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

20VC: How to Survive and Thrive in a World of OpenAI, Are LLMs Being Commoditised, Where Does the Value Lie; Infrastructure or Application Layer, How Apple Could Win in a World of AI, How Amazon Could Threaten OpenAI and Why Google Struggle with Des Trayn

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Nov 15, 2023

Des Traynor, Co-founder of Intercom and a leader in AI-driven customer service, discusses navigating the fast-evolving AI landscape. He shares insights on the rapid commoditization of large language models and why startups should be wary of outdated advice. Traynor identifies essential questions businesses must ask to survive in a world dominated by OpenAI and explores how traditional companies can adapt. He also highlights Apple's potential to thrive with a privacy-focused AI approach, contrasting it with Google’s struggles in integrating LLMs.

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ANECDOTE

Intercom's Origin

Intercom's idea originated from a need to communicate with customers within their previous product, Exceptional.
This in-product communication was inspired by a coffee shop owner's direct interactions with customers.

INSIGHT

AI-First is BS

Simply adding AI features to an existing product without changing the core functionality is not true AI-first development.
True AI-first products require a complete reimagining of the space, like in customer support.

INSIGHT

Thin vs. Thick Wrappers

Building a thin wrapper on top of an LLM is different from a full product.
True product value lies in solving the entire user workflow, including integrations and additional features, not just using an LLM.

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Des Traynor is a Co-Founder of Intercom, and has built and led many teams within the company, including Product, Marketing, and Customer Support. Today Des leads all Intercom’s R&D efforts, and parts of Intercom’s marketing.

In Today's Episode with Des We Discuss:

1. From Consultancy to Founding a Unicorn:

What was the founding a-ha moment for Des and the team with Intercom?
Why does Des believe that most startup advice is BS and outdated in 5 years?
What does Des know now that he wishes he had known when he started?

2. LLMs: The World is Not Equal:

What does Des mean when he says the world of LLMs is not equal?
How do the different LLMs very in quality, price and speciality?
Does Des agree with Alex @ Nabla, "the best companies in the future will work with many LLMs at the same time and switch between them for different things"?
To what extent does Des believe LLMs will be commoditised and it will be a race to the bottom?
Would Des be a buyer of OpenAI at a $90BN price? Why not?

3. How to Survive in a World of OpenAI:

What two simple questions will determine if Open AI will kill your existing business?
What 3 criteria will determine if there is a new business to be built on top of OpenAI?
What is the different between a thin layer on top of an LLM and a thick wrapper with real value?
Which traditional incumbents are most vulnerable? What should they do in this new world?
How long does it take for incumbents to really be impacted?

4. The Titans of Tech: Who Wins:

Why does Des believe that Apple could be a massive winner in the next wave of AI?
Why does Des believe that Google have not been impressive and failed to keep pace?
Why does Des think OpenAI should be wary of Amazon? What could they do to threaten them?
What opportunity does Facebook have here? How could Instagram and Whatsapp win?

5. Startup and Investing 101:

Why does Des believe that every founder should write a blog post per week?
Why does Des believe that most B2B marketing sucks? What makes great B2B marketing?
What are Des' biggest lessons from the Hopin journey?
How has Des' angel investing changed in the last year with the rise of AI?