So this from our friends over at Deep Gram I don't know if you remember this I'm G just play a little snippet Steve There's a thousand bloggers at Microsoft And uh bloggers at people at Apple I Understand are not allowed to blog you Remember this right yeah deep gram has Release this new tool where if you give It an audio file they can do an Intelligence analysis of it so you can Basically have it break out the intents Of that conversation so 25% they felt Was about requesting clarification about Blogging yep 9% was about the RSS feed 11% was about inquiring more about Podcasts and then the last bit was the Zinger about the email oh ask for Zinger Email I love it that's hilarious got Remember the end of that one I made the Joke in the audience left yeah wow this Week in startups is brought to you by LinkedIn ads to redeem a $100 LinkedIn Ad credit and launch your first campaign Go to linkedin.com thiswe startups Koda A new Doc that brings words tables and Teams together all your valuable data Plans objectives and strategies in one Place go to Coda.io twist to get a $1,000 credit and Wistia is the all-in-one video platform For business with tools that help you Create manage and measure the impact of Your videos try wistia for free at Wistia.com
Startups all right everybody welcome Back to this week in startups I'm here With my gu and deep mandra he works at a Company called grock yeah definitive Intelligence was acquired by grock G Q Q Is your grock gr K is the gro that Elon Spun out from Twitter so just so we're Clear how's uh your two weeks into the Acquisition how's it going so far I see Uh the number of developers using the Gro platform has gone parabolic or it's Doubling every couple weeks it's going Really really fast you know we are over 60,000 Developers over 15,000 apps that's Awesome yeah we are rocking and rolling So it has been really fun uh we're Adding capacity really fast it is a bit Of cat and mouse for us because every Time we add capacity people consume it Yeah as fast as we can and so you know Love all the support we're getting I was Actually at a hack of on yesterday uh That we we kind of co-sponsored with a Mraw team the team I saw that was that In the city yeah it was it's a great Space there I don't know if you've been There Shaq 15 wow in the yeah it's it's The second level of the fery Building and I didn't even know this Thing existed it's a little bit like a We work so house so you buy a membership I did hear about this yeah and you know Here's the thing like there's so much
Space available with when you go through The boom bus cycle and I've seen this Before during the dotom and the Great Recession people after the dotom bust or After the Great Recession we're like you Know there's tons of office space for Like 1,200 bucks a month the five of us Could be in a cool office maybe we'll Spend 15 grand a year having an office It would be fun right then it became oh My God you know my wiiw for like five Desks was like $9,000 or something it's Like yeah okay we're spending $100,000 a Year on this just makes no sense what Are we doing Yeah and that boom bus cycle is now We're in that TR where people are like Oh there's space available and it's free Basically or close to free or yeah Minimus in cost oh yeah might as well Get a space and so that's really Interesting when you think about space People get inspired by space too they See a space they're like wouldn't it be Cool if a bunch of people came here and Did something like a restaurant this Space was a 10 out of 10 it was a 10 out Of 10 it's the best space I've ever seen In the city for like a startup slash Kind of uh you know Community Vibes yeah So I think we're GNA start to see a lot Of that you know because why not this Weekend startups AI event there maybe oh Yeah we should totally do it yeah
Absolutely easy to do we just pick a day And then we just put a bunch of speakers And we're done great idea some demos too So we'll get that going okay yeah do is Just demo or die kind of situation a Couple of news items J news yeah okay so Do news and then demos okay so quick News in the AI world yeah and so I would Say there's like one interesting thing Which is the CEO and founder of Stability diffusion uhad he basically um Stepped down from the role oh and you Know that that's that's one thing of Itself let's not speculate too much on That I think he said something Interesting in his comment in stepping Down which is he feels as though there Is yeah and exactly this is it because You're not going to beat centralized AI With more centralized Ai and so I find That to be a really interesting comment In terms of um you know stepping down And you know they're open source Focus So I'm not fully sure well I can Speculate on what he's trying to mean Here but I want to see what what what You have to think when you read that Comment open source first I met him uh The gentleman in question briefly when I Was in the Middle East he was in Dubai And we were at oh okay awesome a salon Together seemed like an interesting cat But yeah he's doing an open- sourced Image Creator right and what is the
Market for these things I guess is going To become the question so I think we're Past the honeymoon phase and we're now Getting into brass tax and so what Investors are starting to ask I believe Is okay how many subscriptions do Consumers and businesses need to AI okay If you are using notion I'm paying extra For AI we're using Zoom right now we've Got the AI summary AI Companion I pay for everybody on our Team to have open AI I paid also for Po And you know now I'm like I'm pretty Promiscuous in trying all these things But I do think businesses are going and Investors are going to start to say okay What what's what's essential what do we Need what are we going to use yeah and Maybe the idea is not many people need Image generation yeah that's like a Niche thing you know how often are you Creating images maybe for fun you and I Could sit there and yeah you know go Crazy all day but I think maybe we only Need two of these in the world three of These in the world maybe we don't need 20 people making Image Creators maybe There's just not that much work and so The one built into Adobe suite right They have one that's legal and built Into there then there's Dolly you know Stable diffusion maybe there just Doesn't need to be that many of them and That's my read into to his comments
