In this episode of the Mind the Machine Podcast, we sit down with Michael Steep — former Senior VP of Xerox PARC and Founder of Stanford’s Disruptive Technology Program — to explore how to separate hype from reality in the fast-moving world of AI and emerging technology. Steep explains how the new Alliance for Societal Impact brings together family offices, startups, and universities to drive innovation that solves real human problems.
We also discuss how family offices can complement or even replace traditional venture capital, why “builder capital” matters for long-term societal impact, and how San Diego is becoming a growing hub for innovation beyond Silicon Valley.
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Timestamps:
00:00 Sorting the hype from reality in AI
00:28 Sponsor: Alliance for Societal Impact
00:46 Guest intro — Michael Steep’s background at Microsoft, Xerox PARC, and Stanford
02:15 The rise of exponential innovation
03:13 Founding the Alliance for Societal Impact
04:14 Family offices and their role in technology and social good
05:27 Making innovation practical, not theoretical
06:18 Creating lasting impact beyond conferences
07:09 Preview of the March 2026 conference
08:25 Connecting PhD researchers with next-gen investors
09:10 San Diego’s startup ecosystem and AI opportunity
10:28 Building bridges between regions and Silicon Valley
11:25 Why corporate leaders don’t understand Silicon Valley
12:00 Why San Diego offers a better cost structure and talent opportunity
13:12 What a family office is and why startups should care
14:09 How family offices differ from traditional VCs
15:09 Education, funding, and alternatives to venture capital
16:14 Cutting through AI hype to find real applications
17:19 Partner introductions and expanded discussion
18:33 Bob shares his “why” and the story behind Guitars Over Guns
22:52 Lessons on resilience, education, and legacy
23:40 The origins of his family office and long-term focus
25:07 What makes family office capital different
27:08 Spiritual capital and passion-driven founders
28:23 Connecting innovators and investors for long-term impact
29:18 The global stakes of AI and geopolitical sustainability
30:56 Generational wealth transfer and the risk of lost legacy
32:26 Academia’s role in innovation — from Stanford to MIT and Caltech
34:31 Building cross-university collaboration for real-world results
35:21 San Diego as a rising innovation hub
37:02 Builder capital vs. venture capital
38:13 The importance of trust and legacy in family office investing
39:15 Lonnie shares insights from his books Beyond Business and Beyond Fortune
41:00 How businesses can move from profit to purpose
44:48 Level 1, 2, and 3 business frameworks for societal impact
46:14 Why entrepreneurs must build more than money
47:09 The two sides of AI: code creation vs. human impact
48:57 Why trust and validation are key to ethical AI
50:19 How entrepreneurs can lead with conviction
52:26 Lonnie’s powerful closing story on legacy and gratitude
55:29 Closing remarks