"Megalomaniacian" and "the most dishonest person in the tech world"? Silicon Valley venture capital privately complained about Ultraman

Highlights:

• 1

  OpenAI is pushing for funding at a $100 billion valuation, while Altman is poised to build artificial general intelligence (AGI).

• 2

  Many VCs began to suspect Altman's self-mythical behavior, calling him a "megalomaniac," a "charlatan," and "the most dishonest man in tech."

• 3

  Although VCs privately disparage Ultraman, most avoid public criticism so as not to be left out in the next funding round.

Tencent Technology News reported on March 27 that according to foreign media reports, start-ups usually carefully arrange a series of meetings when seeking huge financial support, contact major venture capital companies one by one, and hire intermediaries to carry out nuanced promotions. However, when OpenAI sought $300 million in funding from investors at the end of 2023, its CEO, Sam Altman, chose a different strategy.

At that time, Altman gathered top venture capital firms, including Sequoia Capital, Lightspeed, and NEA, to propose an "either/or" proposal through a group video call, and encouraged them to start an in-depth discussion on their own.

One of the venture partners' firms, which had previously invested in Altman, also participated in the video conference. When they find themselves sitting at the same virtual table as their strongest competitors, they almost wonder if they've strayed into another meeting.

"I was like, 'This is just a dream,'" the investor recalled. What's more, the financing conditions on the table are also very special, with every investor having the opportunity to invest at a valuation of $29 billion, but the return rate is capped at 3 times and is non-negotiable. Altman said that such a structure is designed to ensure that OpenAI is protected from undue outside influence, so that it can pursue the well-being of humanity more freely.

"I was like, 'This is incredible, give me another chance.'" The partner admitted. "Ultraman always likes to act so selfless, but I'd rather he tell me his true intentions directly. The VC was disappointed with the deal structure, which made them uneasy with the upper limit on profits and no floor protection. Still, they've seen competitors rush to write checks to OpenAI, even those investors who have had a negative view of Ultraman in the past.

"The Most Dishonest Man in Tech" VS "The King"

This is one of many stories collected by BI, a mainstream online technology media in the United States, during a recent interview in Silicon Valley. In this peculiar world of high-end clubs, $7-plus coffee, and craft cocktails, the meteoric rise of OpenAI and Ultraman is triggering an inevitable backlash.

"He's definitely one of the most dishonest people in tech," said another venture capitalist who has had deep contact with Altman and co-invested with him. "I've met him a lot of times, but every time he says something I feel, 'How can this be true?' and yet he's always been able to get through it skillfully. ”

In Silicon Valley, a notoriously fast-changing place, VCs are always keen to chase the hottest deals. However, when an investment fails, they sometimes get upset and quietly discredit the startup founders behind their backs who reject their proposals. And this frustration tends to become more intense when a startup is hugely successful.

Today, in Silicon Valley, the growing discontent with Ultraman has become apparent. As OpenAI prepares for a $100 billion funding round, its AI revolution is advancing at a breakneck pace. This has led VCs to denigrate him privately more than ever, although most still avoid directly criticizing him in public, and even many investors interviewed have asked to remain anonymous. After all, no one wants to be knocked out of the next funding round, even if Altman once again pitches his vision to a group of investors via video.

An angel investor who knows Altman as a Silicon Valley startup founder commented, "He's like a king. If you don't get involved in what he's doing, there's a deep sense of fear. ”

"Sam's Platform" & "Reality Bending Field"

Among the many depictions of Ultraman, one sees him as a benevolent dreamer, a thoughtful technological navigator with a bright future. They firmly believe that Ultraman's grand plan to build an AI empire that encompasses everything from nuclear fusion to anti-aging technology will lead humanity to a whole new level.

However, there are also those who hold a different view, arguing that Ultraman's passion for self-promotion far outweighs his pursuit of human progress. In the eyes of many, he is like a master storyteller who can successfully sell sand in the Sahara Desert, and he is eloquent and good at persuading others. However, when Altman presented a comprehensive vision of social transformation, not all of Silicon Valley's elites were moved.

