20VC: Deepseek Raises $50BN | Wall St's $725BN AI Question | The Rise of Open Source & How it Threatens OpenAI & Anthropic | OpenAI Builds it's Own Chip: Jalapeno | The Death of Moats & The New AI Software Winners

**Jason Lemkin** (0:00)
Open source is a bit of a fake because China is paying for all the training.

**Rory O'Driscoll** (0:03)
The market is set, the game is clear. And this is the classic thing about bull markets is that you can be intellectually right, but the narrative can keep going a long time.

**Jason Lemkin** (0:12)
I think the big story of 2027 in AI and the enterprise and all the margins in the enterprise, right, is show me the ROI next year.

**Rory O'Driscoll** (0:19)
So you're really talking about 7, 8% of the labor force being replaced by tokens for the mat to work.

**Jason Lemkin** (0:27)
I literally was doing a pitch this week and the founder was going on and on about their motes and I immediately didn't want to invest. Like I just, enough. Your moat can be LLM lifted away.

**Rory O'Driscoll** (0:37)
There's only one thing worse than a seat based model, Jason, and that's a model that's based on bodies.

**Jason Lemkin** (0:42)
You don't get to make 10 million for working 18 hours a week. You get a watch, you get an Omega. You want an Omega or you want to be rich? Make your choice, boys.

**Rory O'Driscoll** (0:50)
The whole reason the OpenAI and Entropic models work is because other idiots have spent the $300 billion on their behalf.

**Harry Stebbings** (0:58)
This is 20VC with me, Harry Stebbings, and it's my favorite show of the week. Jason Lamkin, Rory O'Driscoll discussing everything you need to know that's gone on in the last seven days. So what do we discuss today? Google loses two generational scientists in 48 hours. That's a tough time. Deepsea closes $7.4 billion Series A. Is the Series A at a $50 billion price, but only trying to get us voting rights? Interesting. And then finally, the $725 billion question. Wall Street is finally asking, who's actually going to pay for AI? But before we dive into the show today, are you a founder working non-stop to raise your next round? Are you an investor doing all you can for your portfolio companies to help them stand out? Funding and scaling a vision is challenging. Banking should not be. HSBC Innovation Banking caters to tech and healthcare founders all over the world, who need a really great banking partner that matches their pace, offering fast onboarding, product packages, designed for your business, and capital solutions built for high-growth startups and the VCs investing in them. With HSBC Innovation Banking's rapid onboarding, you can get access to your new accounts and facilities quickly, so your team can stay focused on building and scaling what's next. You'll be paired with your own dedicated team of venture ecosystem veterans who have the network and experience to guide companies in your specific sector, at your specific stage. And behind that support is this real strength. HSBC's $3 trillion balance sheet and global network that provides this stability in international reach needed to grow your operation with confidence. To see how HSBC Innovation Banking can support you, whether you're on day one or day a thousand, visit innovationbanking.hsbc to learn more and connect with an innovation banking specialist. That's innovationbanking.hsbc.
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