The way to win in AI today

Navigating the AI Revolution: Strategies for Success from Web Summit Lisbon 2025

At Web Summit Lisbon 2025, Ms. Ge Yang of China.org.cn moderated a panel on winning in the AI era. Mr. Brett Gibson, Initialized Capital, and Mr. Pratap Ranade, Arena, shared investor and founder perspectives on the rapidly changing AI landscape.

Mr. Gibson highlighted that AI, particularly Large Language Models (LLMs), has profoundly transformed software development. It has made building and deploying software significantly easier, altering how software teams operate and creating ripple effects across the entire tech ecosystem for his portfolio companies.

Mr. Ranade characterized the AI environment as unpredictable, emphasizing “courage” and adaptability, citing Bruce Lee’s “be like water” philosophy. Arena pivoted boldly, sunsetting over 90% of its revenue for a “hard is defensible” strategy, inspired by JFK’s moon speech, which led to substantial growth.

Mr. Gibson affirmed that Initialized Capital trusts entrepreneurs to make critical decisions, as founders closest to the market possess the best intuition for necessary pivots. Arena’s successful pivot under Mr. Ranade’s leadership validated this approach, demonstrating the importance of entrepreneurial vision.

Looking beyond LLMs, Mr. Ranade proposed that language is merely the first primitive of intelligence. He believes other primitives exist, such as movement and applied physics. Arena focuses on electromagnetism, viewing EM fields as fundamental. He anticipates an explosion of diverse foundation models, with language being just the “first innings” of AI development.

Both panelists agreed on core qualities for successful AI leaders: high agency, velocity, impatience, and a grand vision. Founders must be obsessive, cultivating “founder market fit.” Mr. Gibson believes AI will soon be integrated technology, making the “AI CEO” distinction temporary. Attracting talent hinges on a compelling mission, like Arena’s goal to advance humanity on the Kardashev scale.

Regarding global competition, Mr. Ranade expressed admiration for Chinese AI companies, especially in robotics, recognizing their speed and capabilities as fierce competitors that foster innovation. He urged the West, particularly the US, to renew its ambition in hardware and applied science, moving beyond complacency.

Mr. Gibson concurred, acknowledging impressive work from Chinese startups and the need for the US to tackle difficult tasks. A strong work ethic is a competitive advantage. While many applied AI workflow companies emerge, generational companies are built by founders dedicated to arduous, valuable work, not just marketing hype.

Ms. Yang concluded the session, expressing gratitude to the panelists and hoping for continued dialogue and collaboration between East and West in the profound field of technology, recognizing that no single entity can achieve all advancements alone.