Which is we can't compete with open AI That would be my read open AI plus Microsoft Plus Google Gemini or maybe The Google Apple Alliance which seems to Be emerging we talked about last week so If you have these two competing factions Open AI plus Microsoft and then over Here you have Google and apple and then The open source community and the Google App and then you have the meta open Source Community like maybe there's Enough going on here that we the world Just doesn't need number four or five And maybe they yeah he believed they Would be number five and you know it's Like this I watched this happen with Uber lift door Dash just eats Postmates Side car there there was a long tail of People going after that space and at a Certain point consolidation happens and This has been a rapidly evolving space Maybe we're witnessing consolidation Happening or or capitulation you know What that that was a very similar read To mine which is the big folks are Already here you know it wasn't hard for Them to get there from technology Standpoint and it's very difficult to be You know like you said third you know Maybe it's not even third but fourth Fifth sixth player because you've got The consumer folks covering it off You've got the original Pro folks Covering it off with Adobe and then you
Have the upand cominging new folks Covering it off with mid journey and so Really like you know to your point that It's it's difficult to win in that space And maybe you know he'll come at this From a different point of view Um as he rethinks uh what he's going to Do next yeah or there could be something Else to him leaving the company maybe People didn't want to work for him we Don't know right you sort of speculated Who knows why he's leaving the company When CEOs leave a company there could be Burnout personal issues that they've got Could be you know bad news inside the Company maybe people don't want to work For them maybe they're not a great Manager could be any of those things and So sometimes when people leave the Playground they take their ball with Them So he could be leaving the playground or Being pushed out of the playground he's Like I'm going to take my ball with me This space sucks you know but it might Just be he couldn't compete maybe he Just didn't have the energy to fight This fight for the next five or 10 years Which would be a mature thing to do if You don't think you can fight a dog Fight for five or 10 years to just be Honest about it and just be like it's Hard what's the point you know and Sometimes you have to face that as an
Entrepreneur I've had to face it in my Career many times where like you're Playing a certain game on the field the Game changes I did a print magazine and Then the world didn't want print Magazines and I did blogs and the world Didn't want blogs and I did podcasts Maybe someday the world doesn't want Podcast and want short actually the the World wanted blogs you sold too early There yeah you know I had a little bit Of scar tissue from not selling too late The first time so that was like my 18 Months in I'm selling this thing and I'm Getting my first check so I don't have To sweat the world wanted Mahalo just Google didn't want you to be it uh and Now we have a version of it and with AI So and perplexity yeah perity is using The same concept we're using just AI Wasn't ready 12 years ago when I thought You know these 12 Blue Links would be Better if it was like content plus Services plus Q&A I mean I had the right Idea I just was way too early and I Think that's like you can forgive Yourself as an entrepreneur I think is Important message here sometimes you're Too early sometimes you sell too early Sometimes you're too early to the party Sometimes you're too late to the party And who knows what's Happening Here Yeah But it does seemed like um maybe there Just wasn't an opportunity maybe they
Didn't perceive there was a huge Opportunity and also with the sale of um To Microsoft of um High what was the Parent name um last inflection Inflection that feels like okay and we Said this like how many large models do There need to be how many assistants do There need to be yeah you know it does Seem to me like vertical I services in AI will win the day and then there'll be Three or four of these foundational Models and that's exactly what's Happening right navigating the BTO be Maze can feel really tough huh you're Trying to hit the mark with all those Top tier Executives you want them to pay Attention to your Enterprise product but Where can you find all those big fish The whales the ones who call the shots And make the buying decisions for Corporations for startups and everybody In between well here's where LinkedIn Ads is going to solve that problem for You and I've used this it is one of my Secret weapons LinkedIn means business Business equals LinkedIn in people's Minds when you're on LinkedIn you're in The business mindset so you're going to Really be thinking about business Products and services you're open to Those opportunities and Linkedin Recently passed a billion users 180 Million of those billion are senior Executives 18% but hey we all know about
The 1% 10 million seite Executives That's your CFO CTO CIO these are the People who are always looking for a new Product or service to make their Organization run better but they are on LinkedIn that's why linkedin's ad Platform delivers two to five times Greater return on investment compared to Other social media platforms so easy to Understand why this is because this is Where all the business people are and They're in that business mindset super Easy call to action make your B2B Marketing everything it can be and get a $100 credit on your next campaign go to Linkedin.com thisweek in startups to Claim your credit that's linkedin.com Thiswe in startups no spaces no dashes Terms and conditions apply cuz they're Giving Hy J you always is this magic to Do it a great segue into just the last News piece because I I do want to touch On it which is A16z released a really good report and I Just want to touch on a couple things For all the Builders out there because We we do this for a lot of Builders and And yesterday a lot of folks came up at The hackathon and they were like oh it Was so awesome you guys do the demos so They were really cool to see it but you You should read the whole report but I'm Going to touch on three interesting Bullets from this report and it's
Generative Val in the Enterprise first You can see here the amount of average Spend for uh llms is going from 7 Million last year to18 million this is For Enterprise companies so large Companies are saying their average spend In 2023 the average spend across Foundation model API self-hosting and Fine-tuning models with 7 million across Dozens of companies we spoke to so they Spoke to a couple of dozen companies Yeah it does look like the average spend Per Enterprise yes went from 7 million To 18 million is the estimate so the Actual was seven so they're two and a Half times in it what would this be the Equivalent of the cloud computing Revolution even faster right like you Know this this is a kager which is like You know growing really really fast Right and I think it's faster than Anything we've seen before and look like You know they call it's like anywhere From 2 to 5x right and more workflows Going into production so this is good For folks that are building okay I Thought this was interesting in terms of Like where Yeah where the money is for gener where Is the money for gener AI coming from so They ask 25 Enterprises I'm guessing Here it says dozens they didn't say two Dozens they said dozens dozens of Companies okay oh dozens of companies
