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20VC: Bret Taylor: The AI Bubble and What Happens Now | How the Cost of Chips and Models Will Change in AI | Will Companies Build Their Own Software | Why Pre-Training is for Morons | Leaderships Lessons from Mark Zuckerberg

Oct 2, 2024

Bret Taylor, CEO and Co-Founder of Sierra and former CTO at Facebook, discusses the real state of AI, challenging the notion of an AI bubble. He questions the efficiency of companies building their own software and argues that pre-training models are outdated. As a board member at OpenAI, he claims foundation models are quickly depreciating. Taylor identifies the shift towards AI-driven interfaces and predicts a decline in phone reliance. He also shares insights on leadership in tech, including valuable lessons learned from Mark Zuckerberg.

01:10:39

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Bret Taylor

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Quick takeaways

Bret Taylor argues that investing in pre-training AI models is often inefficient for companies lacking unique capabilities, favoring fine-tuning instead.

Despite skepticism regarding an AI bubble, the economic transformations and potential returns from AI innovations may justify current high valuations.

Organizations are likely to prefer purchasing established AI solutions over custom software development, mirroring trends seen with SaaS adoption.

Deep dives

Skepticism Towards Pre-Training Models

There is a significant skepticism surrounding the practice of pre-training models, especially for companies that are not focused on artificial general intelligence (AGI) research. The belief is that investing in pre-training without unique capabilities leads to inefficient use of capital, much like investing in a custom data center rather than utilizing existing infrastructure. Most software companies should prioritize fine-tuning existing models instead of taking on the additional burden of developing their own. Thus, companies that engage in pre-training without a strong rationale may find themselves regretting that decision as their capital is essentially wasted.

Brett believes in applications that solve solutions

02:03

Foundation vs. Frontier: Choose Wisely

01:35

Embrace the AI Conversation Revolution

01:29

Navigating the Balance Between Rules and AI Creativity

02:17

Intro

4min

From Legal Dreams to Tech Innovations

15min

Navigating the AI Landscape: Challenges and Opportunities

20min

The Future of AI in Consumer Interaction

21min

The Importance of Fundraising and Building Strategic Relationships

2min

Insights on AI Trends and Effective Board Membership

2min

Defining Moments and Leadership in Tech

4min

Innovative Solutions for Modern Business Challenges

3min

Bret Taylor is CEO and Co-Founder of Sierra, a conversational AI platform for businesses. Previously, he served as Co-CEO of Salesforce. Prior to Salesforce, Bret founded Quip and was CTO of Facebook. He started his career at Google, where he co-created Google Maps. Bret serves on the board of OpenAI.

In Today's Discussion with Bret Taylor:

1. The Biggest Misconceptions About AI Today:

Does Bret believe we are in an AI bubble or not?
Why does Bret believe it is BS that companies will all use AI to build their own software?
What does no one realise about the cost of compute today in a world of AI?

2. Foundation Models: The Fastest Depreciating Asset in History?

As a board member of OpenAI, does Bret agree that foundation models are the fastest depreciating asset in history?
Will every application be subsumed by foundation models? What will be standalone?
How does Bret think about the price dumping we are seeing in the foundation model landscape?
Does Bret believe we will continue to see small foundation model companies (Character, Adept, Inflection) be acquired by larger incumbents?

3. The Biggest Opportunity in AI Today: The Death of the Phone + Website:

What does Bret believe are the biggest opportunities in the application layer of AI today?
Why does Bret put forward the case that we will continue to see the role of the phone reduce in consumer lives? How does AI make that happen?
What does Bret mean when he says we are moving from a world of software rules to guardrails?
What does AI mean for the future of websites? How does Bret expect consumers to interact with their favourite brands in 10 years?

4. Bret Taylor: Ask Me Anything: Zuck, Leadership, Fundraising:

Bret has worked with Zuck, Tobi @ Shopify, Marc Benioff and more, what are his biggest lessons from each of them on great leadership?
How did Bret come to choose Peter @ Benchmark to lead his first round? What advice does Bret have to other VCs on how to be a great VC?
Bret is on the board of OpenAI, what have been his biggest lessons from OpenAI on what it takes to be a great board member?

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