There is a laggard in our backyard that is slowing down progress. Fortunately, Silicon Valley trades on entrepreneurs disrupting this old guard.
The venture capital industry is stuck in yesteryear—the same people, living the same lives and having the same experiences making largely the same decisions. This sameness may have been a strength, but now it is creating blindspots. For every idea we fund, how many great ideas don’t even get a sounding board because we can’t relate to the problem or the entrepreneur? How much better off would we be if we had a larger lens from which to examine a broader class of entrepreneurs and ideas? My suspicion is greatly.
The bottom line is that the VC community is an increasingly predictable and lookalike bunch that just seems to follow each other around from one trivial idea to another. That was confirmed by an analysis we published today with The Information. My conclusion is that we need to improve decision-making or change the decision makers within our industry.
At the core of this problem are the people stewarding the capital that is supposed to be the arbiter of good ideas. When we back one business over another, we are voting our desire for that idea to exist. To be clear, this also means we are saying that the “change” we fund is more important than the change we don’t. Success is not zero sum, but time and focus definitely are.
And this is the biggest problem with venture capital right now. We have replaced “venture” capital with “product-market fit” capital.
The original practitioners of venture capital were the eccentric, quirky outcasts of traditional society who themselves were entrepreneurs. We’ve replaced this diverse bunch with a conformist but pedigreed group who are largely risk averse and driven more by FOMO than by passion or vision.
These new practitioners have several characteristics:
- They have decided that ideas are too risky and leave this work to incubators or angels.
- They will only play when some amount of “traction” exists.
- They don’t deeply understand the traction or have a view on the business, but simply want “momentum.”
The problem with this approach is that the big ideas of our day aren’t getting the ecosystem of support they need in order for them to have a chance. Big ideas are hard. They take a long time. They require huge amounts of capital. They have lots of risk, but also have massive upside in success. This should all be reasons we get excited. But, increasingly, these are the reasons to say no. So how do we fix this?
Instructively, when you look at groups who have taken major strides to improve the world over the past several decades, one thing is increasingly common to them all.
From the foundations and NGOs that are eradicating poverty and taking care of the world’s worst off, to companies like Facebook, Google and Apple that are inventing the future while looking after our best off, they have all explicitly decided to become less consensus driven and less homogeneous. They have found this increases creativity and drives business results. In turn, they are doing the ambitious, groundbreaking work that we used to do. And even though they have more work to do, when you compare the complexion of these leaders to the leaders within our industry, we look like total laggards.
I’m not going to regurgitate the litany of research showing the value of equality and diversity or how woefully pathetic our industry is even in comparison to the companies we fund; the data is stark and embarrassing. But the data is now in the open and available to all of us so we can act.
As a result of this expose, we will start to see many opinions voiced. Some will be along the lines of, “I’m glad we’re starting the conversation.” Don’t fall for this platitude. Or, more insidiously and in backrooms, “It’s not clear that a diverse or balanced venture firm will result in returns.” To which I would say, it’s not like the counterfactual is actually impressive enough to justify not changing. The average returns in venture are sad—you are largely better off investing in public ETFs—less risk, same reward and totally liquid.
The point of this subterfuge is to take the focus away from what really matters.
What really matters is that we are in the midst of a technological renaissance that will be much farther reaching than any of us can predict if we invest correctly. Our generation has an opportunity, in our lifetime, to put a massive dent in human suffering and make trillions of dollars in return. Among the potential benefits:
- A broad educated humanity
- Eradication of cancer and preventable disease
- A sustainable environment
- Diverse capital bases that actually pursue the best ideas
- Safety, security, and less violence so each of us can achieve our potential
We need a wake up call on Sand Hill Road. We need to recapture our potential and open the doors. Invite more people into the decision making: young people, Blacks, Latinos, females, LGBT and others who aren’t necessarily part of the obvious majority. Surround ourselves with a more diverse set of experiences and maybe we will prioritize a more diverse set of things. Maybe we will find more courage to do the hard things.
The VC world is cloistered and often afraid of change—the type of change that would serve the world better. An industry that wields the power to change lives is failing to do just that. Ultimately, fund investors will wake up to this bleak reality. We must change before this happens.
And if we don’t?
If we don’t, and we stay on our current path, the amount of human suffering in the world will continue to compound and will eventually spill into each of our backyards. When this happens, and it will, we will wonder who was supposed to have stopped it.
