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20VC: Scale's Alex Wang on Why Data Not Compute is the Bottleneck to Foundation Model Performance, Why AI is the Greatest Military Asset Ever, Is China Really Two Years Behind the US in AI and Why the CCPs Industrial Approach is Better than Anyone Else's

Jun 12, 2024

Scale.ai's CEO Alex Wang discusses improving AI model performance with better data, the military potential of AI, comparing China's advancements, and the CCP's industrial approach.

59:54

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Alex Wang

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Quick takeaways

Data is crucial for AI model performance, surpassing compute limitations.

AI could be a potent military asset, potentially exceeding nuclear weapons.

CCP's industrial approach excels in driving technological advancements and military strategies.

Deep dives

AI Technology as a Military Asset

AI technology is considered a potent military asset, potentially surpassing nuclear weapons in military significance. The scenario where countries like China or Russia possess artificial general intelligence (AGI) while others lack it raises concerns about conquest possibilities. Centralized systems like the CCP in China excel in driving critical industries aggressively, showcasing a potential advantage in technological advancement and military strategies.

Continuous Data Production and Human-AI Collaboration

01:28

The Value of AI Services vs AI Models

01:09

Building a Self-Preserving Talent Ecosystem

02:32

China's Advancement in AI Capabilities and Industrial Policy

02:42

Intro

4min

Analyzing AI Model Performance: Compute, Data, and Algorithms

3min

Unlocking Complex Human Cognition for AI Development

17min

Future of AI Services Revenue

7min

Balancing Data Regulations and Innovation for Progress in Industries

9min

Company Acquisitions, Media Challenges, and Founder Branding

17min

Exploring CEO roles, procurement solutions, legal services, and corporate travel management

3min

Alex Wang is the Founder and CEO @ Scale.ai, the company that allows you to make the best models with the best data. To date, Alex has raised $1.6BN for the company with a last reported valuation of $14BN earlier this year. Scale tripled their ARR in 2023 and is expected to hit $1.4BN in ARR by the end of 2024. Their investors include Accel, Index, Thrive, Founders Fund, Meta and Nvidia to name a few.

In Today's Show with Alex Wang We Discuss:

1. Foundation Models: Diminishing Returns:

What are the three core pillars that can meaningfully improve foundation models performance?
Why is data the single largest bottleneck to the performance of models today?
What data do we need to capture that we do not currently, that will have the biggest impact on model performance moving forward?
Will we see the largest companies in the world revert back to on-prem with the increasing security challenges of migrating all customer data to foundation models?

2. AI: A Military Asset in Global Conflict: China + Russia

Why does Alex believe that AI has the potential to be an even more powerful military asset than nuclear weapons?
If this is the case, should we have open systems? Do we not have to have closed systems?
Why does Alex believe that the CCP's approach to industrial policy is better than anyone else's?
How does Alex evaluate the rise of Chinese EV car manufacturers in the last few years?
Does Alex really believe that China is two years behind the US in the AI race?

3. "I Get Fairer Treatment in Congress than in the Press":

Why does Alex believe that the best PR is no PR?
Why does Alex believe that he got fairer treatment in congress than he does in the media?
Why does Alex believe that all founders should look to own their own distribution channels today?

4. Alex Wang: AMA:

What are some of Alex's biggest lessons from Patrick Collison on the impact that a hot company brand has on the ability for that company to hire the best?
Does Alex think Trump is going to win? What would be the impact if he were to?
Why does Alex believe that enterprise software will be changed forever in the next few years?
What question is Alex never asked that he thinks he should be asked?

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