Yeah so when you say dozens of companies I would mean like 24 36 companies Probably so in the second one where do They allocate this from or reallocate so They're saying there the budget doesn't Exist well one company SED saving 6 Million for each call served $6 for each Call served by their llm power customer Service for a total of 90% cost savings As a reason to increase their investment In Ji8 full okay so using one anecdotal Story there got it but what I would say Here jcal is when you're building in the Earliest phases and I've seen this in You know two previous lives I've seen it When I had a mobile business and I had a Cloud business a lot of the early budget Comes from the Innovation teams because They're the ones within the Enterprise That you know are tasked with looking at This but to see that we're already at a Place where 75% of the budget is not Coming from Innovation this is really Good got it so this isn't the Innovation Budget where like experimental stuff Goes okay you know Vision Pro comes out AR VR okay we'll put a little bit of Money into that okay yeah here 24% Innovation 76% other business unit Budgets 21% is the next highest that Means somebody in a business unit like Customer support said hey want to Allocate my budget towards this and away
From something else reallocated from the It group 15% new net new it budget for Llm so that's 19% so somebody said hey I Need to increase our budget yes give me Some money for this reallocated from Other AI 133% R&D product development 8% So yeah it's Definitely immediately having an impact On Enterprise is your point I would Can't argue with that here yeah and I Have one more that I want to pull up and Then we'll we'll get into our demos here Which is interestingly showing you know Which models are Enterprises using and So let me bring the share back here real Quick by the way I found it in the first Paragraph here over the past couple of Months we've spoken with dozens of Fortune 500 and top Enterprise leaders And surveyed 70 more to understand how They're using buying and budgeting gener Of AI we were shocked by how significant The resourcing and attitudes towards gen I had changed over the last 6 months Though these leaders still have some Reservations about deploying gener of AI They're also nearly tripling their Budgets expanding the number of use Cases that are deployed on smaller open Source models and transitioning more Workloads from early experimentation Into production that says to me that They know it's not ready for prime time But they're trying to make it ready for
Prime time so there's some like Recognition that it's hallucinating how Would you interpret that I would I would Say that they are they're ready to push Into production okay and these next two Charts which will be the FES and we Won't go over the whole report but yeah This is really fascinating because you Can basically see which model providers Are Enterprises using ah and you can see Here that um you know overall um you Know open AI still the clear leader Which is you know 100% of the Enterprises are trying open a are open AI is that's that's impressive so 70 of The 70 it's in fact 70 companies or 70 Leaders said they were Yeah 63% said they were using Microsoft Goog Google Google yes um and 50% of was Testing 13% of it was production yes Llama 30% testing 11% production Anthropic 34% we're using but not in Production mistol 177% Co here 177% so Basically yeah people are uh testing Everything and slowly putting stuff into Market makes sense and then the last one And we'll go we'll get into our demos Which is um right here open source is Booming and you can see here where the Shift is really happening um across you Know this little uh pie chart where okay So we have a pie chart here with three Sections and the three choices are one
For those people who are listening yeah Yeah the the the three sections are no Plans to increase open source that's the Uh that's 18% then 41% say they will Switch to open source when the Performance matches and 40 another 41% Saying will increase or already use Majority open source this is really Important so this means 82% of Enterprises want open source they Don't want a closed model Yes wow you know this is so interesting Because you remember in the early days Of Open Source 20 years ago everybody Was like yeah nobody wants to use it now Enterprises are basically defaulting to It yes it's it's incredible what open Source has done and this means you would Be Long llama Anthropic um drop not open no no you'd Be long llama llama you'd be long one of The mistro models mix TR yeah right and You would be short the opens Google There's an open source Google one yeah It makes sense I think this technology Is so Powerful that putting your entire Company in the hands of Microsoft and Openi or Google and Google Cloud some Folks might feel uncomfortable with them Having so much say on what they're doing Right that's how I would read it and They want to be able to not be not have
That dependency right so that's what I Think I would read in here is open Source means not depend Not taking a huge risk which is so funny When you think about it because we used To have this expression nobody ever got Fired for um Microsoft picking IBM and Then Microsoft so you know now it's kind Of the opposite nobody ever got fired For picking an open source project Because with an open source project you Know that that you can't get rug pulled You can't get price gouging you know You're just fascinating which which Makes it even more perplexing why open AI went closed because the statistics Here are showing don't go closed right That's what the statistics are saying The statistics are saying the market Enterpr at least the Enterprise Market Wants this solution uh in a certain way And people are just ignoring them so There you have it folks the great Ignoring of the consumer Base okay listen I got a lot on my plate Got to do a couple podcasts I got found University launch accelerator and all my Personal life and you know things I want To do so there's just a lot but I'm able To manage it all with an amazing piece Of software called Koda Koda is the All-in-one platform that combines the Best of documents spreadsheets and apps Here's an example we use Koda to run the