This last part is what frustrates me the most: It will have been us.
During his View From The Top talk, Chamath Palihapitiya, founder and CEO of Social Capital, discussed how money is an instrument of change which should be used to make the world a better place. “Money drives the world for better or for worse. Money is going to be made and allocated – you have a moral imperative to get it and then use it to make a difference.“
Uber was the most valuable private company in history, but the public market has not been as enthusiastic. The reason explains a lot about how the tech industry works.
But some of it should go to Silicon Valley’s cultural divergence from the business reality. Investors loved the company not as an operating unit, but as an idea about how the world should be. Uber’s CEO was brash and would do whatever it took. His company’s attitude toward the government was dismissive and defiant. And its model of how society should work, especially how labor supply should meet consumer demand, valorized the individual, as if Milton Friedman’s dreams coalesced into a company. “It’s almost the perfect tech company, insofar as it allocates resources in the physical world and corrects some real inefficiencies,” the Uber investor Naval Ravikant told San Francisco magazine in 2014.
These days Greylock maintains not one but two offices in the San Francisco Bay Area. One is on Sand Hill Road, in Menlo Park, long the Wall Street of venture capital and more or less in the middle of Silicon Valley. But these days the center of gravity in the tech world has shifted north to San Francisco, and Greylock, like most of the area’s leading venture firms, now leases space in the city.
It doesn’t look too bad, right? It’s going in the right direction: up.
But we were venture-funded, which was like playing a game of double-or-nothing. It’s euphoric when things are going your way — and suffocating when they’re not. And we weren’t doubling fast enough to raise the $15M+ Series B (the second major round of funding) we were looking for to grow the team.
For the type of business we were trying to build, every month of less than 20 percent growth should have been a red flag.
But at the time, I thought it was okay. We had money in the bank and product-market fit. We would continue to ship product and things would work out. The online creator movement was still nascent; the slow growth wasn’t our fault. It always looked like change was right around the corner.
But now, I realize: It doesn’t matter whose “fault” it is; we hit a peak in November 2014 and stalled. A lot of creators absolutely loved us, but there weren’t enough of them who needed our specific product offering. Product-market fit is great, but we needed to find a new, larger fit to justify raising more money (and then do it again and again, until acquisition or IPO).
.. Looking back, I’m glad we didn’t hit those numbers. If we’d doubled down, raised more money, and appeared in the headlines again, there would have been a very real possibility of even more spectacular failure.
.. Some of my investors wanted me to shut down the business. They tried to convince me that my time was worth more than trying to keep a small business like Gumroad afloat, and I should try to build another billion-dollar company armed with all of my learnings — and their money.
I tended to agree with them, to be honest. But I was accountable to our creators, our employees, and our investors — in that order. We helped thousands of creators get paid, every month. About $2,500,000 was going to go into the pockets of creators — for rent checks and mortgages, for student loans and kids’ college funds. And it was only growing! Could I really just turn that faucet off?
If I sold the company, it would be mostly for our stellar team — and I would no longer be able to control the destiny of the product. There were too many acquisition stories of companies promising exciting journeys and amazing synergies to come — and ending with a deprecated product a year later.
Selling was certainly tempting. I could say I sold my first company, raise more money, and do this all again with a new idea. But that didn’t sit right with me. We were responsible to our creators first. That’s what I told every new hire and every investor. I didn’t want to become a serial entrepreneur and risk disappointing yet another customer base.
We decided to become profitable at any cost. The next year was not fun: I shrunk the company from twenty employees to five. We struggled to find a new tenant for our $25,000/month office. We focused all of our remaining resources on launching a premium service.
For years, my only metric of success was building a billion-dollar company. Now, I realize that was a terrible goal.
.. To me, happiness is about an expectation of positive change. Every year before 2016, there was an improvement in my expectations — in the team, the product, or the company. This was the first time in my life when the present year felt worse than the last.
.. It doesn’t matter how amazing your product is, or how fast you ship features. The market you’re in will determine most of your growth. For better or worse, Gumroad grew at roughly the same rate almost every month because that’s how quickly the market determined we would grow.
Instead of pretending to be some sort of product visionary, trying to build a billion-dollar company, I’m just focused on making Gumroad better and better for our existing creators. Because they are the ones that have kept us alive.
