Kevin Rose’s simple test for AI hardware — would you want to punch someone in the face who’s wearing it?

Kevin Rose, a seasoned investor, has a strikingly straightforward criterion for assessing AI hardware: if the thought of wanting to punch someone wearing it crosses your mind, it’s likely not a sound investment. This candid perspective stems from Rose’s extensive experience observing AI hardware startups and their recurring pitfalls. As a general partner at True Ventures, Rose has invested in notable companies like Peloton, Ring, and Fitbit, but he has largely steered clear of the current AI hardware frenzy sweeping through Silicon Valley. While many venture capitalists rush to finance the latest innovations, such as smart glasses or AI wearables, Rose prefers a more cautious stance. "A lot of it is just like, ‘Let’s listen to the entire conversation,’" he stated, emphasizing how many of these products disrupt social norms surrounding privacy. Having served on the board of Oura, which dominates the smart ring market, Rose has a keen understanding of what makes wearables successful. He argues that the key factors go beyond just technical prowess; they also involve emotional impact and social acceptance. "You have to consider how it makes you feel and how it affects those around you," he explained during his appearance at TechCrunch Disrupt. His own experiences with various AI wearables, including the short-lived Humane AI pendant, have also influenced his views. A memorable confrontation with his wife revealed the pitfalls of relying on AI to settle disputes, leading him to abandon the device. "You do not want to win a battle by consulting your AI logs," he recalled. Rose critiques the simplistic applications of AI, such as using smart glasses for trivial queries about landmarks. He believes that hastily integrating AI into everything is detrimental. He recounted a friend's experience of erasing a gate from a photo, highlighting how such alterations can mislead future generations. "We’re in an early phase similar to the dawn of social media," he warned, stressing that today’s seemingly harmless AI decisions may have unforeseen consequences down the line. Interacting with his children has also highlighted these challenges. When they inquired about AI-generated puppies, he found it awkward to explain the distinction between reality and artificial creation. He prefers to liken AI to movie magic, making it easier for his kids to grasp its limitations. Despite his reservations, Rose remains optimistic about AI’s potential to revolutionize entrepreneurship and the venture capital landscape. He noted how the barriers for new entrepreneurs are diminishing rapidly. He shared a story of a colleague who created an entire app using AI coding tools during a road trip, a task that would have previously taken much longer due to technical hurdles. Looking ahead, Rose predicts that new AI advancements will minimize errors significantly, making coding more accessible. He envisions a future where high school students could launch billion-dollar businesses with innovative ideas. This transformation could alter how venture capital operates, allowing entrepreneurs to postpone fundraising or even bypass external funding entirely. Rose believes that the focus for VCs should shift toward addressing emotional challenges faced by founders, highlighting the importance of emotional intelligence in fostering long-term partnerships. When considering investments, Rose draws inspiration from advice given to him by Larry Page during his early career. He seeks founders who are not afraid to tackle ambitious, unconventional ideas, stating, "We want founders that are really swinging for the fences with bold concepts that others might dismiss as foolish." He values the mindset of such entrepreneurs, believing that even unsuccessful attempts are worthwhile if they stem from innovative thinking.