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Believe definitely in Silicon Valley More than other places which is Mo and You know obviously in consumer that Makes you know it's important but I Think in Enterprise the notion of moat Being tied to Something proprietary or closed is a bad Idea but you know folks maybe tend to go In that direction versus something that Is like you know performance or price You know so this lock in thing I think Silicon Valley and SAS and everything That's happened in the last 10 plus Years are still working through this Yeah makes sense all right let's do some Thees let's do it yeah of course let's Go well I mean we're starting to see Where the industry is going to wind up And it's it's you know which if you dve Tell the two stories like stable Diffusion then is an open source project With a clo with a hosting project that Would argue that they were more valuable Because Enterprises would want the the Open source solution so there's Something with the founder leaving That's a little bit was that the same Founder who um allegedly screwed his Co-founder out of their shares and Bought a bunch of the shares back from Them there was recall some kind of there Was some Story related to yeah getting Rid of a a co-founder and then getting All their Shar
And so okay let's get started okay first One today I really like this one um they Are under a lot of pressure today Because it's it's been going viral what It is it's called gatekeep doai okay and What they do is uh you you generate Something I I did this already because It's it's it's been slammed today but You ask it for a concept they have some Pre-built ones here uh I did one myself Which I'll share here which is tell tell Me about put options because I know you Know I know I know how much uh J trading Loves you know trying to I don't do Options trading I get to that Nancy Pelosi level here of taking more risk Just follow just follow her trades there You don't even just follow her trades so What I did was I just said tell me about Put options and what this did was and I Really like this a lot it created a Little short video I'll play it in a Second it gave me a chat about it and Then it gave me a little uh summary down Here in a transcript so I'm just going To play this for me 30 seconds put Options are Financial contracts that Give the owner the right but not the Obligation to sell an underlying asset At a specified price known as the strike Price within a specific time frame let's Visualize how a put option works imagine We have a stock whose price is Decreasing over time okay I'm not gonna
Play the whole video I think this is Awesome it made this explainer video the Graphics the voice over and the graphics The voice over and gave me a little chat So imagine you know you're trying to Work through trying to understand Something or you're doing something with Your kids when they're trying to learn You know this is a real combination of The video the chat experience it's KH Academy box it's like a con Academy oh a Good way to put it yeah yeah it's it's AI Con Academy let's tyy I want to try One um explain to me how a keystone in An AR Arch Works to me uh in uh and Arch Works it does take them a few minutes And well because it's generating a video This is generating a how-to video that You could then publish on YouTube and Now YouTube is going to be flooded with These and hopefully they're correct yeah Because if they suck then and it's wrong Information that's not helping so this Is where synthetic data or the moment Where data can be degenerative data Revolution is going to pollute the hell Out of the internet so it's almost like You want to have the human internet and At 2023 and going forward YouTube is Going to be filled with this stuff now Is this stuff been checked is it correct Or not we're GNA have to create a whole Cleanup Crew because as we know it gets Things things wrong all the time and so
What if this is wrong what if it Explains the Pythagorean theorem wrong What if it explains how you know the Keystone Works incorrectly and now we Start pling the internet I my replies Are frequently on X Twitter generated by AI I can tell somebody's got an AI oh Really reply bot and it's like oh you Enjoy beef ribs in Texas beef ribs are a Nice thing to enjoy I hope you enjoyed Your beef ribs continue enjoying your Beef ribs from Terry black and I'm just Like uh what's going on here yeah okay And it's obvious like we're g to pollute The hell out of the internet uh with This garbage and so I I'm just worried About YouTube the incentives are really Messed up right now so we had content Farm Which was definitely not part of but There was like eow and other people who Were doing content farming which was Just throw anything on a page get SEO Link it together grab the ads and if you Don't answer the question or if it's Incorrect that's even better because Then people click on the ads so if it's A frustrating page what do you do when You land on a frustrating page that's Supposedly going to answer your question Yeah you either hit the back key and go Back to Google or you click one of the Google or the ads on the page yeah and So that's what led to the whole Panda
Update and Google not wanting to link to Content sites that were scaling up Content and it killed Mahalo and a bunch Of other sites along with it if it was Accurate what was their issue with that Their issue was that there were a group Of people who had figured out SEO and Had to build a large number of content Pages and that people would start going Direct to those and they just didn't Want these content networks to take over The top ranks and so they just said this Is the maximum amount of traffic that Can go to each site and they wouldn't Tell you what was going on so we went From having like the n as but one silly Example how to cook salmon we had the Number one result on and for some period Of time Mahalo just had you know like Literally 25,000 people a day day in and Day out going to that page so we just Started investing more in that page more In that page than we did how to cook cod We do like little how-to content and Then links to the best stuff on the Internet but they started to consider This like a little bit competitive and Then they started taking from other Sites content and then putting it in the One box so their vision of the world was Don't go to these Pages we'll just put The information on the Google search Results so they started getting Competitive and you you see that today
Where Google is competing heads up with A lot of the sites that they used to Link to so you used to get stock quotes Sports scores recipes shopping at other Websites those got built into the Google Search results right if you ask for you Know if you ask for a stock price Google Just gives it to you if you ask for Sports score it just gives it to you if You ask for a recipe it just gives it to You you're asking like what temperature Should medium rare salmon be it just Gives it to you yeah and so yeah you Know this is the pollution of the Internet is going to be crazy in the Coming years and that that's where're Figuring out if this is in fact AI Generated or human generated and then as Long as it's correct then it doesn't Matter but that's the question I have For you is when when do we think we can Start trusting the results from Ai and In what sectors it's just the the amount Of wrong information is the challenge I Have right now with fully embracing a Lot of this Let's do let's do a real Time test this it just got generated This is the one that you asked how a Keystone and an arch Works yes yeah Here's here's the summary okay the Keystone is a wedge shaped Stone placed At the top of an arch it's roll should Weight even a little bit faster here Let's play faster welcome to this video
