TechCrunch Disrupt 2024 highlights

At TechCrunch Disrupt, Dropbox unveiled its cloud storage service for the first time to the public. That was in 2008. Today, in 2024, the company is valued at $8.5 billion. Numerous other startups (including Trello and Yammer) have since made the pilgrimage to downtown San Francisco to take part in the Disrupt "Startup Battlefield". This year was no exception.

Here's our take on the dominant themes and more interesting conference conversations.

AI, AI, AI—and AI regulation…

The most discussed topic at the conference was - of course - yet again AI. This time, however, many of the talks were no longer about the technology itself, but about its regulation. As one of the first speakers, Vinod Khosla, co-founder of Sun Microsystems and renowned venture capitalist, took to the main stage to discuss AI risks and opportunities.

What benefits AI may bring us all

A straight-talking, prescient voice, Vinod advocates for technology to be used with care and compassion and considers himself as a technology possibilist—you might even call him a Techno-Optimist. He states that the dystopian narrative around AI “takes away so much from all the people who stand to benefit.” By contrast, he suggests that a utopian narrative must be advanced to explain what AI could afford us. Phrasing it in terms of how AI will be able to augment human expertise, Vinod concluded: “It doesn't matter whether you're talking about primary care physicians, mental health therapists, oncologists, structural engineers, or accountants—all of it (their services) can be near free”.

(Photo: Kimberly White/Getty Images for TechCrunch; license notice)

Overall, Vinod (pictured above, being interviewed by TechCrunch editor-in-chief Connie Loizos) predicts that AI could increase global GDP growth from 2% to well over 5%, though he gave no timeframe for his prediction. This potential increase would create more than enough abundance to take care of anyone negatively impacted.

Reiterating his views from his recent essay “AI: Dystopia or Utopia?”, he believes AI would let us fundamentally redefine what it means to be human. No longer would people’s existence be defined by the work that they do and must do. He further comments:

Acknowledging the fears of people who might be negatively impacted by AI, Vinod firmly believes that these fears can be countered by the societal choices we make. Agreeing that AI safety should be addressed as there is a risk associated with it, he posited that this ought to be put into perspective as one of many existential risks facing humanity.

Regulating transformative technologies

When new technologies emerge that challenge existing paradigms, such as the internet or, more recently, AI, we tend to immediately think about regulating them, whether out of fear of the new or concern about change. That’s what Martin Casado, general partner at Andreessen Horowitz (also known as a16z), discussed on the Builder’s Stage.

Technology and regulation coexist uneasily, but from Martin’s perspective, the discussion around regulating AI hasn’t paid attention to past examples and is too focused on conjuring up entirely new regulation—as he believed was the case with the State of California’s Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB1047).

The crucial point to consider here is that, first, in order to regulate, you need to know exactly what it is that you want to control. An interesting observation that Martin shared was that California's historic AI safety bill SB1047, flawed though the legislation was, did force the issue of regulation, creating substantial academic dialogue on the topic, something that had previously been lacking. He then cited a proposal titled ”A Path for Science and Evidence-based AI Policy” by Dr. Li Fei-Fei and Dawn Song, Professor in the Department of Electrical Engineering and Computer Science at University of California, Berkeley, and others, looking at marginal risk for AI. If we are to regulate, then the authors argue that it should be evidence-based regulation with a solid understanding of marginal risk at its center.

In his panel, Martin of a16z stressed the importance of academic experts being part of the dialogue and listening to those voices. If they’re saying that something is going to be bad for the industry, then it’s imperative to understand what that is and use their expertise to help shape policy correctly.

Being Techno-Optimists like Martin, we agree with his stance. The absence of evidence-based regulation leads to legislation like the 144 page-strong European Union’s AI Act that risks slowing down, restraining and even hindering progress and innovation, something we strongly oppose. As much as necessary and as little as possible – that is our regulatory stance to allow innovation to flourish. Phrasing such as "in advance", "as comprehensively as possible", or "just in case ..." is, in our view, not indicative of either an adequate or a commensurate regulatory approach.

