Thesis 2.0 - Sovereign Computation
Thesis 2.0 - Sovereign Computation
The world has changed, so has our thesis.
Our thesis is a living framework of ideas allowing us to operate with focus and towards what matters most to us. It is built upon our perspectives on societal and technological inflection points that are shaping markets. Within it we evaluate startups as complex, adaptive systems on a case by case basis.
Inflection’s journey began in 2019 driven by the goal of fostering an open economy where data, labor and financial assets are coordinated through software networks. Our enthusiasm is deeply rooted in the emergence of novel computational platforms powered by distributed, open infrastructure, coupled with the capabilities of machines to make verifiable commitments.
Since then, we invested into and worked with companies that are at the forefront of this paradigm shift. Our portfolio spans various sectors including compute infrastructure (Arx, Cryptosat, Fabric, Modulus), drug development (Labdao, Molecule, Tune Insight), knowledge management (Anytype, t2) or financial services (Flashbots, Senken, Ultimate, Violet, Balancer, Centrifuge).
Over the last four years the world around us and our thesis have both undergone significant transformations. The pandemic set off a wave of de-globalization, marking a shift towards re-onshoring of key technologies and steering us away from the ideal of an 'open economy' based on free markets. Instead, we find ourselves gravitating towards more protectionist, homeland economies. This change is part of a broader transition into a new geopolitical era of conflict, one where the US-led hegemony is giving way to a more multipolar landscape.
For over a decade, ‘software has been eating the world’ has rung true, leaving us with over-funded incrementalism and LLM induced software abundance while our lower level compute-stack is hitting a wall and our algorithms starve for high quality data.
In response to these global shifts, we are dedicated to supporting companies, protocols, and networks that are pioneering the future of sovereign computation. We're investing in architectures that can scale effectively, networks that demonstrate unparalleled resilience, and systems where data can flow unimpeded and free.
Scale
As process scaling might come to an end it is a societal imperative that we find alternative paths to extend Moore’s Law and to grow the amount of computing power a chip can cost-efficiently produce. Current computational and networking frameworks are voracious consumers of energy, accounting for over 20% of global electricity demand, growing exponentially. The quest for new computing concepts calls for innovative changes in conducting materials, lithography and the adoption of more open, grassroots approaches to manufacturing. In the shorter term, silicon specialisation (Fabric, Arx) and advanced memory can contribute to the democratisation of silicon innovation.
Resilience
In an era marked by weather extremes and geopolitical instability, our critical infrastructures that straddle the physical and digital realms are exposed to evolving threats. We are convinced that the future of securing these vital systems lies in cryptography-powered zero trust architectures. Such architectures are set to become the backbone of the entire stack, significantly bolstering its resilience against emerging challenges (Cryptosat, Foundation).
The power of cryptographic proving systems lies in their ability to reliably verify commitments made by machines regarding data or computations. The potential applications of these systems are vast and varied. For instance, they can be employed for identity verification to combat fraud (Violet), or for content verification to authenticate the origin of information (Anytype, t2). They are also invaluable in verifying ownership and solvency to mitigate counterparty risks (Centrifuge). as well as in confirming computations to enhance the transparency and accountability of AI systems (Modulus). Further, crypto systems are key to guiding autonomous agents, ensuring not only effective incentive alignment but also robust access control (Entropy).
Flow
Closed data silos and limited access to high quality data sets are starting to form a bottleneck. Improving our algorithms necessitates new approaches to data harnessing and data interoperability ranging from nano- to intergalactic scale.
Nano-sensors are revolutionising our ability to gather data streams, whether from within the human body or from remote edge devices to catalyse advancements in material science, personalised medicine (Tune Insight) or decoding human DNA and brain waves. Our rapidly expanding understanding of DNA, the human brain and nervous system is opening up new frontiers in interface design and neuro-tech. Novel infrastructure for bio informatics resources (Labdao) and funding mechanisms (Molecule) are expected to accelerate sustainable growth in such areas.
By exploring new compute habitats from stratosphere (Radical Aero) to orbit (Cryptosat), we can leverage novel data sets - think hyper spectral imaging or magnetic fields for instance - to gain real-time insights into both, our planet’s and galaxy’s inner workings. This allows us to expand into space, predict crop yields, detect wildfires and military threats or model our climate.
Inflection is committed to a future where sovereign compute platforms power human progress by backing outlier entrepreneurs with capital, networks and technology.
If you are an entrepreneur challenging the status quo of the sovereign compute stack, reach out.