Explaining the importance of the Keystone in an arch an arch is a curved Structure that supports weight above an Opening and it has been a crucial Architectural element for Centuries let's first look at an arch Without a keystone the stones in the Arch push against each other and rely on Friction to stay in place it's not an Arch now let's introduce the Keystone The Keystone is the final wed shaped Stone placed at the top of the arch when The Keystone is inserted it locks the Other stones in place by Distributing The weight evenly the Keystone the other St outward provid to the arch bunch of Bricks on top of each other totally bu I Think it didn't get the drawing right But it's its concept is correct but Concepts correct so proving my is Crucial for maintaining the Integrity of The Arch ensures it strength and Stability in terms of drawing it it got The other parts correct yeah yeah I mean For anybody who doesn't know if you Think of an arch there's a keystone That's the yes Middle Stone all the Stones lean into that and all the Pressure goes into that stone and keeps The arch up and for those of you who are Listening not watching this video just Showed a stack of squares yeah with a Triangle laid in the middle of them it's
Exact opposite of how it works Gatekeep doai great but I guess garbage In garbage out or good data in garbage Out like it's almost like we have a Problem here where get good information Into these Llms and then they screw it up so still Work to be done here I think it got the Information from Wikipedia relatively Well so the copy wasn't bad but the Drawing was terrible and wrong so I Don't I don't trust any of this stuff Right now Okay so your boss tells you you got to Make a product tutorial and a customer Support video and I know what you're Thinking I need a video producer I need An editor and uh man I need a new boss Well think again with Wisa anyone can Make professional quality videos right In their web browser do you need a Script just use wisti as AI script Generator and it will work magic need to Be on camera use wisy as built-in Recorded to capture your face your Screen or both at the same time and when It comes to editing wisy as text-based Editor makes things a breeze just Highlight the mistakes and hit delete Take out those mistakes the MS the AZ The hiccups whatever you got you can Edit it in real time and Export your Video you can even add music with wistia Smart Tracks and these are composed
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And and learning an arc there is plenty Of videos on YouTube right now where you Can learn it so this is D for dumb I Give it a d okay what You make you dumb no no I think the Concept's an A okay I love the concept That it would you know make me a unique Video of anything I'm trying to Understand it just it's worthless if It's not correct it's actually harmful I Might go to an F now I'm talking myself Back into an oh my oh my God I think um You're so kind it's no it's it's hard to Build these things Jake how You're I'm frustrated on a Monday day exactly um you know for me It's a c because you know if there's not A way you know for the system to tell You this might not be right and so they Should maybe provide some some type of Score on that one to say we're not Really sure because um like I said I was Playing around with the pre-built ones And the stock option one was pretty good Um but you know that one wasn't and so U But that's that's an easy thing for the Team to iterate on is provide a Confident score or something like that And look they did do one thing and uh When I refreshed the site they said they Did change their model because they were Getting overloaded maybe their old older Model is not running as well they might Have gone to a cheaper one since
Everybody came there to make their Anyway I'm giving you guys and gals Whoever's over there they them the whole Group as a unit could be one person it Could be a hundred but I'm G to give I Just want to share it it says right up Here on this you see that right yeah Yeah our servers are overloaded so Anyway if it was correct I would have Given this like a B plus an A minus like It's really a great compelling concept So I I I but I give it a d on the Execution but I think the concept is Wonderful so I I grind it out and get The results to equal the vision like Anything else listen first Tesla was a Little rough too man yeah the Roadster Was was a bit of a rough experience uh And you know no charging Network none of That stuff right you were just no Supercharger you know and something Range it was a little rough you know When you hit a bump pothole in the Roadster you'd feel it and your teeth You know was like Bo it was a hard Experience you know I drive that car Sometimes and then I drive my model Li And it's like oh my God you want to talk About about going from like a d to an A+ Like yeah there you go you know the Roadster was the D like it was it was I Mean but it was also delightful in that It was like so py or whatever but you do Have to make it comfortable for
Everybody and it has to be accurate and Safe and yeah here we go so you're on Your journey I think how long before These things in your mind start to give Enough consistent good answers that you Were trusted to teach your kids so I was When would you trusted to teach your Kids for the SA So here's my issue I think if you asked Me the question three months ago I would Have given you my really conservative Sor my aggressive answer like oh within Six months this will be solved there's a Weird thing that's happening where and I'm probably not like uniquely Positioned to say I'm being fair about It because of you know what I've been Working on for the last couple years Yeah where so many people just blindly Rely on whether it's chat GPT or which Llm of your choice or something like This That it's there's like this virtuous Cycle of people saying oh you know what Let me just count on the llm to produce Whatever it does and I think now there's So many of these things out there that Do that um it's been stretched out so I Would have said by the end of this year We'll be in a spot where you can trust These things and it'll be Grounded um now I think that's going to Be harder because there's so much being Created that we're have to go through
