James Alexander from Galileo Ventures proposes a ‘Tall Poppy’ nationwide technique for an AI revolution in Australia.
We’re witnessing the daybreak of a brand new computing revolution 66 years after the invention of the silicon chip.
This time it’s an intelligence revolution that goes past {hardware}. For the primary time, we will speak to computer systems and get them to finish duties and adapt to any business, utility, or downside.
From an investor’s perspective, this expands software program’s Complete Addressable Market exponentially. Microsoft introduced computer systems to everybody’s residence and workplace, Apple introduced software program to everybody’s palms, AI will carry software program intelligence to everybody’s jobs and lives. As Sequoia Companion Alfred Lim famous at NVIDIA’s GTC convention: “If this market shall be value 10 trillion {dollars}, we’ll see 3 or extra trillion-dollar companies created within the coming decade.”
The Australia Tall Poppy AI Technique
Australia should seize this second. I’m proposing the “Australia Tall Poppy AI Technique” – a $5 billion funding throughout 5 pillars: sovereign AI analysis capabilities, business purposes, semiconductor independence, incentives for AI firms, and expertise improvement.
AI startup Andromeda Robotics has constructed the aged care assist robotic Abi.
In contrast to our cultural tendency to chop down tall poppies, this technique goals to proudly showcase Australian AI innovation on the worldwide stage.
At Galileo, we’re massive believers and consider Australia ought to be a significant participant within the AI revolution. By way of Fund I, we’ve backed 8 seed AI firms throughout Australia and the US, and we’re desperate to fund extra distinctive rising founders constructing the following trillion-dollar AI firm. We consider at the very least one such firm will emerge from Australia or be based by Australians in San Francisco.
However we’d like extra than simply enterprise capital – we’d like a complete nationwide technique to assist our business create AI options with world influence that may rework Australia’s productiveness and lifestyle.
Australia’s AI alternative
The ambiance in San Francisco is electrical. Using my autonomous Waymo to conferences whereas scrolling via the most recent AI bulletins, you’d be hard-pressed to see “Australia” talked about alongside “AI” or “main innovator.”
Again residence, there seems to be little consciousness of this computing revolution, particularly within the present ‘least inspiring’ federal election within the nation’s historical past the place “AI” barely will get talked about besides within the context of regulation. Based on my authorities contacts, “Innovation” stays an “election killer” for any authorities.
Regardless of this, Aussies are sensible and we discover methods to succeed, typically regardless of any authorities assist. The revolution is alive and kicking on floor with county-level excessive adoption charges of AI instruments and impressive founders launching new startups weekly.
We will already see early outcomes; of the world’s largest information centre acquisition occurred in Australia (Airtrunk offered for A$24B), Canva is a world juggernaut tons of of tens of millions of customers and an exemplar of profitable AI integrations, and at Galileo, we’ve simply seen largest multi-million greenback funding right into a portfolio enterprise AI firm (announcement coming).
Australia’s key benefits
Australia has a number of essential components:
- Expertise magnet – Researchers, engineers, and executives need to reside right here to boost households and construct careers
- Analysis excellence – We have already got AI analysis pedigree throughout numerous disciplines and a big worldwide pupil base to leverage
- Rising tech sector – Our analysis exhibits Australia’s tech sector funding is rising 20% yearly, now could be the time to pour gas on the hearth.
We now want direct coverage and funding to make the most of these components.
Early Australian AI success tales
Our Fund I portfolio showcases how Australian founders are embracing the AI revolution via utilized AI throughout numerous sectors.
Relevance AI cofounders Daniel Vassilev, Daniel Palmer and Jacky Koh
From supporting the aged with robots (Andromeda) and enhancing building productiveness (BuildAI) to deploying AI agent information science groups (TrueState) to AI workforces that carry out human-quality work (Relevance AI), entrepreneurs are breaking via our conventional boundaries of distance and capital constraints.
Clearly application-layer AI, the place present fashions are built-in to radically enhance merchandise, is an “simple win” for Australia. Nevertheless, limiting ourselves to this could be shortsighted. We must always mobilise our present analysis strengths in areas like subject robotics, spend money on infrastructure, encourage nationwide early testing and adoption, and invite world AI companies to determine engineering workplaces right here.
However to perform all this, we’re lacking the important cohesive factor: a complete nationwide coverage.
Australia’s AI coverage
Lets scroll down the listing of Allied nations; the US has dedicated $280 billion via the CHIPS Act for semiconductor manufacturing, plus the non-public $500 billion Stargate Mission for AI information facilities. The UK has introduced a $19 billion AI infrastructure funding. The EU not too long ago dedicated €200 billion for AI factories throughout the continent, and nearer to residence, Singapore has launched a $1 billion nationwide AI technique.
The place is Australia’s transfer?
Because it stands, the current election revealed a disappointing lack of ambition from each main events in relation to AI.
The Australian Labor Celebration focuses cautiously on ethics and regulation, mirroring Europe’s method with intentions to introduce frameworks just like the EU’s AI Act. This now comes throughout outdated – the ‘AI doomsday’ predictions of 2023 have confirmed comically overblown with many main mannequin builders axing or decreasing their ‘AI security’ groups. From an investor lens, this will stifle our small native market earlier than it has had an opportunity to develop.