.. At a CEO Summit many years ago, my all-time hero, Bill Gates, took the stage. Someone asked him how he dealt with failing to capture so much value. Microsoft was huge, sure, but tiny compared to the total impact it has had on the world and on humanity.
Bill’s answer: “Sure, but that’s true with all companies, right? They create some value and succeed in capturing a very small percentage of it.”
I am now more focused on creating value than capturing it. I still want to have as large an impact as possible, but I don’t need to create it directly or capture it in the form of revenue and valuation.
.. While Gumroad, Inc. may be small, our impact is large. There is, of course, the $178,000,000 we have sent to creators. But then there’s the impact of the impact, the opportunities that those creators have taken to create new opportunities for others.
.. As a way to re-engage with the community, I thought about sharing our financials publicly. Founders starting their own companies could learn from our mistakes, utilizing our data to make better decisions.
It was scary: What if we don’t grow every month? It could scare off prospective customers. It’s something I would never expect a startup seeking venture capital to do. It makes sense to hold those cards as close to your chest for as long as possible when you must raise money, hire people, and compete for customers with other venture-seeking startups.
But, since we were not any of those things anymore, it was easier to share that information. We were profitable, and a no-growth month won’t change that. So in April 2018, I started to release our monthly financials publicly.
.. Ironically, more investors have reached out (we’re just interested in raising money from our customers for the moment, thanks!), more folks want to contribute to Gumroad, and our shift in focus has brought us closer to our creators.
And instead of freaking out about how “small” Gumroad actually is (like I thought they would), our creators have grown more loyal. It feels like we’re all in this together, trying to earn a living doing what we love.
Soon, we’re also planning to open-source the whole product, WordPress-style. Anyone will be able to deploy their own version of Gumroad, make the changes they want, and sell the content they want, without us being the middleman.
.. Where did my singular focus on building a billion-dollar company come from in the first place? I think I inherited it from a society that worships wealth. I don’t think it’s a coincidence that Bill Gates was my all-time hero and the world’s richest person. Ever since I can remember, I’ve equated “success” with net worth. If I heard someone say “that person’s really successful,” I didn’t assume they were improving the well-being of those around them, but that they’d found a way to make a ton of cash.
Stanford has established itself as the epicenter of computer science, and a farm system for the tech giants. Following major scandals at Facebook, Google, and others, how is the university coming to grips with a world in which many of its students’ dream jobs are now vilified?
At Stanford University’s business school, above the stage where Elizabeth Holmes once regurgitated the myths of Silicon Valley, there now hangs a whistle splattered in blood. More than 500 people have gathered to hear the true story of Theranos, the $9 billion blood-testing company Holmes launched in 2004 as a Stanford dropout with the help of one of the school’s famed chemical engineering professors.
When Holmes was weaving the elaborate lies that ultimately led to the dissolution of her company, she leaned heavily on tech truisms that treat dogged pursuit of market domination as a virtue. “The minute that you have a backup plan, you’ve admitted that you’re not going to succeed,” she said onstage in 2015. But Shultz and Cheung, who faced legal threats from Theranos for speaking out, push back against the idea of pursuing a high-minded vision at all costs. “We don’t know how to handle new technologies anymore,” Cheung says, “and we don’t know the consequences necessarily that they’ll have.”
The words resonate in the jam-packed auditorium, where students line up afterward to nab selfies with and autographs from the whistleblowers. Kendall Costello, a junior at Stanford, idolized Holmes in high school and imagined working for Theranos one day. Now she’s more interested in learning how to regulate tech than building the next product that promises to change the world. “I really aspired to kind of be like her in a sense,” Costello says. “Then two years later, in seeing her whole empire crumble around her, in addition to other scandals like Facebook’s Cambridge Analytica and all these things that are coming forward, I was just kind of disillusioned.”..But the endless barrage of negative news in tech, ranging from Facebook fueling propaganda campaigns by Russian trolls to Amazon selling surveillance software to governments, has forced Stanford to reevaluate its role in shaping the Valley’s future leaders. Students are reconsidering whether working at Google or Facebook is landing a dream job or selling out to craven corporate interests. Professors are revamping courses to address the ethical challenges tech companies are grappling with right now. And university president Marc Tessier-Lavigne has made educating students on the societal impacts of technology a tentpole of his long-term strategic plan.
