“We’ve been investing in AI for the last seven years,” Kutcher said. “But when we saw GPT be launched, we realized that this was an absolute breakthrough.”

He acknowledged the so-called hype cycle that washes across technology investing, most recently with the rush into crypto, a field where Sound Ventures also has been active. The blockchain technology at the heart of cryptocurrency has value in a number of applications, he said, while “tokenization” in many areas went too far.

Regulation of AI is “needed badly,” he said