Attending as many Seattle Tech Week events as possible and talking with as many people as I could, I was struck by the number of people looking for work and the volume of visitors from the Bay Area, including a number of investors looking to get a sense for what the regional tech scene is about.
It was hard not to imagine them being impressed with the sheer level of engagement and enthusiasm, even if they didn’t happen to catch Jacob Colker’s rallying cry. With more than 250 events (and waiting lists for many of them) it was more than any one person could take in.
It wasn’t Seattle AI Week — that’s still to come in October — but given the moment in tech and the world, the topic of artificial intelligence was naturally the main throughline of the week.
A panel that changed my perspective was early in the week, called “Foundation Models Go Vertical,” hosted by the Seattle pre-seed firm Ascend at Washington 1000 downtown. Founding general partner Kirby Winfield told the room that 600 people had tried to get in.
One of the biggest insights was from Manos Koukoumidis, CEO of Kirkland-based Oumi and a former Google Cloud AI engineering manager who led large language model efforts there.
Companies that are racing to build on top of the frontier models, he said, are renting a kind of intelligence that has very little to do with their own businesses.
“Enterprises are using a model that is trained on 5% of the world’s data that sits on the web, not the other 95%,” he said, referring to the data sitting inside their own organizations.
Which led him to the question (and the point) that I keep coming back to: If the intelligence at the center of the product belongs to someone else, he asked, “are you really an AI company, or an application company on top of somebody else’s intelligence?”
The next day, in the audience for a recording of the Founded & Funded podcast by Seattle Tech Week organizer Madrona, I posed the question that we debated on last week’s episode of our GeekWire Podcast: what should Seattle founders and investors make of venture numbers that rank Philadelphia, Austin, and New York ahead of them?
It was the right place to ask, given that the show featured Nizar Tarhuni, EVP for research and market intelligence at PitchBook, which tracks the numbers, and Madrona partner Sabrina Albert.
Albert pointed out that the numbers don’t capture everything. A company can have a big engineering group in Seattle, or even a co-founder here, and still be counted as a Bay Area company, she said. Large engineering offices for OpenAI and Anthropic are the latest examples.
Tarhuni made a similar point: “There’s so much talent in some of the biggest unicorns that are actually working out of Seattle,” he said. In terms of overall economic activity, he added, “there’s a lot more here that doesn’t make its way into those numbers.”
Other quotes and insights that stood out from the sessions we attended:
Patrick Thompson, CEO of Seattle-based Clarify, said his company’s Anthropic bill had tripled in three months. He has shifted spending to AWS Bedrock, citing reliability problems, and now runs smaller models locally on his own laptop for low-level work.
Madrona’s Albert, on the shift to selling outcomes: “Before, when you were thinking about traditional software, you would charge for a seat or a unit of software. But now you can really fundamentally change it. … If I deliver this outcome for you, then you can actually pay me for it.”
Ken Horenstein, founder of Pack Ventures, which invests in startups tied to the University of Washington, on the knock that Seattle is slow: research institutions here are “choosing problems that are 10, 15, 20, 50-year problems,” he said. “Sometimes people put that as a negative rap on us because we don’t go really fast and flame really bright like you might see in other markets. But I actually think that can be used as a benefit.”
Ben Gaffney, deputy general counsel at OpenAI, on the notion that AI is thinning out headcount: “Even within the legal team that I work in, we need more people. Even though we’re getting all these massive productivity gains, it isn’t like you don’t need people to supervise this stuff.”
Brian Hall, the longtime Microsoft, AWS and Google executive who became chief marketing officer at Mistral AI in June, on where this all ends up: “We’re gonna laugh when we thought that AI was gonna save us time.”
Ascend’s Winfield, on the limits of what investors provide: “If I invested in you, it’s not because I’m smart about your market. It’s because you’re smart about your market. … If you’re looking for answers from your investors, you’re in trouble.”
Karl Siebrecht, co-founder and CEO of Flexe, at a networking event, telling founders to stop networking: “Spending time as a founder trying to market yourself to investors, I think, is a fallacy. If you focus on building a valuable company … I can promise you, investors will find you.”
Molly Klein, founder and CEO of Perk Events, who runs some of GeekWire’s biggest events, on why any of this happens in the first place: “Events are hands-down the strongest business development tool that you have,” she said. “One conversation may take six emails in three weeks. At an event, it happens in 10 minutes, because you’re getting that face-to-face time.”
That pretty much summed up the week.
