Aravind Srinivas:Will Foundation Models Commoditise & Diminishing Returns in Model Performance|E1161

Aravind Srinivas:Will Foundation Models Commoditise & Diminishing Returns in Model Performance|E1161

The Commoditization of Foundation Models

Reasoning and Memory in AI

  • Current models' reasoning abilities are comparable to a high school student's level.
  • Future models will iteratively improve their reasoning by generating outputs, seeking feedback, and refining their explanations.
  • Current models prioritize and discard irrelevant information to manage memory effectively.

The Future of AI and Perplexity

  • OpenAI and Anthropic are the two most likely companies to achieve a breakthrough in bootstrap reasoning.
  • Large cloud providers will acquire companies like Anthropic and Cohere to add foundation models as complementary features to their existing services.
  • OpenAI and Anthropic are unlikely to be acquired due to their leverage and the need for their output in the cloud market.
  • Perplexity is building an Enterprise Pro version with compliance, security, and data governance features to address concerns about data leakage in AI-powered search.
  • Perplexity's business model focuses on acquiring users through superior product execution and offering great features at amazing prices, rather than relying solely on marketing.
  • The dominant engine of Perplexity in five years will likely be advertising if they can crack it and become profitable.

Arram's Perspective on AI and Perplexity

  • The biggest misconception in AI today is short-term thinking and the belief that chatbots are a bubble.
  • The key to successful AI integration is understanding the existing user intent of an app and tying new features into that intent.
  • The future of browsers will involve agents working within them, allowing for more productivity and automation.
  • The hardest element of Arram's role as a startup CEO is dealing with contradictions in decision-making.
  • In the future, the speaker envisions Perplexity to become the go-to assistant for providing accurate facts and knowledge, regardless of advancements in AI and changes in human agency.

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