(Photo: Kimberly White/Getty Images for TechCrunch; license notice)

Top startup traits that capture VC interest

Besides AI, conversations at TechCrunch also addressed the venture capital landscape. They highlighted the critical importance of several key factors for VCs and startups alike.

Customer-centric approach and market awareness

First of all, success hinges on working closely with customers to solve an actual problem and possessing a deep understanding of the relevant market dynamics and the investor ecosystem that can support the solution.

Evidence-backed founder confidence

Secondly, as emphasized in the discussion with VC Sound Ventures, Ashton Kutcher (pictured above), Guy Oseary, and Effie Epstein, founders can leave a lasting impression by presenting an idea with confidence as long as it is bolstered by solid numbers and facts. Never mind the deck; the main thing is whether the story is compelling and feels like a no brainer once the problem and solution have been presented.

Hard work and unwavering commitment

Thirdly, in order to successfully build the business, it is essential to foster a culture that focusses on and rewards dedicated hard work and initiative. People need to work in dedicated teams, and teams need to be empowered to do great work. This empowerment not only enhances innovation but also strengthens the potential for success in a competitive market.

This last point of success in a competitive market was strongly reiterated by Nest founder, Tony Fadell in his talk ‘Building the Next Generation of Deep Tech Startups’. When discussing what’s required to get something to market, he said it’s important to “give people enough rope, but not enough to hang themselves”.

Tony vehemently decried the culture of large tech corporations, arguing that their culture and immense resources promote entitlement, make it easier to hide, and breed complacency. As he sees it, a crystal-clear focus on the problem being solved, defined outputs, constrained resources and close collaboration on site are the elements that are of critical importance to a company’s success – especially those that truly want to disrupt for the good.

More of Tony Fadell’s anecdotes, backstories as well as his straight-talking advice can be found in his book “Build: an unorthodox guide to making things worth making”.

What’s essential for tech development

The conversation between Rivian CSO Wassym Bensaid and TechCrunch editor Kirsten Korosec on the last day of Disrupt covered “How to build tech that wins over customers”. They talked about building from scratch using first principles, paring back the complexity of technology, and how the customer experience is the essential component of the entire Rivian process. Naturally the discussion also touched on AI and how future automotive developments could be impacted.

An uncertain partnership

More interesting though (at least from our perspective) the conversation ended with a discussion of Rivian’s software partnership with the Volkswagen Group which was announced in June–a venture that’s potentially worth up to $5 billion. From Wassym’s perspective, it’s a partnership that could transform the automotive industry, if successful, and he hopes it could position Rivian as the leading supplier of EV operating systems for the automotive industry. Alongside monetization opportunities for Rivian, he argued it would accelerate the global transition to sustainable transportation. These are bold claims to make given the persistent supplier problems of Rivian, the recent Q3 results of Volkswagen Group, and the challenging economic outlook for Europe’s largest carmaker brought about by flatlining sales in Europe and a collapse in its core Chinese market. It is worth noting that all European carmakers are currently struggling in the EV sector except for BMW, as reported by Euronews based on Bank of America analysis.

Raising the stakes

Nonetheless, after TechCrunch Disrupt 2024 ended, VW and Rivian announced they would further extend the partnership, and intend to form a joint venture: “Rivian and Volkswagen Group Technologies”. It will create next-generation software-defined vehicle (SDV) platforms for use in both companies’ future electric vehicles. This would see VW’s investment with Rivian increase by some 16% to $5.8 billion and include a 50% stake in the joint venture. It’s something of quid pro quo for both companies, Rivian gets a much needed capital injection, while VW should better be able to compete in the competitive EV market with next-generation electrical architecture and software. At the very least the joint venture allays some fears that Rivian will run out of money before they become profitable.

Share your thoughts with us

These are our takeaways from TechCrunch Disrupt 2024 in San Francisco. Check out TC’s YouTube channel for more conference content! And discover what we’re up to next or share your Disrupt takeaways with us on LinkedIn.