Kevin Rose's AI Hardware Test: The 'Punch Test'

A Veteran Investor's Perspective on AI Hardware

Kevin Rose, a seasoned investor, employs a straightforward criterion when assessing potential investments in AI hardware: “If an individual’s initial reaction to a device is a desire to physically confront the wearer, it’s likely not a worthwhile investment.”

This candid observation stems from Rose’s experience witnessing current AI hardware startups repeating patterns he’s observed previously. As a general partner at True Ventures, with prior investments in companies like Peloton, Ring, and Fitbit, Rose has largely refrained from participating in the current surge of interest in AI hardware within Silicon Valley.

Concerns About Constant Surveillance

Rose expresses concern that many AI wearables focus excessively on continuous data collection. “A significant portion of current AI wearable development seems centered around perpetually listening to all conversations,” he notes. “This, in his view, infringes upon established social norms regarding privacy.”

His insights are informed by his time on the board of Oura, a leading smart ring manufacturer holding 80% of the market. He’s observed that success in the wearable technology sector isn’t solely determined by technical capabilities, but also by emotional connection and societal acceptance.

“As an investor, it’s crucial to evaluate not only the technology itself, but also the emotional impact it has on both the user and those around them,” he stated at TechCrunch Disrupt 2025. “Much of the current AI focus feels intrusive, constantly monitoring and attempting to assert intellectual superiority, which is ultimately detrimental.”

Personal Experiences and Ethical Considerations

Rose recounts his own experiences with AI wearables, including the now-defunct Humane AI pendant. A pivotal moment occurred during a disagreement with his wife. “I questioned my own recollection of events and attempted to use the device to validate my perspective,” he remembers. “That was the last time I used it. Relying on AI logs to win an argument is unacceptable.”

He dismisses the notion that simple use cases, such as identifying landmarks through smart glasses, are sufficient justification for the technology. “The tendency to integrate AI into every product is proving detrimental,” he argues, citing examples like photo editing apps that allow users to remove elements from images. “A friend altered a photograph by removing a gate, and his children questioned its existence. That’s a concerning trend.”

Parallels to Early Social Media

Rose draws parallels between the current AI landscape and the early days of social media, warning of potential long-term consequences. “We risk repeating past mistakes, implementing solutions that appear harmless now but may prove problematic in the future,” he cautions. “We may later reflect on this period and regret our indiscriminate application of AI.”

He illustrates this point with a personal anecdote involving his children and OpenAI’s Sora video generation tool. After creating videos of fictional Labradoodles, his children inquired about acquiring such pets. “Explaining the artificial nature of the puppies proved awkward,” he admits. He addresses the situation by framing AI as a form of illusion, akin to movie special effects.

AI's Positive Impact on Entrepreneurship

Despite his reservations about AI hardware, Rose remains optimistic about AI’s transformative potential for entrepreneurship and the venture capital industry.

“The obstacles facing entrepreneurs are diminishing rapidly,” Rose observes. He shares an example of a colleague who successfully developed and deployed a complete application during a road trip from Los Angeles to San Francisco, leveraging AI coding tools. This task would have been significantly more challenging and time-consuming just six months prior.

“With the anticipated release of Google’s Gemini 3, coding errors will be virtually eliminated,” Rose predicts. “Coding education will evolve into ‘vibe coding,’ empowering students to create innovative businesses. This is inevitable.”

A Shift in the Venture Capital Landscape

These advancements are fundamentally altering the dynamics of venture capital, Rose contends. Entrepreneurs can now postpone fundraising or even bypass external funding altogether. “This shift will positively reshape the VC landscape,” he believes.

While some venture firms are expanding their engineering teams, Rose advocates for a different approach. He believes the value proposition of VCs will shift towards more nuanced skills. “Entrepreneurs will increasingly require support beyond technical expertise,” he argues. “They will need emotional intelligence and guidance from experienced partners who have navigated similar challenges.”

The Importance of Vision and Resilience

Rose emphasizes the importance of identifying founders with a “healthy disregard for the impossible,” a concept shared with him by Larry Page during his time at Google Ventures.

“We seek founders who are not merely refining existing ideas, but pursuing ambitious, groundbreaking concepts that others deem unrealistic,” Rose explains. “Even if these ventures ultimately fail, we value their innovative spirit and are eager to support their future endeavors.”