20VC: Why OpenAI Will Become an Infrastructure Play, Why Apple Will Win in an AI World, Why Google is the Most Vulnerable Incumbent, Will LLMs Be Commoditised, Which Startups Are Thin vs Thick Wrappers on Top of LLMs with Jeff Seibert, Founder @ Digits
Nov 22, 2023
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Jeff Seibert, CEO of Digits and former Head of Consumer Product at Twitter, discusses the art of the pivot, the future of AI with OpenAI transitioning to an infrastructure play, why Apple is best positioned to win in an AI world, why Google is the most vulnerable incumbent, the future of LLMs, and the difference between thin and thick wrappers when building on top of LLMs.
The art of pivoting is crucial for startup success and founders should trust their instincts and rally the whole team around the new direction.
Acquiring high-quality data and developing proprietary datasets is a challenge for companies utilizing AI, especially in sensitive industries like healthcare.
Specialized and customized AI models tailored to specific domains and industries are essential, as opposed to building thin wrappers or incremental AI solutions.
Deep dives
Importance of being adaptable and pivoting in startups
Being able to pivot quickly and decisively is crucial for startup success. Founders should trust their instincts and have conviction in their new direction. It's important to get the whole team on board and rally around the new path. Startups should focus on growth, trim expenses, and lengthen runway. While the mortality rate of startups is high, not all failures result in complete loss and there's always a chance for success.
The value of clean and high-quality data in AI
Acquiring high-quality data that is clean and reliable is extremely challenging for companies. As data becomes increasingly valuable, many platforms are tightening access to their APIs and data sources. Startups must prioritize data quality and develop proprietary data sets to train their AI models. Permissioning and privacy concerns around data usage must be addressed, particularly in sensitive industries like healthcare.
Market trends and vulnerabilities of tech incumbents
The tech industry is experiencing rapid changes and platform shifts, with AI playing a significant role. Google is considered the most vulnerable tech incumbent due to its heavy reliance on search and slower response to market changes. Companies like Apple, Amazon, Facebook, and Google are all introducing AI products, but it remains to be seen which offerings will truly succeed. Pricing and commoditization of AI tools are also areas of exploration and experimentation.
The Importance of AI Specialization and Customization
In this podcast episode, the speaker discusses the importance of specialization and customization in the field of artificial intelligence (AI). While there is a trend towards the commoditization of AI, the speaker emphasizes the need for specialized AI models tailored to specific domains and industries. The example of creative tools and finance is given, highlighting the importance of accuracy and precision in different contexts. The speaker predicts the development of a common open-source base model for AI, with tools that allow fine-tuning and customization for specific use cases.
The Challenges and Opportunities of AI Adoption
The podcast explores the challenges and opportunities of AI adoption across industries. The speaker emphasizes the importance of focusing on real problem-solving and market needs rather than building thin wrappers or incremental AI solutions. Startups are advised to differentiate themselves by solving core problems and not just jumping on the AI hype train. The speaker also discusses the potential impact of AI on job displacement, noting that AI will drive productivity rather than complete replacement. Additionally, the conversation touches on the importance of enterprise adoption, data privacy, and the cost of computing in relation to AI advancements.
Jeff Seibert is the Founder & CEO @ Digits, building the future of AI-powered accounting. Digits have raised funding from the likes of Peter Fenton @ Benchmark and 20VC. Jeff previously served as Twitter's Head of Consumer Product, a position he came to following the acquisition of his prior company, Crashlytics. Today, Crashlytics is the de-facto mobile crash reporting solution for iOS and Android and runs on over 6 Billion monthly active smartphones worldwide.
In Today's Episode with Jeff Seibert We Discuss:
1. The Art of the Pivot:
What are Jeff's biggest pieces of advice to founders pivoting?
How do you know when you have enough data to make the decision to pivot?
What are the single biggest mistakes founders make when pivoting?
2. AI: Who Wins and Who Loses:
Why does Jeff believe that OpenAI will transition into an infrastructure play?
What are the most significant challenges OpenAI will face moving forward?
Why does Jeff believe that Apple are best positioned to win in an AI world?
Why does Jeff believe that Google are the most vulnerable incumbent?
What would Jeff do if he was CEO of Google?
3. LLMs: What Happens Now:
Will we see the commoditization of LLMs?
What are the biggest misconceptions people have on training and fine-tuning LLMs?
Will we see LLMs increasingly specialise to vertical-specific models or will they remain horizontal?
What is the difference between a thick and a thin wrapper when building on top of LLMs?
4. Angel Portfolio in Review:
How many angel checks has Jeff written? How many failed? How many home runs?
Does Jeff believe that company valuations are being kept artificially high?
How did Jeff make 200x selling through the secondary market for a now failing company?
What are Jeff's three biggest pieces of advice for angels today?
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