As tech comes to dominate an ever-expanding portion of our daily lives, Stanford’s role as an educator of the industry’s engineers and a financier of its startups grows increasingly important. The school may not be responsible for creating our digital world, but it trains the architects. And right now, students are weighing tough decisions about how they plan to make a living in a world that was clearly constructed the wrong way. “To me it seemed super empowering that a line of code that I wrote could be used by millions of people the next day,” says Matthew Sun, a junior majoring in computer science and public policy, who helped organize the Theranos event. “Now we’re realizing that’s maybe not always a good thing.”
.. Because membership costs $21,000 per year, the career fairs tend to attract only the most renowned firms.
“Honestly, I think they’re horrific,” says Vicki Niu, a 2018 Stanford graduate who majored in computer science. She recalls her first career fair being as hectic as a Black Friday sale, with the put-on exclusivity of a night club. (Students must present their Stanford IDs to enter the tent.) But like other freshmen, she found herself swept up in the pursuit of an internship at a large, prestigious tech firm. “Everybody is trying to get interviews at Google and Facebook and Palantir,” she says. “There’s all this hype around them. Part of my mind-set coming in was that I wanted to learn, but I think there was definitely also this big social pressure and this desire to prove yourself and to prove to people that you’re smart.”
Stanford’s computer science department has long been revered for its graduate programs—Google was famously built as a research project by Ph.D. students Larry Page and Sergey Brin—but the intense interest among undergrads is relatively new. In 2007, the school conferred more bachelor’s degrees in English (92) than computer science (70). The next year, though, Stanford revamped its CS curriculum from a one-size-fits-all education to a more flexible framework that funneled students along specialized tracks such as graphics, human-computer interaction, and artificial intelligence. “We needed to make the major more attractive, to show that computer science isn’t just sitting in a cube all day,” Mehran Sahami, a computer science professor who once worked at Google, said later.
The change in curriculum coincided with an explosion of wealth and perceived self-importance in the Valley. The iPhone opened up the potential for thousands of new businesses built around apps, and when its creator died he earned rapturous comparisons to Thomas Edison. Facebook emerged as the fastest-growing internet company of all time, and the Arab Spring made its influence seem benign rather than ominous. As the economy recovered from the recession, investors decided to park their money in startups like Uber and Airbnb that might one day become the next Google or Amazon. A 2013 video by the nonprofit Code.org featured CEOs, Chris Bosh, and will.i.am comparing computer programmers to wizards, superheroes, and rock stars.
Stanford and its students eagerly embraced this cultural shift. John Hennessy, a computer science professor who became president of the university from 2000 to 2016, served on Google’s board of directors and is now the executive chairman of Google parent company Alphabet. LinkedIn founder and Stanford alum Reid Hoffman introduced a new computer science course called Blitzscaling and brought in high-profile entrepreneurs to teach students how to “build massive organizations, user bases, and businesses, and to do so at a dizzyingly rapid pace.” (Elizabeth Holmes was among the speakers.) Mark Zuckerberg became an annual guest in Sahami’s popular introductory computer science class. “It just continued to emphasize how privileged Stanford students are in so many ways, that we have the CEO of Facebook taking time out of his day to come talk to us,” says Vinamrata Singal, a 2016 graduate who had Zuckerberg visit her class freshman year. “It felt really surreal and it did make me excited to want to continue studying computer science.”
In 2013, Stanford began directly investing in students’ companies, much like a venture capital firm. Even without direct Stanford funding, the school’s proximity to wealth helped plenty of big ideas get off the ground. Evan Spiegel, who was a junior at Stanford in 2011 when he started working on Snapchat, connected with his first investor via a Stanford alumni network on Facebook. “Instead of starting a band or trying to make an independent movie or blogging, people would get into code,” says Billy Gallagher, a 2014 graduate who was the editor-in-chief of the school newspaper. “It was a similar idea to, ‘Here’s our band’s vinyl or our band’s tape. Come see us play.’”
..But it’s not just that coding was a creative outlet, as is often depicted in tech origin stories. Working at a big Silicon Valley company also became a path to a specific kind of upper-crust success that students at top schools are groomed for. “Why do so many really bright young kids go into consulting and banking?” asks Gallagher. “They’re prestigious so your parents can be proud of you, they pay really well, and they put you on a career path to open up new doors. Now we’re seeing that’s happening a lot with Google and Facebook.”
