An OpenAI researcher turned venture capitalist says investors are 3 to 5 years behind the latest AI studies (www.businessinsider.com)

Jenny Xiao, a former OpenAI researcher and co-founder of Leonis Capital, has highlighted a significant disconnect between the rapid advancements in AI research and the investment landscape, claiming that investors are 3 to 5 years behind the latest studies. Speaking on a Fortune Magazine podcast, Xiao emphasized the importance of recognizing the nonlinear progress of AI, urging venture capitalists to adapt to the fast-paced technological shifts that characterize the field. She believes that a new generation of founders and investors is necessary, as traditional investment strategies that worked for established sectors like SaaS are inadequate for the evolving nature of AI. Xiao's insights underline the urgent need for investors to deepen their technical understanding of AI, as the technology advances in "lumps" rather than at a steady pace. This perspective challenges conventional wisdom about the predictability of AI's progress, suggesting that investors should focus on understanding the complexities and dynamics of this rapidly advancing field. By bridging the gap between venture capital and cutting-edge AI research, Xiao aims to foster a more informed investment approach that aligns closely with the current technical frontier.