and recently co-founded a new enterprise AI company with Jared Kushner and Eric Wu.
Key Takeaways
Startups Lead AI Adoption Due to Resource Constraints
Jason emphasizes that startups are the first movers in AI adoption because they're resource-constrained and desperate for efficiency. (27:24) Unlike large companies sitting on massive cash reserves with no existential pressure, startups can "turn a nickel into a dollar" with AI tools. This creates a significant competitive advantage for lean organizations willing to embrace automation early. For professionals, this highlights the importance of being in environments that encourage rapid technology adoption and experimentation, as these will be the training grounds for mastery in an AI-driven economy.
AI Companies Are Experiencing Unprecedented Revenue Growth
Elad reveals that multiple AI companies he's invested in are going from zero to hundreds of millions in revenue within 2-3 years - something he hasn't seen "in a very long time." (17:07) This acceleration is driven by AI products being dramatically underpriced relative to the value they create. Jason compares it to getting "three grass-fed hamburgers for $20" - the pricing versus value differential is extraordinary. (18:35) Professionals should recognize this as a massive market opportunity and consider how to position themselves within this growth trajectory.
Job Displacement is Accelerating Across Multiple Sectors
Amazon's internal documents reveal plans to avoid 160,000 hires through 2027 using warehouse automation, with long-term goals of 75% automation. (23:53) Jason predicts that within a decade, no human will touch a package in Amazon's supply chain from factory to doorstep. (28:16) This extends beyond warehouses - Salesforce is saving $100 million annually on automated customer support. The displacement is happening first in outsourced roles, making it less visible but equally impactful. Professionals need to urgently develop skills that complement rather than compete with AI automation.
Enterprise AI Adoption Faces Change Management Challenges
According to Elad, the biggest obstacle to AI adoption isn't the technology itself - which is relatively easy to implement using APIs from OpenAI and Anthropic - but rather change management. (22:07) The real challenge is convincing teams to adopt new tools, aligning incentives, and managing resistance from employees who may perceive AI as threatening their jobs. Successful AI implementation requires a combination of technical expertise, operational management, and people skills to navigate organizational transformation.
The Future of AI Interaction Will Be Multimodal and Personal
The discussion around Sesame's $250 million funding for AI wearables and Jason's insights about Apple's potential AI strategy suggest the future of AI interaction won't be confined to traditional interfaces. (51:00) Companies like Sesame are working on glasses that enable natural conversation with AI agents, while Apple's advantage in on-device processing could enable private, encrypted AI interactions without cloud dependency. (39:58) Professionals should prepare for a world where AI assistance becomes as ubiquitous and personal as smartphones are today.
Statistics & Facts
- Amazon plans to avoid hiring 160,000 people through 2027 thanks to warehouse automation, saving $0.30 per package processed. Through 2033, they expect to save 600,000 total hires with a goal of reaching 75% automation. (23:53)
- Multiple AI companies that Elad has invested in are achieving zero to hundreds of millions in revenue growth within 2-3 years, representing unprecedented scaling velocity in the startup ecosystem. (17:07)
- Tether Holdings now owns $127 billion in US Treasury securities, ranking 18th globally ahead of South Korea, while Circle owns $18 billion, placing crypto companies among the largest holders of US government debt. (62:53)