By the time Niu arrived in 2014, computer science had become the most popular major on campus and 90 percent of undergrads were taking at least one CS course. As a high schooler, her knowledge of Silicon Valley didn’t extend much further than The Internship, a Vince Vaughn–Owen Wilson comedy about working at Google that doubled as a promotional tool for the search giant. She soon came to realize that landing a job at one of the revered tech giants or striking it rich with an app were Stanford’s primary markers of success. Her coursework was largely technical, focusing on the process of coding and not so much on the outcomes. And in the rare instances when Niu heard ethics discussed in class, it was often framed around the concerns of tech’s super-elite, like killer robots destroying humanity in the future. “In my computer science classes and just talking to other people who were interested in technology, it didn’t seem like anybody really cared about social impact,” she says. “Or if they did, they weren’t talking about it.”
In the spring of her freshman year, Niu and two other students hosted a meeting to gauge interest in a new group focused on socially beneficial uses of technology. The computer science department provided funding for red curry and pad thai. Niu was shocked when the food ran out, as more than 100 students showed up for the event. “Everybody had the same experience: ‘I’m a computer science student. I’m doing this because I want to create an impact. I feel like I’m alone.’”
From this meeting sprang the student organization CS + Social Good. It aimed to expose students to professional opportunities that existed outside the tech giants and the hyperaggressive startups that aspired to their stature. In its first year, the group developed new courses about social-impact work, brought in speakers to discuss positive uses of technology, and offered summer fellowships to get students interning at nonprofits instead of Apple or Google. Hundreds of students and faculty engaged with the organization’s programming.
In Niu’s mind, “social good” referred mainly to the positive applications of technology. But stopping bad uses of tech is just as important as promoting good ones. That’s a lesson the entire Valley has been forced to reckon with as its benevolent reputation has unraveled. “Most of our programming had been, ‘Look at these great ways you can use technology to help kids learn math,’” Niu says. “There was this real need to not only talk about that, but to also be like, ‘It’s not just that technology is neutral. It can actually be really harmful.’”
Many students find it difficult to pinpoint a specific transgression that flipped their perception of Silicon Valley, simply because there have been so many.
- For Facebook it was not only the Russian meddling, but also last year’s Cambridge Analytica privacy scandal, which showed the company’s carelessness with user data.
- At Uber a 2017 blog post by Susan Fowler detailed a workplace rife with sexual harassment, which only compounded growing criticism of the way the company treated drivers and local governments.
- Studies investigated how Apple’s iPhone was becoming addictive among children, causing increased risks of depression and suicide.
- Amazon’s facial recognition software was pitched for government surveillance in 2018, and at
- Microsoft, employees signed a petition protesting the company’s contract with ICE.
- At Google, 20,000 workers walked off the job last November because of the unsavory manner in which the company paid off an executive accused of sexual harassment.
The torrid pace of bad news has been jarring for students who entered school with optimistic views of tech. Nichelle Hall, a senior majoring in computer science, viewed Google as the ideal landing spot for an aspiring software engineer when she started college. “I associated it so much with success,” she says. “It’s the first thing I thought about when I thought about technology.” But when she was offered an on-site interview for a potential job at the search giant in the fall, she declined. Project Dragonfly, Google’s (reportedly abandoned) effort to bring a censored search engine to China, gave her pause. It wasn’t just that she objected to the idea on principle. She sensed that working for such a large corporation would likely put her personal morals and corporate directives in conflict. “They say don’t do evil and then they do things like that,” she says. “I wasn’t really into the big-company idea for that reason. … You don’t necessarily know what the intentions of your executives are.”
- ..Google has hardly been the most damaged brand during the techlash. (The company says it has not seen a year-over-year decline in Stanford recruits to this point.)
- Students repeatedly bring up Facebook as a company that’s fallen out of favor.
- Uber, with its cascade of controversies, now has to “fight to try and get people in,” according to junior Jose Giron.
- And Palantir, the secretive data-mining company started by Stanford alum Peter Thiel, has also lost traction due to Thiel’s ties to Trump and worries that the company could help the president develop tech to advance his draconian immigration policies. “There’s a growing concern over your personal decision where to work after graduation,” Sun says.
“There’s a lot of personal guilt around pursuing CS. If you do that, people call you a sellout or you might view yourself as a sellout. If you take a high-paying job, people might say, ‘Oh, you’re just going to work for a big tech company. All you care about is yourself.’”
