Eric Schmidt's Family Office Invests in 22 AI Startups

Eric Schmidt, the billionaire former CEO of Google, has become known as "the AI whisperer" for his widespread predictions and warnings about artificial intelligence. His family office, Hillspire, has recently invested in 22 AI startups, demonstrating his commitment to the rapidly evolving field of AI.

Maelstrom, the family office of BitMEX co-founder Arthur Hayes, leads the list with 22 startup investments this year, primarily in blockchain technologies such as Cytonic, Magma, and Term Labs. Other key players include Motier Ventures, headed by Guillaume Houzé of the Galeries Lafayette family, with 21 investments in areas including AI and blockchain. Tied for third are Atinum Investment, a South Korean family office focused on software and AI, and Hillspire, Eric Schmidt's office, known for its AI and energy sector bets.

Family offices are becoming major forces in venture capital, contributing nearly a third of startup funding in 2022, according to PwC. A UBS report reveals AI as the top investment priority for 2024, with 78% of family offices planning AI investments within the next few years.

Hillspire employs teams of experts to evaluate tech deals and partners with venture capital funds to navigate complex markets, mitigating risks such as overextending investments in volatile tech startups with declining valuations and reduced exit opportunities. This approach allows Hillspire to balance the potential risks and rewards of investing in AI startups, contributing to the growth and sophistication of the startup ecosystem.

The expected timeline for these AI startups to generate returns can vary, but it typically takes several years. Eric Schmidt, as an angel investor, is likely to have a long-term investment horizon. His involvement in Magic's funding round, along with other prominent investors like Atlassian, CapitalG, and Sequoia Capital, suggests that they are willing to wait for the company to grow and potentially generate significant returns over an extended period.

In summary, Eric Schmidt's family office, Hillspire, has invested in 22 AI startups, demonstrating his commitment to the rapidly evolving field of AI. By employing teams of experts and partnering with venture capital funds, Hillspire mitigates risks and balances the potential rewards of investing in AI startups. The expected timeline for these startups to generate returns can vary, but Schmidt's long-term investment horizon suggests that he is comfortable with the extended timeframe required for these startups to grow and potentially generate significant returns.