Our team has made the decision to step away from actively building DXNK & Edge Fund
Personally, its certainly a sad day for me, but its the right decision
And Im extremely proud of what we were able to accomplish
Here's an open letter to our community, from me
Love you all❤️
Chamath Palihapitiya is about to pull off the biggest AI trade in history.
A 35,000% return
$10M → $3.5B
How?
He used a strategy he calls Asymmetric Conviction Sizing and it's genius
Here's the story:
First, bookmark this so you don't lose it ✅
Back in 2017, Chamath met Jonathan Ross, the founder of a tiny startup called Groq
Groq was building "AI Inference Infrastructure"
Chamath didn't even know what that meant
No one did
But Jonathan pitched Chamath a story:
AI had two futures.
Either:
- AI stays niche.
- Inference stays irrelevant.
- Groq dies quietly.
Or:
- AI becomes the default interface for everything.
- Inference becomes the choke point.
- And whoever owns inference owns the tollbooth on the entire industry.
There was no clean middle path, the bet was BINARY
Either massive failure, or the biggest win in his funds history
That’s what made it interesting.
If you’re wrong, you lose a check.
If you’re right, you don’t get a “nice return.”
You own a dependency of a trillion $ industry
Chamath loved it and invested $10m
A few years later, reality picked a side.
AI demand exploded.
Training got commoditized.
And inference became the bottleneck everyone was tripping over.
Suddenly Groq wasn’t a science project.
It was the absolute required infrastructure.
8 years later, Nvidia just bought Groq for $20.6B
That original $10M turned into $3.5B
And only after you zoom out do you understand the strategy:
Asymmetric Conviction Sizing is when the outcome is violently lopsided.
Small, capped downside.
Obscene upside if the world breaks your way.
You don’t size it to feel safe.
You size it to matter.
What do you think, is Chamath a genius or did he just get lucky?
If you liked this, please comment & repost to support me! ❤️