Landing a job at a major tech firm is often as much about prestige as passion, which is one reason the CS major has expanded so dramatically. But a company’s tarnished reputation can transfer to its employees. Students debate whether fewer of their peers are actually taking gigs at Facebook, or whether they’re just less vocal in bragging about it. At lunch at a Burmese restaurant on campus, Hall and Sun summed up the transition succinctly. “No one’s like, ‘I got an internship at Uber!’” Sun says. Hall follows up: “They’re like, ‘I got an internship … at Uber …’”
The concerns are bigger than which companies rise or fall in the estimation of up-and-coming engineers. Stanford and computer science programs across the country may not be adequately equipped to wade through the ethical minefield that is expanding along with tech’s influence. Sahami acknowledges that many computer science classes are designed to teach students how to solve technical problems rather than to think about the real-world issues that a solution might create. Part of the challenge comes from computer science being a young discipline compared to other engineering fields, meaning that practical examples of malpractice are emerging in real time from today’s headlines.
Vik Pattabi, a senior majoring in computer science, originally studied mechanical engineering. In those classes, students are constantly reminded of the 1940 collapse of Tacoma Narrows Bridge: A modern marvel was destroyed because its highly educated engineers did not foresee all the possible threats to their creation (in that case, the wind). Pattabi’s CS coursework hasn’t yet included a comparable example. “A lot of the second- and third-order effects that we see [in] Silicon Valley have happened in the last two or three years,” Pattabi says. “The department is trying to react as fast as it can, but they don’t have 30 years of case studies to work with.”
Another issue is the longstanding divide on campus between the engineering types—known as “techies”—and the humanities or social sciences majors, known as “fuzzies.” Though the school has focused more on interdisciplinary studies in recent years, there remains a gap in understanding that’s often filled in by stereotype. This sort of divide is a common aspect of college life, but the stakes feel higher when some of the students will one day be programming the algorithms that govern the digital world. “There’s things [said] like, ‘You can’t spell fascist without CS.’ People will tell you things like that,” Hall says. “I think people may feel antagonized.”
The school’s deep ties to the Bay Area’s corporate giants, long a much-touted recruitment tool, suddenly look different in light of the problems that the industry has created. At the January career fair, members of Students for the Liberation of All Peoples (SLAP), an activist group on campus that aims to disrupt Stanford’s “culture of apathy,” handed out flyers that urged students not to work at Amazon and Salesforce because of their commercial ties to ICE and the United States Border Patrol. (Employees at the companies have raised similar concerns.) “REFUSE to be part of the Stanford → racist tech pipeline,” the flyer reads, in part.
Two students in the group said they were asked to leave the career fair by Computer Forum officials. When the students refused to comply, they say they were escorted out by campus police under threat of arrest for disrupting a private event. A Stanford spokesperson confirmed the incident. “The protesting students were disruptive and asked by police to leave,” the spokesperson said in an emailed statement. “The students were given the option to protest outside the event or in White Plaza. They chose to leave.”
For members of SLAP, the exchange reinforced the ways in which Stanford institutionally and culturally cuts itself off from the issues occurring in the real world. “You might hear this idea of the ‘Stanford bubble,’ where Stanford students kind of just stay on campus and they just do what they need to do for their classes and their jobs,” says Kimiko Hirota, a SLAP member and junior majoring in sociology and comparative studies in race and ethnicity, who participated in the career fair protest. She said many of the students she talked to had no idea about the tech firms’ government contracts. “To me the amount of students on campus that are politically engaged and are actively using their Stanford privilege for a greater good is extremely small.”
The computer science major includes a “technology in society” course requirement that can be fulfilled by a number of ethics classes, and teaching students about their ethical responsibilities is a component of the department’s accreditation process. CS + Social Good has expanded its footprint on campus, teaching more classes and organizing more events like the Theranos talk starring the whistleblowers. Yet the flexibility of the CS major cuts both ways. It means that students who care to take a holistic approach to the discipline can combine rigorous training in code with an education in ethics; it also means that it remains all too easy for some students to avoid engaging with the practical ramifications of their work. “You can very much come to Stanford feeling very apathetic about the impact of the technology and leave just that way without any effort,” Hall says. “I don’t feel as though we are forced to encounter the impact.”
