• Markets – Bobby Jain’s hedge fund is ready for prime time.
• Tech OpenAI GPT Store developers find creative methods to get paid for work.
• Business: Jeff Bezos plan for The Washington Post implodes.

First, let’s see how the tables have flipped.

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The big story

AI is coming for VCs

zentilia/Getty Images; Jenny Chang-Rodriguez/BI

Just as turkeys set the table for Thanksgiving, VCs back tech that could lead to their demise.

The generative AI boom came as a welcome change to a venture industry that was looking for a trend it could support (and hopefully profit off of).

But the technology that transforms the world could have a major impact on the people who fund it. Ben Bergman of Business Insider writes that the result could be a reduction in roles and a change in how work is done.

Some of these adjustments aren’t new to the VC sector. AI is ripe to automate back-office roles in all industries, including venture capital.

The real fun begins when you start investing. Finding and assessing startup companies — which are often the key responsibilities of junior staff — is a type of work that large-language models can do more efficiently on a large scale.

AI won’t automate VCs completely — how else could they justify all of those fees if AI was all they used? According to the insiders Ben spoke with, a hybrid human-AI approach is the way of the future.

It’s not easy to balance between man and machine when it comes to investment decisions. Just ask hedge fund managers.

Before the generative AI boom began, funds dreamed about combining machine-based quantitative approaches with human-led fundamental ones. The concept, known as “quantamental”, struggled to find success because the two cultures often clashed.

Consider venture investing. Ultimately, you have to make a single decision: invest or not. When it comes down to it, will man or machine win out?

The VC sector could be doomed, with or without AI.

Blake Dodge, BI’s Blake Dodge, spoke with Scott Stanford, a partner and cofounder of early-stage VC firm ACME Capital. Stanford said that the half of today’s VC companies will close in the next decade.

Stanford’s theory can be summed up as follows: There are simply too many VCs, and not enough exits. This is not a reaction to the chilly IPO market of the past few years.

In a letter sent to BI, Stanford and ACME cofounder Hany Nada explained that the explosive growth of VCs over the past decade created an “overcrowded market” with excessive capitalization and valuation.

The writing is on the wall. Look no further than “zombie VCs” or investors who are running out of money.

If anyone can fix the problems, it might be… VCs. Venture investors are often hailed as disruptors, who find and help to grow solutions to big problems.

Now, VCs may have their most difficult task yet: saving themselves.

News Brief

Your Monday headline catchup

The top stories from the weekend in a quick recap:

• Ukraine must stop fighting the war Russia wants.
• Report: Prosecutors recommend DOJ bring criminal charges against Boeing.
• Elon Musk begins new feud with Lucasfilm chief Kathleen Kennedy.
• Nvidia’s Jensen Huang thanks OpenAI’s Ilya Sutskever, cofounder of OpenAI, for igniting “the big bang in deep learning”.

Three things to look out for in the market

Jared Siskin/Getty Images, Madison Square Park Conservancy

1. Jain Global’s top executive explains what will make the firm stand out before its massive launch. Wall Street has been buzzing about Bobby Jain’s new hedge fund. Jonathan Barton spoke to BI’s Jonathan Barton about and how the fund will grow quickly once it begins trading on July 1,.
2. The end to a US-Saudi agreement could damage the dollar’s dominance. Saudi Arabia decided not to renew the landmark petrodollar deal that guaranteed the use of US Dollars in the oil trade. This is bad for the dollar’s dominance. The move is part the kingdom’s grand strategy to diversify its trade and expand beyond US or European partners.
3. There is light at the end the tunnel for interest rates. According to an economist, a July rate cut is possible, even though it’s a long shot. The housing data and jobless claims show a slowdown in the economy, which may lead to the Fed offering some relief next month.

3 things in tech

iStock; Rebecca Zisser/BI

1. Chinese EV makers have slowly taken over the world. Chinese EV makers are expanding rapidly on developing markets such as Brazil and Southeast Asia, despite efforts by the US and Europe.
2. OpenAI’s GPT Store is finding new ways for developers to get paid. OpenAI has not yet rolled out plans to pay developers who make applications for its GPT Store. Some are getting creative. They are using affiliate links, ads, and “freemium models” to get paid.
3. Apple accused of breaking EU rules Apple has been accused by the European Commission of stifling its App Store competition. Regulators claimed that Apple violated new tech regulations by preventing developers from directing customers to alternative apps.

3 things in business

Elif Ozturk/Anadolu Agency via Getty Images; Chelsea Jia Feng/BI

1. Jeff Bezos’ plan to revamp The Washington Post has failed. Robert Winnett, the incoming newsroom editor, resigned Friday morning following a series of revelations regarding his past as a London-based writer. Will Lewis, publisher of the Washington Post, has also been criticized. This is bad news for Bezos who needed these two men to bring new life to the newsroom.
2. The American dream of owning a home is fast becoming a fantasy. Harvard University found that monthly payments for a median priced home after taxes and insurance are about $3,100. This is the highest level in over three decades. This payment requires a household earning at least $120,000 per year, something that only 6% renters are able to achieve.
3. The silver-lining of sports betting scams. A series of high-profile gambling incidents that rocked sports recently brought this issue to the forefront. The leagues are now educating athletes that may be prone to betting, and the industry has gotten much better at catching bad players.

In other news

• 
  
  Elon Musk confirms third child with Neuralink executive Shivon zilis.

• Kevin Costner will leave ‘Yellowstone,’ before the end of its final season. Here’s the complete timeline of all the drama behind-the scenes.
• The CEO of Perplexity explains the importance of understanding your “dopamine-system” if you are planning to start your own business.
• Jensen Huang, Nvidia, hopes that the AI bubble won’t burst any time soon.
• The reclusive millionaire who spent $75 million on Trump, and $25 million on RFK Jr.
• This exclusive program for CEO training doesn’t care if you have a 4.0 GPA.
• 
  
  Stock market performance of companies that donate money to Democrats is better than that of Republican donors.
  
  

What’s happening today

• Paris Fashion Week starts

The Insider Today Team:Dan DeFrancesco is the deputy editor and anchor in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Annie Smith, associate producer in London. Grace Lett is an associate editor in Chicago. Amanda Yen, fellow, in New York.