Tomasz Tunguz - Usage as the Moat in AI
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Usage as the Moat in AI
As generative AI captivates Startupland, startups will do what they have always done: integrate new technology to build transformative businesses. Incumbents have seized the moment with Microsoft, Adobe, & others integrating generative AI into their products quickest. In response, startups must develop moats to stake out their market. What are these moats? At the moment, capital & technical expertise create competitive advantage. Models require millions of dollars & technical expertise to deploy: document chunking, vectorization, prompt-tuning or plugins for better accuracy & breadth. But in the long-term, usage will be the enduring moat. Machine learning systems, like any complex program, benefit from more use. The more queries against an ML system, the more the strengths & weaknesses of a system come to light. Product & engineering ply those insights to improve performance. That process spins a flywheel. More queries -> more diagonostic data to improve the model -> a better product with more users. In addition, researchers have observed an emergent property of machine learning models : something we didn’t anticipate but we can see. Researchers at MIT call this phenonemon Reflection. In this experiment, machine learning agent learns from its mistakes using another machine learning model called a Reflection LLM. Reflection improves its accuracy from 75% to 97% after 12 tries. This technique worked well for one of the two attempts, but not both. It’s still early in this research area but the paper reinforces the idea that more usage will lead to significantly better model performance. My marketing professor in grad school wrote an equation on the board the first day of class : Innovation = Innovation + Distribution. In generative AI, innovation & distribution are inextricably linked, feeding each other. More users means a better product. A better product will attract more users. That’s the moat. |
Key phrases
Older messages
The Typical Startup Saw a 24% Increase in Sales Cycle in 2023
Tuesday, March 28, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Typical Startup Saw a 24% Increase in Sales Cycle in 2023
The Hardest Round to Raise in 2023
Friday, March 24, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Hardest Round to Raise in 2023 The hardest round to raise
Which Increases Productivity More : The Advent of Personal Computer or a Large-Language Model?
Wednesday, March 22, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Which Increases Productivity More : The Advent of Personal
How to Build Your Startup like Google & Stripe
Monday, March 20, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How to Build Your Startup like Google & Stripe In late
When Will SaaS Budgets Increase Again?
Friday, March 17, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. When Will SaaS Budgets Increase Again? I'm watching
You Might Also Like
🚀 Virgin To Face Delisting
Friday, April 19, 2024
Plus Q1 earnings kick off, SpaceX exec launches a new VC firm, Tether invests $30M in $SATL and more! The latest space investing news and updates. View this email in your browser The Space Scoop Week
10words: Top picks from this week
Friday, April 19, 2024
Today's projects: Spheria • Narration Box • OnTheFly • AnyCheese • Dumbbe • HASTY • lockrScan • IdeaAize • Mailmo • ProSolvio • GigHunterBot • WeekToDo 10words Discover new apps and startups in 10
[Replay] Building a million dollar beauty brand
Friday, April 19, 2024
Free summit replay extended Hey - great news! We've extended the summit replay for 24 more hours. Watch it here free >> And, I want to highlight one of the inspiring founders, Alicia Scott.
Put it on paper
Friday, April 19, 2024
In case you missed it, here is the full recording of the 668 person workshop I co-hosted yesterday "how to build products of the future". It's completely free to watch here. Put it on
7 prompts for your B2B company’s next LinkedIn post
Friday, April 19, 2024
Plus, tips, news & Buffer updates for your social media journey Image Hey folks 👋🏾 It's been an interesting week in social, with the launch of TikTok Notes (their take on a photo + text
Challenges of Offering an API — The Bootstrapped Founder 313
Friday, April 19, 2024
When you sell access to an API, what should you keep in mind? How would you protect your data but still make it easy to use?
12 hours to go! 🐣
Friday, April 19, 2024
Catch the super early bird rates before they expire! View this email in your browser. 1200 x 380 (Desktop & Tablet) (8) Hey there, There are just 12 hours to go before Summit Summit ticket prices
Why I Switched My Blog to Ghost (and Why You Might Love It Too)
Friday, April 19, 2024
Tired of slow, clunky blogging platforms? I was too! Find out how Ghost changed my blogging life (and my company!), and why it might be the upgrade you need. Salehin Khan Salehin Khan Why I Switched My
Latvia's startup financing gets creative
Friday, April 19, 2024
We visit Riga to explore Latvia's tech scene, layoffs at Stability AI and why climate tech's latest phase will be built on debt. View in browser Notion flagship logo final Good morning there,
How Meta is paving the way for synthetic social networks
Friday, April 19, 2024
Five ways of thinking about Llama 3, its latest large language model Platformer Platformer How Meta is paving the way for synthetic social networks By Casey Newton • 18 Apr 2024 View in browser View in