AI's Future Hinges on Deep Tech, Says Top European VC
The worldβs abuzz with artificial intelligence, isnβt it. From automating customer service to generating breathtaking art, AI feels like itβs everywhere.
Background
But beneath the surface of all that dazzling innovation, a quiet, profound concern is bubbling up: Is this AI truly sustainable. Is it understandable.
Or are we, as Herbert Mangesius of Vsquared Ventures puts it, struggling to make it 'digestible'.
Mangesius, a co-founder and General Partner at the pan-European deep tech fund Vsquared Ventures, certainly thinks so
He voiced his thoughts on Bloombergβs "Daybreak Europe" recently, speaking with Tom Mackenzie, and his message was clear: for AI to truly fulfill its promise, we need to dig deeper β much deeper β into foundational technologies
Weβre talking quantum computing, advanced materials, novel biotechnologies, and cutting-edge space tech
This isnβt just about tweaking algorithms; itβs about rebuilding the very bedrock upon which future AI systems will stand. And it seems investors are listening.
Just look at 55 North. This newly emerged player isn't just another tech fund; it's staking its claim as the world's largest dedicated quantum technology venture capital fund.
With an ambitious total size of β¬300 million β having just secured a hefty β¬134 million in its first close β 55 North is a serious statement of intent.
It tells us that the smart money, the patient money, is increasingly seeing quantum as more than just a sci-fi dream
Itβs an imminent reality, a foundational technology poised to revolutionize everything, including how we understand and deploy AI. And whoβs among its prominent backers.
None other than Vsquared Ventures, underscoring their commitment to this high-stakes, high-reward frontier. Vsquared Ventures itself boasts an impressive portfolio, a testament to its philosophy.
Companies like IQM, a leader in quantum computing, are busy forging the hardware that will power the next generation of computation.
Then there's The Exploration Company, boldly charting new paths in space, an arena that demands deep tech innovation for everything from advanced propulsion to satellite-enabled AI applications
And Neura, working on technologies that push the boundaries of neural interfaces and brain-computer interaction, gives us a glimpse into AI that could be far more integrated and intuitive than anything weβve seen so far
Each of these exemplifies the 'deep tech' ethos: solving the hardest problems with science and engineering, not just clever apps
Understanding the AI 'Black Box' ProblemSo, what exactly did Mangesius mean by making AI "digestible". Think about it.
Today's most powerful AI models, particularly large language models, are often described as 'black boxes.
' We feed them data, they spit out answers, but how they arrive at those answers remains largely opaque
They consume enormous amounts of energy, raising environmental concerns. Theyβre prone to biases inherited from their training data, and sometimes, they justβ¦ make things up.
This lack of transparency, sustainability, and reliability is a significant hurdle to their widespread, ethical adoption across critical sectors like healthcare, finance, or national security
"For AI to truly fulfill its promise, we need to dig deeper β much deeper β into foundational technologies
Weβre talking quantum computing, advanced materials, novel biotechnologies, and cutting-edge space tech. " — Herbert Mangesius, Vsquared VenturesThis is where deep tech steps in.
Quantum computing, for instance, promises to unlock computational power previously unimaginable.
Imagine algorithms that can process vast datasets with unparalleled efficiency, drastically reducing the energy footprint of AI
Or perhaps, quantum-enhanced AI could develop truly explainable models, shedding light on their decision-making processes.
IQM's work isn't just about faster processing; it's about fundamentally altering what's possible, paving the way for AI that's not just smart, but also responsible and transparent
Then there's the realm of space tech, championed by companies like The Exploration Company. Why is this deep tech crucial for AI.
Consider the sheer volume of data generated by Earth observation satellites, or the need for autonomous AI systems to navigate and operate in challenging extraterrestrial environments
Developing robust, resilient AI for space pushes the boundaries of machine learning, robotics, and materials science
Furthermore, securing sovereign access to space through deep tech innovation ensures nations aren't solely reliant on others for critical data infrastructure, which directly impacts data security and the trust in AI systems built upon it
And what about Neura
Their work hints at AI that might move beyond statistical pattern recognition to something closer to actual understanding or even consciousness.
If we can develop AI that is built on a more biologically inspired, foundational level, it could lead to systems that are not only more powerful but also inherently more ethical, adaptable, and, yes, 'digestible' in the human sense
It's about building AI that works with us, not just for us, in ways we can genuinely comprehend and trust.
Europe's Strategic Play for Technological SovereigntyThis European focus on deep tech isn't happening in a vacuum
Governments across the continent are keenly aware of the strategic importance of technological sovereignty, particularly in an increasingly competitive geopolitical landscape
By fostering indigenous deep tech capabilities, Europe aims to reduce its reliance on external powers for critical infrastructure and innovation, especially in fields as transformative as AI
This isn't just about economic growth; it's about national security and maintaining a competitive edge on the global stage, a key contextual analysis point for understanding these investments
What This Means for You and Southeast AsiaFor businesses, this signals a shift from incremental digital transformation to foundational technological leaps
Investing in or partnering with deep tech startups isn't just about R&D; itβs about future-proofing against disruption and accessing truly revolutionary capabilities
For consumers, it promises AI that's not just faster, but also more reliable, ethical, and integrated into our lives in more meaningful ways β think personalized medicine, truly smart cities, or climate solutions powered by intelligent systems
And for Southeast Asia. While the immediate spotlight is on Europe, the implications are significant.
Countries like Singapore, Malaysia, and Vietnam are already making strides in AI and advanced manufacturing. This European deep tech surge presents both a challenge and an opportunity.
Will Southeast Asia be able to attract some of this global deep tech investment. Will its emerging tech hubs become vital partners in R&D, potentially providing talent and unique market access.
Or will it face a widening innovation gap if it doesn't also prioritize foundational deep tech investments.
The region's vibrant startup ecosystems and growing emphasis on STEM education could be leveraged to foster indigenous deep tech capabilities, perhaps focusing on areas relevant to local challenges like sustainable agriculture, smart infrastructure, or personalized healthcare
Collaborative initiatives with European deep tech players could prove mutually beneficial, sharing expertise and accelerating development.
Ultimately, Mangesius and funds like 55 North are advocating for a patient, long-term vision
Theyβre not chasing the latest app; theyβre investing in the very fabric of our technological future.
Because if AI is truly to be the transformative force we all envision, it canβt remain a black box
It needs a solid, sustainable, and transparent foundation. And that, it seems, can only be built with deep tech.
The race isn't just about who builds the fastest AI; it's about who builds the best AI, from the ground up, for a future we can all truly digest.
