The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Perplexity's Aravind Srinivas on Will Foundation Models Commoditise, Diminishing Returns in Model Performance, OpenAI vs Anthropic: Who Wins & Why the Next Breakthrough in Model Performance will be in Reasoning

Jun 5, 2024

Aravind Srinivas, Co-founder and CEO of Perplexity AI, shares his insights from prestigious stints at OpenAI, Google, and DeepMind. He delves into the next AI breakthrough in reasoning, questioning whether we are hitting diminishing returns on model performance. Aravind discusses the commoditization of foundation models, predicting shifts in the competitive landscape, and explores the challenges of monetizing AI services. With fascinating anecdotes about talent acquisition and high-quality data, he paints a vivid picture of the future of AI technology.

55:03

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Episode guests

Aravind Srinivas

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Podcast summary created with Snipd AI

Quick takeaways

Model performance improvement requires real reasoning integration for progression.

Scaling models may lead to diminishing returns, emphasizing data curation and efficient training.

Challenges in implementing memory in models need to be addressed for optimal performance.

Deep dives

Models Evolving towards Real Reasoning Era

The progression of models from providing outputs to incorporating reasoning processes by receiving feedback, refining reasoning, and enhancing output is noted. Companies benefit from the advancement towards real reasoning, contributing to the evolution of models.

Continuous Improvement in Reasoning

01:17

Alignment Between Shareholders and Users

01:24

Leveraging Commodity Models for Premium Products

02:00

Value in AI companies lies in people, not just models

01:34

Intro

3min

Navigating AI: A Personal and Technical Journey

16min

The Commoditization of AI Models

11min

Monetizing AI: Strategies and Challenges

14min

Exploring Motivation and Purpose in Career Choices

1min

Evolving Perspectives on AI and User Experience

4min

Navigating Contradictions in Startup Leadership

2min

Envisioning the Future of Knowledge in an AI-Driven World

3min

Aravind Srinivas is the Co-Founder & CEO of Perplexity, the conversational "answer engine" that provides precise, user-focused answers to queries. Aravind co-founded the company in 2022 after working as a research scientist at OpenAI, Google, and DeepMind. To date, Perplexity has raised over $100 million from investors including Jeff Bezos, Nat Friedman, Elad Gil, and Susan Wojciki.

In Today’s Episode with Aravind Srinivas We Discuss:

Biggest Lessons from DeepMind & OpenAI

What was the best career advice Sam Altman @ OpenAI gave Aravind?
What were Aravind’s biggest takeaways at DeepMind?
How did DeepMind shape how Aravind built Perplexity?
What did Aravind mean by “competition is for losers?” What did he learn about talent assembly at DeepMind?

The Next AI Breakthrough: Reasoning

Does Aravind think we are experiencing diminishing returns on compute & model performance?
Does Aravind agree reasoning will be the next big breakthrough for models?
What are the reasons Aravind thinks models suck at reasoning today?
What is the timeline for reasoning improvement according to Aravind?
What does Aravind think are the biggest misconceptions about AI today?

Will Foundation Models Commoditise?

Does Aravind think foundation models will commoditise? What will the end state of foundation models look like?
Why does Aravind think the second tier models will get commoditised?
Why does Aravind think the subscription model will not work for AI models with true reasoning?
Why does Aravind think the application layer companies will benefit from foundation models commoditising?
Why does Aravind think foundation models will not verticalize?
When does Aravind think is the right time to go enterprise? What is his strategy to differentiate Perplexity from its competitors?

AI Arms Race: Who Will Win?

Who does Aravind think will be the winners of foundation models?
What do AI companies need to do to win the model arms race?
How does Aravind think startups can compete against incumbents' infinite cash flow?
What are the reasons Aravind thinks Perplexity’s browsing is better than ChatGPT?
What is Aravind’s biggest challenge at Perplexity today?

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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Perplexity's Aravind Srinivas on Will Foundation Models Commoditise, Diminishing Returns in Model Performance, OpenAI vs Anthropic: Who Wins & Why the Next Breakthrough in Model Performance will be in Reasoning

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Models Evolving towards Real Reasoning Era

Diminishing Returns in Model Performance

Challenges in Developing Models with Memory

Importance of Diversification in Revenue Streams

Innovative Approach to Enterprise Search Solutions

Continuous Improvement in Reasoning

Alignment Between Shareholders and Users

Leveraging Commodity Models for Premium Products

Value in AI companies lies in people, not just models

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Perplexity's Aravind Srinivas on Will Foundation Models Commoditise, Diminishing Returns in Model Performance, OpenAI vs Anthropic: Who Wins & Why the Next Breakthrough in Model Performance will be in Reasoning

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Models Evolving towards Real Reasoning Era

Diminishing Returns in Model Performance

Challenges in Developing Models with Memory

Importance of Diversification in Revenue Streams

Innovative Approach to Enterprise Search Solutions

Continuous Improvement in Reasoning

Alignment Between Shareholders and Users

Leveraging Commodity Models for Premium Products

Value in AI companies lies in people, not just models

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

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