Labor guarantees investments in digital infrastructure upgrades to regional broadband and workforce initiatives to foster tech jobs, however AI is notably absent as a strategic precedence.
The Liberal Celebration emphasises innovation through prolonged R&D tax incentives and investments into cybersecurity and house tech. But AI, particularly, is manifestly lacking from their platform—there isn’t a specific point out of funding sovereign AI infrastructure, AI-specific expertise methods, or a semiconductor provide chain that will underpin AI’s development.
Each events’ present stances replicate a dangerously short-term mindset. Lacking completely are daring, strategic commitments to foundational AI infrastructure, sovereign massive language fashions (LLMs), semiconductor independence, and coordinated nationwide expertise methods. In stark distinction to look nations, Australia dangers being left behind—lacking our probability to form essentially the most transformative expertise wave of our lifetimes.
Merely put, Australia urgently wants readability, ambition, and substantial funding in AI—and neither main social gathering is at the moment offering it.
What must occur subsequent?
As a VC investor and operator working with Australian founders every day, I consider there are 5 main motion gadgets that will place Australia as a big world participant in AI.
I’ve proposed the thought experiment earlier than: what if as an alternative of shopping for US submarines, we invested $270 billion into AI immediately making us a world AI powerhouse?
My extra pragmatic proposal is to speculate $5 billion into what I’m calling the Australia Tall Poppy AI Technique.
In contrast to the standard Aussie tendency to chop down tall poppies, this coverage goals explicitly at adapting, adopting and creating new AI applied sciences and proudly showcasing them—combining a number of daring coverage actions to place Australia confidently on the worldwide AI stage.
This is able to contain a beginning allocation of $1 billion every into every:
- Funding core AI analysis together with a sovereign LLM functionality:
Investing in foundational analysis and a sovereign massive language mannequin ensures Australia isn’t merely importing AI expertise, however creating distinctive capabilities and IP to keep up management and affect over our technological future. Additional, there’s rising recognition within the cultural significance of getting specialised fashions which are skilled and uniquely tuned in the direction of a rustic’s lifestyle.
- Funding for business and sovereign functionality:
Focused funding would speed up the commercialisation of AI, strengthen vital infrastructure, and supply Australian industries—from agriculture to mining and healthcare—with a aggressive world benefit.
- Establishing and nurturing a sovereign semiconductor business:
Semiconductors underpin each AI development, but Australia stays reliant on overseas sources. Making a sovereign semiconductor functionality would drastically scale back supply-chain dangers and place Australia strategically in world tech geopolitics.
- Incentives for AI model-building firms to determine workplaces in Sydney or Melbourne:
Attracting each worldwide and homegrown AI firms by providing compelling incentives, tax advantages, and streamlined visa pathways would considerably improve native innovation ecosystems and employment alternatives in Australia’s tech capitals.
- Attracting and retraining AI expertise:
Investing in focused AI schooling, reskilling initiatives, and engaging incentives to repatriate Australian expertise from abroad or appeal to expert migrants would construct the sturdy workforce important to sustaining AI development and innovation domestically.
These focused investments will rework Australia from an AI follower into an AI chief—leveraging our distinctive strengths to attain lasting world competitiveness.
What we’re doing at Galileo
James Alexander from Galileo Ventures
We consider {that a} revolution in entrepreneurship is going on proper now the place extra distinctive first-time Aussie founders are creating new applied sciences that may have an immense world influence. Mix this with the brand new AI revolution and we have now a potent mixing pot for investing within the coming decade.
We’re launching Galileo Fund II to particularly spend money on distinctive rising founders seeking to construct on this new trillion greenback AI-power market and assist unlock new alternatives and options for billions of individuals across the globe.
Australia’s defining second
In conclusion, Australia stands at a defining crossroads. We’re introduced with a generational alternative to take part meaningfully in essentially the most transformative technological shift of our lifetime—nevertheless it requires clear-eyed ambition, strategic coverage, and daring investments.
At Galileo, we’re optimistic. We’ve seen firsthand the exceptionalism, dedication, and ingenuity of Aussie founders leveraging AI to sort out bold world challenges. Nevertheless, to really seize this second, we have to transfer collectively with strategic readability and urgency. We need to assist.
Our proposed Australia Tall Poppy AI Technique units a sensible but bold blueprint to place Australia not simply as a beneficiary of this AI revolution, however as a real world chief. With focused investments, targeted coverage initiatives, and the fitting assist ecosystem, we will be sure that this once-in-a-generation alternative isn’t squandered.
We’re dedicated to taking part in our half. With Galileo Fund II, we’re able to again the distinctive Australian entrepreneurs who will form our collective AI future. Now, it’s time for policymakers, buyers, and innovators alike to step up, guaranteeing Australia doesn’t merely comply with the AI revolution, however leads it.
The following revolution is going on now—let’s be certain Australia doesn’t miss it.
- James Alexander is a cofounder and Normal Companion at Galileo Ventures
