AI wave is almost a tsunami: Kanwal Rekhi says wealth creation has gone nuclear
Having witnessed every major technology cycle since the birth of Silicon Valley, the Inventus Capital Partners co-founder says artificial intelligence is creating a self-reinforcing cycle of innovation, capital and unprecedented wealth generation.
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Veteran Silicon Valley investor Kanwal Rekhi believes the artificial intelligence revolution represents the culmination of decades of technological progress and is creating wealth on an unprecedented scale.
Speaking exclusively to CNBC-TV18, the Inventus Capital Partners managing director & co-founder described AI as a transformational force that is bigger than previous technology shifts and said the trend is only accelerating.
Rekhi, who arrived in California in 1971, said he had witnessed every major technology transition over the last five decades, from the early semiconductor industry to personal computers, networking, software, the internet, mobile technology and social media.
According to him, each phase built on the previous one, but AI has emerged as the final culmination because computing power, memory and bandwidth have become abundant and inexpensive.
“Every new thing builds upon what was there before. But AI is the final culmination of all that,” he said.
Rekhi compared technological progress to surfing, where each successive wave becomes bigger than the previous one.
He pointed to AI startup Anthropic as an example of the wealth being generated. The company, he said, generated $10 billion in quarterly revenue with only around 3,000 employees, translating into millions of dollars in revenue per employee.
“Technology is producing value, which is translating into wealth for a large number of people. Every employee at Anthropic is becoming a multimillionaire,” he said.
Rekhi also highlighted SpaceX, whose valuation has climbed sharply, as another example of wealth creation driven by technology.
“SpaceX is the same thing. Wealth creation is happening on a massive scale, and that feeds back. Now there's wealth available to take higher risks and invest in more far-out ideas,” he said.
Describing the process as self-reinforcing, Rekhi said innovation and capital are creating a cycle that continues to fuel bigger ambitions.
“This has gone nuclear. It's a self-sustaining nuclear reaction,” he added.
The 81-year-old investor said the pace of technological disruption means businesses and investors can no longer rely on old assumptions, as new technologies are rapidly replacing existing models and creating entirely new opportunities.
Speaking exclusively to CNBC-TV18, the Inventus Capital Partners managing director & co-founder described AI as a transformational force that is bigger than previous technology shifts and said the trend is only accelerating.
“It's a massive wave, and it's not going to stop. It's not going to slow down,” Rekhi said. “This AI wave is almost a tsunami.”
Rekhi, who arrived in California in 1971, said he had witnessed every major technology transition over the last five decades, from the early semiconductor industry to personal computers, networking, software, the internet, mobile technology and social media.
According to him, each phase built on the previous one, but AI has emerged as the final culmination because computing power, memory and bandwidth have become abundant and inexpensive.
“Every new thing builds upon what was there before. But AI is the final culmination of all that,” he said.
Rekhi compared technological progress to surfing, where each successive wave becomes bigger than the previous one.
He pointed to AI startup Anthropic as an example of the wealth being generated. The company, he said, generated $10 billion in quarterly revenue with only around 3,000 employees, translating into millions of dollars in revenue per employee.
“Technology is producing value, which is translating into wealth for a large number of people. Every employee at Anthropic is becoming a multimillionaire,” he said.
Rekhi also highlighted SpaceX, whose valuation has climbed sharply, as another example of wealth creation driven by technology.
“SpaceX is the same thing. Wealth creation is happening on a massive scale, and that feeds back. Now there's wealth available to take higher risks and invest in more far-out ideas,” he said.
Describing the process as self-reinforcing, Rekhi said innovation and capital are creating a cycle that continues to fuel bigger ambitions.
“This has gone nuclear. It's a self-sustaining nuclear reaction,” he added.
The 81-year-old investor said the pace of technological disruption means businesses and investors can no longer rely on old assumptions, as new technologies are rapidly replacing existing models and creating entirely new opportunities.
(Edited by : Prashant)
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