David Cahn Journalist Profile

Articles

Building Blocks Firmly in Place

Dec 9, 2024 | sequoiacap.com | David Cahn

Last January, we compared ChatGPT to AI's "Big Bang" and predicted that 2024 would be AI's " primordial soup " year. The AI ecosystem was abounding with new ideas and potential energy. It was a ripe moment for new entrepreneurs. "There is much potential in the air, and yet it is still amorphous," we wrote at the time. "Vision is required to convert it into something real, tangible and, ultimately, impactful."Today, the AI ecosystem has hardened.
The AI Supply Chain Tug of War

Aug 12, 2024 | sequoiacap.com | David Cahn

Here's the question now being asked all across the AI ecosystem: Is there a way for someone else to take on the demand risk from AI, while I capture the profits? Today, Big Tech companies have stepped up to alleviate some of this tension. They are acting as risk-absorbers within the system, taking on as much demand risk as they possibly can, and driving the supply chain toward greater and greater CapEx escalation.
What it Takes to Win AI

Aug 5, 2024 | sequoiacap.com | David Cahn

The race to model parity has been the defining project of the last 12 months in AI. This phase was characterized by the search for new research techniques, better training data and larger cluster sizes. The next phase in the AI race is going to look different: It will be defined more by physical construction than by scientific discovery. Up until now, you could fit your training cluster into an existing data center via colocation or retrofit.
AI Optimism vs. AI Arms Race

Jul 16, 2024 | sequoiacap.com | David Cahn

Imagine you knew for certain that AI was going to be as transformational as the internet, and that you control the only AI company in the world. How fast would you build CapEx? I believe the answer is: You would take your time. "AI CapEx" is a euphemism for building physical data centers with land, power, steel and industrial capacity. If you were the only company in AI, you'd wait to digest some AI revenues. You'd see how liquid cooling systems perform, and alter your data center designs as needed.
AI is Now Shovel Ready

Jul 8, 2024 | sequoiacap.com | David Cahn

We have written here extensively about the revenue side of the AI infrastructure buildout. My last piece, AI's $600B question, focused on the implied revenue expectations for AI, and questioned the time horizon in which we'll be able to meet those lofty goals. This piece turns to the cost side of the equation. In particular, we will focus on the data center buildout, the rise of the "AI factory," and its implications for energy, construction and the industrial supply chain.
Client Alert: Franchise Sales Likely to Get New Level of Regulation Over Third-Party Sellers | JD Supra

Jun 4, 2024 | jdsupra.com | David Cahn

A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of independent franchisee recruiters, often known as “franchise brokers.” This bill, which has the rare support of both the International Franchise Association (the “IFA”) and franchisee advocate groups such as the American Association of Franchisees and Dealers (“AAFD”), now heads...
Corporate Transparency Act Guidelines - April 2024 | JD Supra

Apr 2, 2024 | jdsupra.com | Elizabeth Atkinson |David Cahn |Mário de Castro

The Corporate Transparency Act’s (the “CTA”) reporting requirements are effective as of January 1, 2024. As a result, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Please see full publication below for more information.
Client Alert: Corporate Transparency Act (CTA) Found Unconstitutional by Federal District Court | JD Supra

Mar 5, 2024 | jdsupra.com | David Cahn |Mário de Castro |Charles McCarthy |Charles Mccarthy

U.S. District Court Holds CTA to be UnconstitutionalOn March 1, 2024, the U.S. District Court for the Northern District of Alabama in National Small Business United et al. v. Janet Yellen et. al., Case No. 5:22-cv-1448-LCB, held the Corporate Transparency Act (the “CTA”) to be unconstitutional. In this surprising decision, U.S. District Court Judge Liles C.
Corporate Transparency Act Guidelines | JD Supra

Mar 1, 2024 | jdsupra.com | Elizabeth Atkinson |David Cahn |Mário de Castro

The Corporate Transparency Act’s (the “CTA”) reporting requirements are effective as of January 1, 2024. As a result, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
From Big Bang to Primordial Soup

Jan 3, 2024 | sequoiacap.com | David Cahn

Over the Christmas holiday, I had time to reflect on 2023 and the whirlwind year we had in AI. The "Big Bang" of ChatGPT in late 2022 unleashed a fervor and, ultimately, a feeding frenzy in 2023. Not only was AI the #1 story in Silicon Valley, but it became a hot topic in every corporate boardroom, in the media and even in Washington, DC. AI drove public market stock performance too.