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

20VC: Why Foundation Model Performance is Not Diminishing But Models Are Commoditising, Why Nvidia Will Enter the Model Space and Models Will Enter the Chip Space & The Right Business Model for AI Software with David Luan, Co-Founder @ Adept

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

NOTE

Solving Reasoning and the Future of LLM Providers

The capability of reasoning needs to be addressed at the model provider level because it entails not just using the model for reasoning but enhancing the model's ability to reason, requiring changes to the model itself. While many discuss the commoditization of models, the challenge of reasoning suggests there might not be a race to the bottom. It is anticipated that every LLM player will integrate reasoning skills, but there might only be around five to seven key long-term LLM providers due to significant costs. The solution to reasoning could involve training a base model in diverse environments to tackle complex problems and refining it with human feedback. Despite computers having memory, AI faces challenges with memory, and the reason behind it remains unclear.

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