Eric Schmidt's Hillspire Invests Heavily in AI Startups

An original version of this article was published in CNBC's Inside Wealth newsletter, authored by Robert Frank, which serves as a weekly resource for high-net-worth investors and consumers. To receive future editions directly in your inbox, you can subscribe. Eric Schmidt, the billionaire ex-CEO of Google, has earned the nickname "the AI whisperer" due to his extensive forecasts and cautions regarding artificial intelligence. Behind the curtain, Schmidt's family office is actively investing in numerous private AI startups. Known as Hillspire, Schmidt's family office has poured funds into 22 private AI firms since 2019, as revealed exclusively to CNBC by Fintrx, a platform specializing in private wealth intelligence. In the past year, Hillspire made 13 investments in AI startups, which comprised more than 75% of Schmidt's total startup investments. While the specific dollar amounts for these investments remain undisclosed, making it difficult to ascertain his exact contributions to each company, some of these investments were follow-on rounds for previously invested companies. Nonetheless, funding rounds for the 22 companies Schmidt has backed since 2019 collectively exceed $5 billion, based on Fintrx data.
His investment portfolio features some prominent AI startups, such as Anthropic, Holistic AI, and SandboxAQ, alongside smaller firms like the Swiss startup Optiml and Altera and Inworld AI. Schmidt has emerged as a leading advocate for artificial intelligence, co-authoring the significant book "The Age of AI" with Henry Kissinger and Daniel Huttenlocher. He is also a prominent commentator on AI's potential dangers. In a late 2022 interview with ABC News, Schmidt remarked that when computers can learn and master everything, "that's a dangerous point. When the system can self-improve, we need to contemplate unplugging it. " Recently, Forbes reported that Hillspire is also backing Hooglee, an AI startup concentrated on video and social media, with its website claiming to be "on a mission to transform the way people connect through the power of AI and video. " Although Schmidt has been a prominent figure in technology, he is not the only family office interested in AI. A survey from UBS indicates that artificial intelligence has become the leading investment theme among family offices. Over 75%, or 78%, of family offices surveyed intend to invest in AI within the next two to three years, the highest proportion for any investment category, according to the UBS Global Family Office Report. Below is the list of Hillspire's AI startup investments: John Lamparski | Getty Images
Brief news summary
Eric Schmidt, former CEO of Google and dubbed "the AI whisperer," is known for his deep insights into artificial intelligence (AI). Since 2019, through his investment firm Hillspire, he has funded 22 private AI startups, with 13 of those investments made in 2022 alone, representing over 75% of his total startup funding, which exceeds $5 billion. Noteworthy investments include prominent companies like Anthropic and Holistic AI, alongside innovative startups such as Optiml and Inworld AI. Schmidt co-authored "The Age of AI" with Henry Kissinger and Daniel Huttenlocher, reflecting his advocacy for AI while expressing concerns about the risks posed by self-improving systems. Recently, Hillspire invested in Hooglee, an AI startup aiming to transform video and social interactions, echoing the growing focus on AI technology. According to a UBS survey, over 75% of family offices intend to prioritize AI investments soon, underscoring the technology's increasing significance in investment strategies.
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