Guests: Ackman associated with Ackman's SPARC, Unity CEO who stepped down amidst a developer revolt, AI discussing skyrocketing AI operating costs. Interesting topics include Ackman's SPARC, Unity CEO's pricing changes leading to revolt, and high operating costs of AI.
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Quick takeaways
Setting the right pricing early on is crucial for startups to avoid customer deception and dissatisfaction.
SPARCS, a new type of Special Purpose Acquisition Company, allows investors to engage with potential acquisitions before committing funds.
Google's AI software is optimizing traffic lights in certain cities, resulting in a 30% reduction in stops and a 10% reduction in emissions for 30 million cars every month.
Deep dives
Importance of Getting Pricing Correct in Startups
The podcast episode discusses the significance of setting the right pricing early on in a startup. Changing pricing can make customers feel deceived. The example of Airbnb switching from an annual fee to a percentage of revenue is used to illustrate this point.
Introduction of a New Type of SPAC
The podcast episode highlights the introduction of a new type of Special Purpose Acquisition Company (SPAC) called SPARCS. This new model allows potential acquisitions to be revealed to investors before they commit their funds. It provides investors with a choice to engage with the deal or back out.
Using Google AI to Optimize Traffic Flow
The episode discusses how Google's AI software is being used to optimize traffic lights in certain cities. By analyzing data from Google Maps, the software aims to reduce delays for drivers and the environmental impact of traffic congestion. The initial results have shown a 30% reduction in stops and a 10% reduction in emissions for 30 million cars every month.
The challenges of changing pricing and surge pricing in the transportation industry
Changing pricing strategies can be difficult, especially in the transportation industry. It is important to get pricing right from the start as it is challenging to change pricing as you go. Companies like Uber had to face the task of explaining surge pricing to their customers, which took time and communication. When it comes to ride-sharing services, removing surge pricing may lead to lower prices for passengers but also longer wait times for drivers. The decision on pricing requires careful thought and effective communication.
GitHub's co-pilot and the challenges of scaling AI services
GitHub's co-pilot, an AI-powered text code tool, has faced challenges in terms of scaling and profitability. Microsoft is reportedly losing an average of $20 per user per month, with some power users costing them up to $80 per month. The problem lies in the fact that as user queries increase, operating costs also rise, resulting in a lack of economies of scale. This poses a challenge for AI services, where the cost of providing the service may outweigh the revenue generated. Solutions may involve adjusting pricing models or finding ways to increase value to justify the costs.
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Today’s show:
Jason is back to break down the news: Bill Ackman's SPARC (1:32), Unity CEO steps down due to developer revolt over pricing changes (15:33), the AI operating cost problem (32:17), the latest on SBF's trial (45:32), and more!