The first Arc of many many people um Kind of dealing with that and it's a Unique thing for computers because we Never really count on computers to be Fundamentally probabilistic right you Know you don't break out a calculator And go like that might not be all the Time you know so yeah no I mean the Whole this is the conundrum of this Technology is we're so used to that if You put numbers in a spreadsheet there Is no way for the spreadsheet to say you Know cell A1 Plus cell B1 equals cell C1 Like there's the formula can't be wrong It's just it's not possible for the Computer to do a wrong formula in Excel Or yeah for spell check not to work like We just fundamentally when you hit the You know when you type the word the' we Expect it to be Correct and you know if it's not correct Like your keyboard's broken like Something there something really wrong That's easy to identify here it's like You you get these hallucinations or Whatever it's like it's almost like a a Drunk human you know like if you were to Had a great let's say you had a great History professor and they got hammered Yeah so like you were listening to them Like they gave a great talk like and Then that night they got bombed and You're at you know uh the kitchen table And they're drunk out of their mind
Telling you history and it's not Accurate yeah but during the day they Told you really accurate stuff like That's what we're trying to deal with is This Jackal and hide I think we we got a Lot of work to do here I don't know if It's two more jumps or three more jumps But we're we're not being I think harsh Enough on accuracy and so this needs to Be the year of accuracy I'm going to dub This the year of accuracy I'm looking at Every Single demo going forward accuracy is my Number one thing I'm not wed by it Anymore I'm not wed by what I just saw I Like the vi I'm W by the vision but I'm Judging things on accuracy going forward I'm just letting people know starting Today March 25th 2024 when it comes to Building quickly and like you know Putting things out there when it comes To accuracy that's something you really Should like you want to go fast but I Think on accuracy it's important time For accuracy to play a role here no more No more gifts of uh you know a pluses But you got not accurate I want to see a Little accuracy okay let's go to another One okay okay so the next one you'll Hopefully get a kick out of this one Jay This a good one so this is from our Friends over at Deep gram and I don't Know if you remember this I'm going just Play a little snippet Steve there's a
Thousand bloggers at Microsoft and uh Bloggers at people at Apple I understand Are not allowed to blog and okay you Remember this right you're uh basically Asking about blogging at Apple right and What what's gonna happen so deep gram Has released this new tool where if you Give it an audio file what they can do Is they can do basically an intelligence Analysis of it so you can summarize it Topic detection intent detection and Sentiment so I took that video and Basically you obviously you have the Summary which is the speaker discusses The issue of blogging at Apple and the Need for employees not to spread false Information ironically right y um they Also asked the other speaker if they can Add a feeder into their podcast like I Think you were talking about something About open I was talking about iTunes Supporting podcast back yes 10 plus Years ago exactly so now what they have This tool is so you can basically have It break out the intents of that Conversation so 25% they felt was about Request requesting clarification about Blogging yep um 9% was about the RSS Feed 11% was about inquiring more about Podcasts and then the last bit was the Ziger about the email oh ask for Zinger Email I love it that's remember the end Of that one I made the joke and the Audience left wow
This is really scary how interesting This is and then you have Word level Sentiment wow yes so negative positive That's interesting yeah so this is I Think really Important um this is really cool yeah Because you know you could take an Entire podcast yes and run it through This and you know start to understand I What I and people are doing this for Sales calls obviously with okay things Like gong or whatever yeah so you know Feel like this is another one of these Really cool tools for you to understand How you're being Perceived and um I could see this Working really well we do 60 or 70 calls With Founders per week and we invest in Okay on average two companies a week Right um okay so if you're doing 70 Calls um you know and we're doing two Investments a week you know it's like One in 35 eventually wind up getting an Investment now they had to beat out a Bunch of people to even get on that Phone call y yada we have the Accelerator but we now are recording These calls um and transcribing them Etc So we really good to have the associates Do this and we could see yes you know Both the Associates at our firm we we Call them raas uh researchers analysts Associates those are the three levels You start as a researcher out of school
You become an analyst after 500 calls And then you become an associate after a Thousand calls or something like that All right is the program uh created at Launch so I would.com here you go I Would like to actually have run some of My raas through this and and see how They are perceived if they're perceived As smart or not and then I the way I Hire people now is I have them I have Somebody on our team pitch do a mock Pitch and I pay people a hundred bucks Who were considering hiring to do a call And we record it where they're give them The script of how you take a a pitch Call right an introductory call so we Pay them for that but I would run it Through this now so I'm gonna use this I Give this an a um this is a for awesome Yeah and awesome yeah a for awesome okay Great and it's awesome and it's and it Is accurate yeah and you know that one's Particularly interesting because it Shows how the sentiment changed over Time throughout the you know very short Conversation was like a minute long yeah Q Anda at a conference you know bit Aggressive and then obviously you know The uh Steve says um hey you'll be able To add whatever you want we're working With Open Standards and yes ends with You know the email comment so I thought This was really really great really cool There's a lot of other things you can
Define custom intents that you want it To detect as well so if there's in your Case if you're there's like a certain Type of intent like question or um you Know listen you know things that you're Focusing on with your um employees very Very cool I mean I want to I want to Keep the calls Positive um and I want to keep them Moving quickly right and keep them Positive and be respectful of people's Time uh and also make sure that we under My most important thing is making sure That the uh Associates and researchers At our firm understand the product so The founders feel that we understand Their vision and so I have them say at The end of the recording okay can I Repeat back to you Um your vision for definitive Intelligence I just want to make sure I Understand it let me know if I got it Right and by adding that to the script I Got rated higher by Founders on our Calls because sometimes Founders were Like yeah I don't know if jcal Understood our vision now if you don't Invest in somebody they're like they Didn't invest because they don't Understand our vision and how genius we Are I get it like I'm an entrepreneur Too um but if I say at the end of the Call hey just to be clear sunde your Vision for definitive intelligences to
