AI Executives and VCs Confront AI Backlash up Close

Dow Jones
Oct 02

Varun Sivaram, founder and chief executive of data-center startup Emerald AI, wanted to explain during a panel discussion last month how fast construction of buildings full of computer servers can benefit local communities. Protesters wanted to hear none of it.

"You are stealing resources from us!" yelled a man in the audience, soon after the panel got under way at the Javits Center in New York during Climate Week, according to a video posted online and Sivaram's recollections. After the man was dragged out by security, other anti-AI activists got up and continued to interrupt panelists.

This wasn't a one-off occurrence: AI founders and investors are increasingly facing public criticism as opposition to the fast-moving technology mounts. It's a new experience for many in Silicon Valley who are accustomed to Twitter fights, not town hall brawls.

Other panelists that day alongside Sivaram included Cully Cavness, co-founder of data-center startup Crusoe, and Suzanne DiBianca, the chief impact officer at Salesforce. Cavness wasn't available for comment, while representatives of Salesforce didn't respond to a request for comment.

Sivaram said he is ready and willing to engage with critics. Emerald AI's software aims to help data centers build without straining the power grid.

"People are passionate and have apprehensions," Sivaram said about anti-AI views. "The right response from leaders, and we aspire to be a leader, is we need to listen to what's causing the apprehensions...The wrong reaction is to dismiss these concerns out of hand."

A similar episode took place at the ALL IN conference, which convened some 10,000 techies in Montreal last month. The closing session was interrupted by an activist, and broader protests took place outside the event, as well, according to the organizers.

"We recognize that many view artificial intelligence with concern, which is understandable given the concerning news in recent weeks, and we must listen to these perspectives," the ALL IN organizers said in a statement. AI societal risks and environmental impacts were addressed at numerous sessions at the conference, they said, which made holding the event at this time crucial.

"It's the smash-the-looms moment," said Sophie Purdom, managing partner at venture firm Planeteer Capital, adding that she expects more such incidents to happen in the coming year. Businesses are taking tangible steps to ensure data centers benefit the community, she said, adding: "As with anybody going into a gold rush, they can always be working much better with the community."

Globally, people in Western democracies such as the U.S., the Netherlands, Canada and the U.K. were the most worried about AI, according to a recent poll by Gallup in partnership with Microsoft.

People worry about environmental harms and electricity costs, as well as threats to livelihoods and safety related to the rise of intelligent machines.

The backlash hasn't halted the AI build-out so far. As much as $10.3 trillion could be invested in AI infrastructure through 2032, according to Brookings Institution estimates.

The critics may be better served by pressuring politicians, rather than directing anger at AI founders and investors, said Charlie O'Donnell, an executive coach and a venture capitalist.

"A VC isn't going to back out of this and a startup isn't going to stop progressing. That's what they're set up to do," O'Donnell said. Elected officials, meanwhile, could act to rein in and regulate AI, he said.

Sivaram said he believes this is the moment for the industry to demonstrate AI can be designed with care and benefit society.

Emerald AI's software manages data-center electricity usage, cutting back when needed. The startup was valued at more than $1 billion in its Series A round this year.

"I founded [Emerald AI] because I wanted to advance the public good," Sivaram said. "Never in a million years I would've dreamt there would be protests in that way."

After the incident at the Javits Center, Sivaram said he reached out to the organizers of the next public event where he was due to appear to talk security.

 

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