{"id":242537,"date":"2026-01-17T05:36:09","date_gmt":"2026-01-17T05:36:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/242537\/"},"modified":"2026-01-17T05:36:09","modified_gmt":"2026-01-17T05:36:09","slug":"theres-a-years-long-lag-in-ai-hype-cycle-ex-openai-researcher-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/242537\/","title":{"rendered":"There&#8217;s a Years Long Lag in AI Hype Cycle, Ex OpenAI Researcher Says"},"content":{"rendered":"<p>There is a yearslong lag in the AI hype cycle, according to one former AI researcher turned venture capitalist.<\/p>\n<p>Jenny Xiao, who cofounded Leonis Capital in 2021 after a stint at OpenAI, said the current investment excitement around AI is far behind the actual research.<\/p>\n<p>&#8220;There is a massive disconnect between what researchers are seeing and what investors are seeing,&#8221; Xiao said on the Fortune Magazine podcast this week.<\/p>\n<p>What&#8217;s being discussed at the biggest\u00a0<a target=\"_self\" href=\"https:\/\/www.businessinsider.com\/at-an-ai-conference-attendees-were-asked-which-startup-they-would-short-2025-11\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">AI conferences<\/a>\u00a0is as much as 3 to 5 years behind what researchers are thinking about, Xiao said.<\/p>\n<p>&#8220;We are so behind the technical frontier, and that&#8217;s the gap I really want to bridge,&#8221; she added.<\/p>\n<p>Xiao, who dropped out of a Ph.D. program in economics and AI to take a researcher role at OpenAI, founded Leonis Capital to bridge the worlds of venture capital and deep academic AI research.<\/p>\n<p>&#8220;With AI, there needs to be a new generation of founders. There needs to be a new generation of VCs,&#8221; she said.<\/p>\n<p>It&#8217;s also the first time investors need to be able to provide financial support to both the market and the technology, she added. Unlike <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/openai-saas-attack-hubspot-salesforce-docusign-zoominfo-2025-9\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">SaaS companies<\/a>, which were built on a &#8220;stable tech stack,&#8221; AI is moving fast. To keep up, Xiao said investors are going to need to be as technical as the founders.<\/p>\n<p>If she has one piece of advice for investors who haven&#8217;t gone deep into the technical side, it&#8217;s that they should know &#8220;AI progress isn&#8217;t linear,&#8221; she said.<\/p>\n<p>They should know AI progress happens in &#8220;lumps,&#8221; she said. So, questions about why AI progress is slowing down or speeding up aren&#8217;t the best way to characterize the rate of development.<\/p>\n<p>&#8220;It&#8217;s neither of those two extremes,&#8221; she said. &#8220;It&#8217;s somewhere in between.&#8221;<\/p>\n<p>Leonis Capital did not immediately respond to a request for comment from Business Insider.<\/p>\n","protected":false},"excerpt":{"rendered":"There is a yearslong lag in the AI hype cycle, according to one former AI researcher turned venture&hellip;\n","protected":false},"author":2,"featured_media":242538,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-242537","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/242537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=242537"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/242537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/242538"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=242537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=242537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=242537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}