Ali Ghodsi, chief executive of Databricks, a cloud data processing and machine learning platform, is wary of Altman's multi-trillion-dollar artificial general intelligence initiative. In his view, although artificial general intelligence can enable machines to surpass humans in many tasks with economic value, it is too exaggerated to see it as a supernatural force, even a "god-like" existence.

"If you believe in a worldview that as long as you have general artificial intelligence, you can't do anything, and you can even move the whole planet," Gordisi explained. But I don't think that's happening. ”

Many also mention Ultraman's "reality-bending force field," a trait similar to that of Apple co-founder Steve Jobs, who seems to be able to turn dreams into reality through charisma and unwavering convictions.

A startup founder said: "Altman is building his own Sam's platform, which is why his personal project can get the same amount of investment as a public company. At the same time, the founder was skeptical about Altman downplaying the financial aspects of OpenAI's work when it ran a personal investment fund within OpenAI.

Ultraman became a symbol of high valuation

Although Sam Altman's name has only recently become known, his name has been the talk of the town in tech circles for years, even if it hasn't always been a topic of praise.

Loopt, the social networking app built by Ultraman himself, made it easy for friends to share each other's locations. However, in 2012, Ultraman decided to sell it. Two years later, he was appointed head of the legendary startup incubator Y Combinator, but it didn't last long, and he was eventually fired due to insider trading issues.

Paul Graham, the co-founder of Y Combinator, is rumored to have flown from the UK to San Francisco to personally handle the tricky matter, sacking his erstwhile subordinate, his handpicked successor. During Altman's tenure, there were concerns that he would put his interests ahead of the company, and even made personal investments in Y Combinator-funded projects through another fund he co-managed with his brother Jack, a behavior that raised widespread skepticism.

One startup founder said: "This guy's resume is not impeccable, but he always finds the right way to get the most out of his pieces." Now, he is madly involved in the field of artificial intelligence and has become a high-profile expert. ”

In that multi-person video call in 2023, a venture capital partner indignantly added, "The Ultraman brothers are always hyped up, and people always say, 'Oh, look at the Ultraman brothers,' as if any project would be overvalued just because of who they are." ”

"Alexander the Great in AI" > "Charlatans"

In the process of talking with BI, many venture capitalists expressed a consensus that Ultraman does have a special temperament. He is adept at pitching his vision and is able to identify and motivate talent. Without sufficient skills and understanding, it is impossible to run the world's most important AI startup, and Ultraman clearly has these qualifications.

However, for some investors, Ultraman's habit of self-mythologization and his strong need to be the "protagonist" became a stumbling block to trading.

"He's a megalomaniac," said one venture capitalist who has worked with Altman and been involved in similar deals, "and I don't trust Elon Musk for the same reason." I just don't trust people who are so clear about their ambitions, and they tend to overlook the risks and challenges of reality. ”

Just as common as the complaints about Ultraman's self-aggrandizement are the various theories about him. Some think he's just a lovable charlatan, similar to Adam Neumann, the former CEO of WeWork. Others believe that he aspires more power, greater influence, and may even be a true believer, convinced that he can lead a messianic revolution.

"Altman always said that this was his mission, that he would lead humanity through the greatest revolution ever," revealed one of the venture capital partners involved in that multi-person video call in 2023, "and for him, it was almost like a religious belief, and he believed in it." ”

Some people who know Ultraman even say that his ambition is to become "Alexander the Great in the field of artificial intelligence." Known for his military prowess, the ancient Greek emperor built a vast empire but unexpectedly died of fever at the age of 32, and his empire subsequently collapsed in war and chaos.

It is still unknown where Ultraman's nascent empire will go. (Compiler/Golden Deer)

Disclaimer: This article is reported by foreign media and does not represent the position of Tencent Technology.