Use AI to sort through Enterprise Companies and their big data sets and Help them leverage that to achieve their Business goals and you charge them a fee And the fee is not cheap it's a couple Hundred, a year you would feel like I Understood what definitive intelligence Did yes and so there my custom thing Here would could we tell sentiment of Feeling understood feeling heard oh so You would put a custom intent in there My custom intent would I the founders to Feel that we understand them or they Feel heard so I don't know How you're high on the days well you Know your reputation in Venture is Really important yeah and you know you Have moments in this job where you have To be a bit of a hardass you know like People want to sell their company and They put like 90% of the deal value in An employment contract and then screw The investors like we deal with all Kinds of weird stuff that occurs you Know people rent themselves an apartment For 20K a month and you know you're like What are you doing like this is not Ethical or it's you know would be Perceived as like impropriety and so When we don't have to when we don't have To deal with those situations I'm trying To have like a very high level of Empathy and connection with the founders Yeah I know that sounds groovy and
Hippie dippy but you know they're Unique Individuals in the world Founders right Are you know we but feeling heard like Having been on all sides of it right Having been a multiple time entrepreneur Having been an investor having been you Know selling companies I've acquired Companies I think that little trick that You're talking about is really important I've felt that frustration many times I Felt it selling a product to someone not Feeling like the person I'm selling to Is not understanding felt it during a Pitch to people um so I like that um Okay I'll devices I call these devices And when you have a device like this I Try to make devices like we're doing Here when we give it a rating a device You know can in a in a process or a System these kind of devices in a system Or a Process can really manifest like um a Certain brand right so if you even have The concept of an introductory call we Frame it as an introductory call because It it's not designed to be the the Just to introduce you to our team and What your vision is and then for you to Understand who we are and how we invest Oh we're not series a leads we're seed Okay and we have programs right so Sometimes we need to you know help with Them understanding what we do right so That's why I created the concept of the
Introductory call and the device of let Me repeat back to you the vision so I Make sure we understand that I do it Myself now it's like slowing down to Speed up in a way you slow down and you Reflect back to the person what they're Saying right it's also a good way to be A good partner to a spouse or to be a Good friend well it is the other thing Is reflection is a big thing in AI as Well um and and I explain and I explain Why when an llm starts to produce output Right it's you know predicting next Tokens but one of the things it doesn't Have is a backspace key so once it Starts down its journey and if if in its Prediction tree it makes a prediction That's incorrect it just has to continue Ah but when you ask it are you Sure are you sure get a chance to run it Again and take a different path and so The same thing works with with Llms yeah see that's interesting so Confirming are you sure like if we did That when we did the Keystone thing yes In the training if we said are you sure That's how a keystone works and like let Me go check yeah good idea inference but Yeah in the inference yeah let let me Check because I I kind of made a mistake And I just had to continue with it Because I was and there's no way to stop Because it's just streaming the tokens At you so it's an important concept it's
Reflection there's some good Papers Written about it we'll drop a link to Everyone yeah awesome all right let's do One more demo here got another Dem one Moreo yeah I do okay I got I'm going to Give that one an a as well though so That's a a for both of us I mean it's so Awesome I'm a sucker for these kind of Tools that help you understand humans More and it seemed I give it the a for Accuracy because I know that was me Talking I know Steve Jobs replying I Know you know it was Walt Mossberg you Know teeing it off to me like I I've Seen that clip a couple of times I I Know it's accurate so it felt very Accurate so cred to them okay we are Going to close out with our friends over At anthropic okay and so um you I have This queued up and so I basically have a Famous picture of uh you know Michael Jordan uh oh a dunk yeah it's a famous Dunk of his where he takes off the free Throw line yeah Sam dunk competition you Know we've all seen it and basically the The team over at anthropic have launched A new model or a variant of a model in This particular one it's called Claud 3 Hau so it's smaller and faster and it's Multimodal so in this case what you know Uh for for folks that are listening uh And I can run this again just real time Here you can see it's going to come back Pretty fast you said describe this image
And it was instant the image to picks a Professional basketball player in midair Dunking a basketball through the hoop During a game the player is wearing a Red jersey appears to be in the midst of An impressive dunk and with the crowd in The background visible and cheering the Court and basketball arena suggest this Is a highlevel basketball competition Likely an NBA game the dynamic action And energy captured in the image convey The excitement and athleticism of the Sport and so um what what we can see Here is you know what we said at the end Of last year that Multimodal um AI is going to become Really important and uh you know these Folks have a model it's fast um it's Accurate um and it's incredibly useful For where things are going now and what I wanted to really talk about with Respect to this because we've seen a few Of these now this is one of the ones That's available like hosted along with Like GP TV I want entrepreneurs who are Building to think about this in the Following way if you were to oh let me Actually find another image uh really Quickly and pull it up well let me also Ask you a question while you're doing This if you were to increase temperature And the max tokens to sample um there's Two bars there explain to the audience What that would do here yeah so
