When people ask me what is the next trend in Silicon Valley? You think, I am so stupid to ask Apple or Google apple and Google we simply tell you that product that they are developing period, if you ask them what is the next big thing apple will tell you the next big thing is the iPhone 7. Of course, what does that tell me nothing absolutely nothing. What I do I is to go to GitHub. There are the number one projects concrete ranks you know basically many people are interested in this project I got to get hub so four years ago, you saw a lot of machine learning projects very high. This was before people went crazy about AI.
The whole movement of open source software and hardware is extremely important that's where people really do what they think is important during the day they work at the company and they just follow orders if the boss decided to develop the iPhone 7, I would work on the iPhone 7. Why? Because they are paid a salary to do that, then I go home and work in something completely different. I want to know what is a different thing that you are doing because that's you are somebody knows the technology very well and you are wasting your time your precious time on that thing.
Tell me what it is the next track? So, it's extremely important and people underestimate now when the dotcom, at the begin of the internet, the big problem was how do you make money out of it. Why? Because in Silicon Valley, everybody was doing for free so all these products are free. Search engines are free, social media free. How do you make money? The venture capitalist couldn't figure out how do you make money. You know the traditional business plan was, I make this laptop, I sell it at this price.
So, in the business plan that you present to venture capitalist, you show these are the cost, the revenues and the profit. Very simple to understand but when all these kids came out with do I have this great idea for an app for an application of the internet. Okay, how much does it cost? Free.
What is the money? So, the dotcom crashed also because venture capitalist could not understand how you are going to make money. And eventually it was really yahoo was first to recognize. At the beginning, yahoo was very smart. They come up with idea we can create massive advertising revenues but the problem is free. It took a long time for the traditional businessman to understand a free product is very available today the number one company in the world is Google whose product is free.
Such a change requires, such a creative mind to think the number one product in the world is free. But if you were in Silicon Valley, you’re in the culture of not afraid of failure, the culture of “don't worry about the money”. The money is not the number one thing. The number one thing is doing something that is really great, that you really like and you really want that thing to be useful.