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25 Nov 2024 Latent Space Why Compound AI + Open Source will beat Closed AI

“One is, again, because a lot of products built on top of Gen AI, they are consumer-personal developer facing, and they require interactive experience.”

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Speaker unverified
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evaluation
Recorded
25 Nov 2024
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Latent Space

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…And I think the typical challenge for people is understanding that has value, and then there are other people who are also offering open-source models. Your mode is your ability to offer a good experience for all these customers. But if your existence is entirely reliant on people releasing nice open-source models, other people can also do the same thing. So I would say we build on top of open-source model foundation. So that's the kind of foundation we build on top of. But we look at the value prop from the lens of application developers and product engineers. So they want to create new UX. So what's happening in the industry right now is people are thinking about a completely new way of designing products. And I'm talking to so many founders, it's just mind-blowing. They help me understand existing way of doing PowerPoint, existing way of coding, existing way of managing customer service. It's actually putting a box in our head. For example, PowerPoint. So PowerPoint generation is we always need to think about how to fit into my storytelling into this format of slide one after another. And I'm going to juggle through design together with what story to tell. But the most important thing is what's our storytelling lines, right? And why don't we create a space that is not limited to any format? And those kind of new product UX design combined with automated content generation through Gen AI is the new thing that many founders are doing. What are the challenges they're facing? Let's go from there. One is, again, because a lot of products built on top of Gen AI, they are consumer-personal developer facing, and they require interactive experience. It's just a kind of product experience we all get used to. And our desire is to actually get faster and faster interaction. Otherwise, nobody wants to spend time, right? And then that requires low latency. And the other thing is the nature of consumer-personal developer facing is your audience is very big. You want to scale up to product market fit quickly. But if you lose money at a small scale, you're going to bankrupt quickly. So it's actually a big contrast. I actually have product market fit, but when I scale, I scale out of my business. So that's kind of a very funny way to think about it. So then having low latency and low cost is essential for those new applications and products to survive and really become a generation company. So that's the design point for our distributed inference engine and the file optimizer. File optimizer, you can think about that as a feedback loop. The more you feed your inference workload to our inference engine, the more we help you improve quality, lower latency further, lower your cost. It basically becomes better. And we automate that because we don't want you as an app developer or product engineer to think about how to figure out all these low-level details. It's impossible because you're not trained to do that at all. You should kind of keep your focus on the product innovation. And then the compound AI, we actually feel a lot of pain as the app developers, engineers, there are so many models. Every week, there's at least a new model coming out. Tencent had a giant model this week. Yeah, yeah.…

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