On a Wednesday afternoon, students spill into a lobby in front of a standing-room-only auditorium in the School of Education, where Jeremy Weinstein is talking about the promise and perils of using algorithms in criminal justice. Next year Californians will vote on a bill that would replace cash bail with a computerized risk-assessment system that calculates an arrested person’s likelihood of returning for a court appearance. The idea is to give people who can’t afford to make bail another way to get out of jail through a fairer policy. But such algorithms have been found to reinforce racial biases in the criminal justice system, according to a ProPublicainvestigation. Instead of being a solution to an unfair process, poorly implemented software could create an entirely new form of systemic discrimination. Students were asked to vote on whether they supported cash bail or the algorithm. The class was evenly split. Unlike in most CS classes, Weinstein could not offer students the comfort of a “correct” answer. “We need to deconstruct these algorithms in order to help people see that technology is not just something to be trusted,” he says. “It’s not just something that’s objective and fair because it’s numerical, but it actually reflects a set of choices that people make.”
Though Weinstein is a political science professor, he’s one of three educators leading the new version of the CS department’s flagship ethics course, CS181. Teaching with him are Sahami, the computer science professor, and Rob Reich, a political science professor and philosopher. The trio devised the course structure over a series of coffee-fueled meetings as the tech backlash unfolded during the past year and a half. After discussing algorithmic bias, the class will explore privacy in the age of facial recognition, the social impacts of autonomous technology, and the responsibilities of private platforms in regard to free speech. The coursework is meant to be hands-on. During the current unit, students must build their own risk-assessment algorithm using an actual criminal history data set, then assess it for fairness. “We run it like a talk show,” Weinstein says. “There’s a lot of call-and-response, asking questions, getting people to talk in small groups.”
While Stanford’s computer science program has had an ethics component for decades, this course marks the first time that experts in other fields are so directly involved in the curriculum. About 300 students have enrolled in the course, including majors in history, philosophy, and biology. It provides an opportunity for the techies and fuzzies to learn from one another, and for professors removed from the Valley’s tech culture to contextualize the industry’s societal impacts. In the course overview materials, the moral reckoning occurring in the tech sector today is compared to the advent of the nuclear bomb.
The course’s popularity is a sign that the gravity of the moment is weighing on many Stanford minds. Antigone Xenopoulos, a junior majoring in symbolic systems (a techie-fuzzie hybrid major that incorporates computer science, linguistics, and philosophy), is a research assistant for CS181. She wasn’t the only student who quoted a line from Spider-Man to me—with great power comes great responsibility—when referencing the current landscape. “If they’re going to give students the tools to have such immense influence and capabilities, [Stanford] should also guide those students in developing ethical compasses,” she says...While the early years of the decade saw prominent tech executives like Holmes and Zuckerberg teaching students how to lifehack their way to success, the new ethics course will bring in guest speakers from WhatsApp, Facebook, and the NSA to answer “hard questions,” Sahami says “I wouldn’t say industry is influencing Stanford,” he says. “I would say the relationship with industry allows us to have more authentic conversations where we’re really bringing in people who are decision-makers in these areas.”.. Some of the more critical voices from within the industry are also taking on more permanent roles at Stanford. Alex Stamos, the former chief security officer at Facebook, taught a “hack lab” for non-CS majors last fall, helping them understand cybersecurity threats. He’s now developing a more advanced computer science course, to be piloted later this year, that explores trust and safety issues in the era of misinformation and widespread online harassment. Stamos led Facebook’s internal investigation into Russian political interference on the platform and clashed with top executives over how much of that information should be made public. He left the company in August to join Stanford, where he hopes to impart lessons from his time battling a digital attack that was waged not through hacking, but through ad purchases, incendiary memes, and politically charged Facebook events. “One of the things we don’t teach computer science students is all of the non-technically advanced abuses of technology that cause real harm,” Stamos says. “I want to expose students to [things like], ‘These are the mistakes that were made before, these are the kinds of problems that existed, and these are the company’s reactions to those mistakes.’”
Stamos rejects the idea that ethics is the correct framework to think about addressing tech’s most pressing issues. “The problem here is not that people are making decisions that are straight-up evil,” he says. “The problem is that people are not foreseeing the outcomes of their actions. Part of that is a lack of paranoia. One of our problems in Silicon Valley is we build products to be used the right way. … It’s hard to envision all the misuses unless you understand all the things that have come before.”