Temperature is going to increase the Variance in its Response right it's going to basically It's going to make it much more I would Say uh I'm just going to just try to Describe it when it's going down its Path of probabilities it's going to make It a little bit more Random sometimes it won't always pick The highest probability is what I would Say yeah okay and so if we run that Again and then I will pull up another Image here as well so we'll run this uh And so it's kind of very similar but I'm Gonna pull up an image yeah six and this Model hu is the this is their cheapest Fastest smallest right like is there you Want to grab an image and describe it Real fast this is the way to do it this Is the way you want to do it this is Exactly the way you want sense okay so What we're g to do is and I want really Entrepreneurs to think about this Particular example I've got this image Of a nice healthy food bowl that is a Healthy food bowl okay and what I've Done is I'm saying describe this image And return the results in Json format Include the type of food the size and Calorie count and we're going to do this And why this is really Important um uh this one know okay I I Want more details okay Um so it simplified oh let me turn the
Temperature down this is probably why as Well let's take this here let's run this Again um why this is very Powerful um I'm going to do this one More time hold On Okay each And for people don't know Json is a open Standard file format yeah human readable Text to store and transmit data right Okay so here's why this is important if You were to try to do this a year ago You would have to have had something Take the image then process the image And then go through an Individual element on on each thing that Was there and then cross reference that Against another datab bed with food Information right now all of that's been Collapsed into a single model which is Basically saying telling me there's About a cup of roasted potatoes in there Sweet potatoes calorie count calories It's telling me there's about a half a Cup of sauteed Mushrooms um there's some of you know Friberg's favorit a half a cup of quino There half an Avocado some roasted tomatoes and some Turmeric roasted cauliflower but Al a Cup how does it know it's turmeric Because of the color Yes so wow what why this is amazing is If you're now developing something you
Don't have to use a whole bunch of Services inside AWS or gcp or Azure to To decompose the problem you can Basically have the llm decompose the Problem for you yes and so you've if you Wanted to make uh like the Next Generation calorie counter app it's Literally maybe five lines of code to Pull that off amazing and you know if You also wanted to take uh I mentioned This like every Charlie Rose episode Ever you know and understand like who's A film director who's a an author who's A journalist and then you know start to Understand what topics they're talking About then looking for those topics you Know in history in journalism like Stitching this stuff together is getting Faster and smoother and you don't need To do multiple choices like a Quinton Tarantino interview on Charlie Rose in 2002 would include these films but it Wouldn't include the the following films A 2010 interview would include those and So just understanding you know the 17 Seminal Charlie Rose interviews with Quinton Tarantino or just Quinton Ino Generally putting those all together and Then understanding The Arc of what he's Talking about what topics over time and Being able to pin those to uh his Filmography Etc all of that's starting To be included in these models yeah yeah And you know what I think for developers
And I saw this at the hackathon I was at Yesterday to close out is what you can Pull off in a short amount of time has Been fundamentally Rewritten I think I'm Excited to do we should do you know like We said a demo hackathon thing together Jcal and I really want you know folks That are out there that are building and I know many already are but if if the Folks that haven't made that jump yet It's easier than ever to do these things You're going to be able to really solve A lot of problems very quickly uh as These platforms you know just keep Extending the data and the reasoning Right I mean the reasoning part of this Is super interesting because you could Ask it once you have this information You could say what should be removed From this and what should be added to Make it healthier yeah right so if you Could say like hey um optimize the salad For me to reduce the amount of calories In it but increase the amount of fiber You didn't ask it for fiber but we could Get fiber in there and you could say I Need to you know get more fiber in my Diet and I need to reduce you know the Number of calories so what what's a way To do that oh you know get rid of the Quinoa and go with chadal you know like Here's a different this would be the Easiest way to solve that problem right This is just absolutely astounding and
How fast it is and how cheap it is yeah Which means I think on a venture basis We were talking about this um $40 Billion fund that uh the PF was Considering doing in Ai and how we might Allocate it it does seem like the Fundamental language model like they're Getting cheaper and cheaper I I'm Wondering like how much money is to be Made there I mean I like your business The hardware business the hosting Business running them the models Themselves if they're open source and They're going to Trend towards free Right like we much cost I think you know The way the allocation was being put out Was accurate I think it's like just give Developers access to these models and You know let them build and I think the Market will stabilize itself when it Comes to who's running them and who can Run them the cheap and fastest it's Going to be amazing I mean the the the The cost plummeting and the quality Increasing means this accuracy issue I Think get solved I don't know when but I Think today's theme is Accuracy and um yeah so I'll give this One that seemed highly accurate to me I'm going to give this one a B+ yeah Just having not tested it across many Things but it does feel like uh yeah Significant I think they've done a good Job they've made it fast they've made it
Accessible Um and now we just want to see a lot More people building with it I think That'll be really exciting keep building With it keep building and you know the Number of developers is going to greatly Increase I think with these tools being Able to teach you to be a developer or Be a maestro amongst a bunch of you know Agents that can write code so I'm really Excited for that I know that's going to Take a little while but I really want to See the number of people who can write Code or push code let's just say push Code because they're not writing it but Who can oversee code production I want To see that increase you know and the Velocity of new products increase all Right man it's been another great Episode we'll see you all next time Follow x.com Sundeep x.com Jason you get Us uh this week in startups.com bets to See the bets we've placed on our AI Future in this ween startups.com to get The AI playlist go to this weekend Startups on YouTube so you can watch the Video and see the Keystone not get Placed in the right spot if you want to Uh great job sunny and we'll see you all Next time byebye awes Bye