While he says that Stanford bears some responsibility for the Valley’s tunnel vision, he praises the school for welcoming tech leaders with recent, relevant experiences to help students prepare for emerging threats. “When I was going to school, computers were important, but we weren’t talking about building companies that might change history,” Stamos says. “The students who come to me are really interested in the impact of what they do on society.”
Stamos regularly fields questions from students about whether to work at Facebook or Google. He tells them that they should, not in spite of the companies’ mounting issues, but because of them. “If you actually care about making communication technologies compatible with democracy, then the place to be is at one of the companies that actually has the problems,” he says. “Not working at the big places that could actually solve it does not make things better.”
The tech giants continue to consolidate power even as they face withering criticism. Facebook’s user base growth accelerated last quarter despite its scandals. Uber will go public this year at a valuation as high as $120 billion. Apple, Amazon, and Google are all planning to open large new offices around the country in the near future. And for all the optimistic talk of working at ethically minded startups among students, creation of nascent businesses is at roughly a 40-year low in the United States. Small firms that enter the terrain of the Frightful Five are typically acquired or destroyed.
It is hard to find a Stanford computer science student, even among the ethically minded set CS + Social Good has helped cultivate, who will publicly proclaim that they’ll never work for one of these dominant companies, as all of them offer opportunities for high pay, engaging individual work, and comforting job security. International students have to worry about securing work visas however they can; students on financial aid may need to make enough money to support other family members. And for many others, it’s not clear that anything that’s happened in the Valley is truly beyond the pale. In that sense, the engineers are just like us, aghast at the headlines but still clicking away inside a system that’s come to feel inescapable. “These events feel too big for most students to take into account,” says Jason He, a master’s student in electrical engineering. “At the end of the day, I think for a lot of students who have been paying a lot of money for their education, if the six-figure salary is offered, it’s pretty hard for students to turn down.”
There is still an opportunity, the thinking at Stanford goes, for every company to do good. Nichelle Hall, the senior who declined the Google interview, landed a job working on Medium’s trust and safety team. But she recognizes that she may have set her qualms aside if Google had been her only employment option. “Some of the feedback that CS + Social Good gets is, ‘Oh, the members end up working for Facebook, they end up working for Google,’” says Hall, who’s been involved with the organization since 2017. “People who care about this intersection of social impact and computer science will go to these companies and do a better job than if they weren’t interested in this stuff.”
Impact is the word that I heard more than any other while on campus. It’s how students framed their decision to go to Stanford, to pursue a career in computer science, to do good in the world after graduating. It’s a word that Hoffman used to describe his Blitzscaling class, and one Holmes used to explain to students why she dropped out of school. “I had the tools that I needed to be able to go out and begin making this impact,” she said. It’s the currency of Silicon Valley, that people spend for good and for ill.
The ability to create impact with a few lines of code has long been what separated software engineers from the rest of us, and turned the Valley into a self-proclaimed utopia of young rebels using technology to save the world from its older, antiquated self. But that’s not the image anymore. Now aspiring engineers draw a comparison between their chosen profession and investment banking. The finance industry wrecked the world a decade ago because of its misunderstanding of complex, automated systems that spun out of control—and its confidence that someone else would ultimately pay the price if things went wrong. You see this confidence in Zuckerberg’s incredulous response when anyone suggests that he resign, and in Google CEO Sundar Pichai’s initial refusal to testify before Congress. And you can see it at Stanford, where the endowment has never been higher, the fundraising has never been easier, and the career fair is still filled with slogans vowing to make the world a better place.
Perhaps this entire strip of land known as the Valley will fully calcify into a West Coast Wall Street, where the people with all the insider knowledge profit off the muppets who can’t stop using their products. If today’s young tech skeptics turn to cynics when they enter the working world, such a future is easy to imagine. But—and this is the hopeful, intoxicating, dangerous thing about technology—there’s always bright minds out there who think they can build a solution that just might fix this mess we’ve made. And people, especially young people, will always be enthralled by the romance of a new idea. “We’re creating things that haven’t necessarily existed before, and so we won’t be able to anticipate all the challenges that we have,” says Hall, who graduates in just four months. “But once we do, it’s important that we can reconcile them with grace and humility. I’m sure it will be a hard job, but it’s important that it’s hard. I’m up for the challenge.”