Generative AI

“Like, this statefulness and persistence is so key in how people think about spatial reasoning and, like, developing an environment over time. Like, people don't think in this ephemeral, like, generate a thing, like, just throw it away, keep my text prompts. Li…”

“But getting to the point where you or I make a beautiful thing, share it with our family, play it just by talking about it, I think is going to come true as well.”

“You have to understand anything that was built before 2022, 2023, both from, not from a product perspective, culture, processes, systems, org, doesn't matter.”

“It's not at a place where you're just going to get a massive amount of inflow of advertisements that are diverse and creatively inspired and going to create lifts and campaigns, but their tools are available now so that humans can create ads much faster and mu…”

“Netflix disclosed it has used generative AI in about 300 different productions this year already.”

“So I don't think it makes the functional expertise obsolete. I think it means that teams have to be more comfortable with maybe this helps us move faster in a certain direction.”

“The narrow problem with that, of course, is that that was built out ahead of demand, whereas this is being built out behind demand.”

“There's the promise of that it'll eradicate this in short period and actually believe it will. I think we're going to work our way out of it over the next year.”

“We've built a AI tech enabled platform that creates outcome intelligence. And so activate becomes not just that one day and then 100 leaders. We now have some permanence because we've provided some actual data of the cities that we've had these ideations in cr…”

“The way that all of this is sort of fundamentally different from previous platform shifts, is that with, you know, three G or the iPhone or the web or whatever it was, You didn't know what was going to happen next, but you knew the physical limits. Like, you k…”

“The place that's got product market fit right now is coding. Nothing else has equivalent product market fit right now.”

“Because what generative AI does is it says this is what a good answer probably looks like. This is what most people would probably say. This is how most people would probably make it.”

“And so there's less onus on coming up with one single great idea. There's a, you can get to more ideas faster and more of an onus on judgment and intent and decision making.”

“If we see a real reckoning with the generative AI boom, it's going to come in that area in particular, and that to me is a flashing red warning sign.”

“The system of records will still stay. Like AI or no AI, your bank ledger will still be a bank ledger. You still need a hundred percent auditable, hundred percent accurate platform to deliver your trade.”

“Anyone who's publishing AI content directly To the internet, I think, is making a mistake. because even well-trained GPTs or Claude chats still needs massaging.”

“It is in robotics. It's in consumer robots. It's taking advantage of this amazing new toolkit, generative AI, and using these generative tools to control robots.”

“Users are going to be more and more designing in game, designing clothing, designing their own worlds by talking about it, not by using three D tools.”

“Increasingly it's going to be More and more, just like a few prompts on your phone to get the piece of software that is that meme.”

“The generative AI is impressive because it can reproduce some of the things that humans can do. Like, it can draw pictures that look like people, you know, human pictures write text. Deep RL is impressive for the opposite reason. It does things that humans had…”

“So, I think the big challenge, and this is kind of what I'm leaning up to, and what I hope to, ah, that we'll figure out here at Physical Intelligence is how to combine those threads. How to bring in all of that knowledge that you get with generative AI, but a…”

“Generate AI is very, very, very good at five dollar creative work.”

“When we went from generative to reasoning, the amount of computation we needed was about a hundred times. When we went from reasoning to agentic, the computation is probably another hundred times.”

“No one's going to build a company doing any of this stuff because it's too easy to build, right? Like there's no software defensibility to any of it, right? Like, so you just have to be really pure on business model and like why it is that you're going to have…”

“Black employees are currently expected to send an update email to Dorsey every week, who then uses generative AI to summarize the thousands of messages.”

“If you're asking everyone to give you essentially sell themselves and the work they're doing on a weekly basis and using that as your like foundation for understanding the state of your company. It's gonna be biased positive. Like, that's not actually good. Ca…”

“There are no network effects in building the models yet. There may be in the future, but at the moment we don't know.”

“The length of time that an artifact will exist for is inversely proportional to the likelihood it's going to be generated. And I think this is true across media.”

“Spotify doesn't really need to invest in generative AI. I heard a good analogy that was like, did, should Spotify have, like, released a guitar so that people can make more music? Like, no, because people will pick whatever tool is available, and then they wil…”

“One could say no matter how cheap it is to create assets, the expectation of quality from consumers goes up at exactly the same velocity.”

“I'm more of a believer that there's going to be sort of new behaviors that you can't see just yet. And this is one of them, right? Which is if cost near zero, then literally everyone can do it. But if everyone can do it, then of course, you know, the, who's go…”

“What a belief they had very, very early on, which I would characterize as super creative to both believe this and then pursue it, was that actually in the future, AI is going to make it so easy to create and such a personal experience to create. That these peo…”

“There has been many startups that have failed in the generative AI. We're going to replace RPA with generative AI models. There's many startups that failed actually that I know of, like pretty some high profile ones.”

“What is interesting with generative AI is that we are being reconditioned to tolerate much longer delays. So if you use something like GPT or you use something like Claude or your favorite chatbot, oftentimes it's just sitting there thinking for seconds and se…”

“Agentic AI, at least the way we look at it, is the is the bringing together of two of the most powerful forces in generative AI today. One is the power of reasoning, and the other is the power of specialization, and so agentic AI uses reasoning to break comple…”

“Casting what seems like generative AI problems into agentic problems has allowed us to bridge the gap between the lab and production.”

“The new thing is generally not very good or terrible at the stuff that was important to the old thing, but it does something else.”

“In today's world with the tech that's out there, a 200% startup can actually operate at the throughput of what we operate with 2000 or a thousand. Where we sort of maintain and sustain our advantage is if we take our 2000 and now operate it at the pace of 8000…”

“Pre-gen AI, the biggest thing was as a seed stage investor, is this real value creation? Like, is this a nice to have versus a must have? That was the big question for most companies that came to pitch... These days, the reality is AI has put founders in a pla…”

“I think we're definitely due for some kind of shakeout. Again, regular listeners will know I'm very bullish. I work in the AI industry. I am, I'm very bullish on generative AI, large language models as a whole. The way everything's like, you know, played out o…”

“You might be working really hard on something that can, that then gets Completely obviated by a product release from a large company. And that's even faster now than it has been in previous cycles.”

“The concern, especially as you move from generative to agentic AI, where you have autonomous agents moving through your systems doing stuff without checking back in with a human, I think it creates risks that we haven't got our hands around yet.”

“Now, I actually think AI has actually made it so simple with Gen AI that you can actually build a lot of things like the simple, 20 13 companies, what they were doing, you could probably build this today with one person company.”

“Because I, we have gone through we have gone into this phase of like specializations, like people like very highly specialized and people are supposed to do like focus on one thing really well, instead of being a big picture. And we don't have a big picture of…”

“I am very optimistic that generative AI is going to like, you know, really lift design In the world and make it one day equal to engineering. I think that, I don't think that's a crazy thing one day.”

“Generative AI is not traditional software, so growing your revenue at a loss doesn't, it's not like you're just gonna scale to, you know, like near 90% margins. It's gonna cost more.”

“But I really think generative AI is bigger than all of that because we've had to completely retool our product strategy and our company and we're still in the middle of it.”

“We see about a hundred billion dollars already in incremental generative AI revenue in twenty-twenty-six. That has to grow to well over a trillion by twenty-thirty.”

“The other property, which I think is a little underrated, is that it's very easy to go live. And I think a lot of Gen AI use cases are struggling with that right now, especially at the enterprise level, because there's risk involved, right? Like people don't w…”

“I do think the agentic challenge is a much bigger challenge than the generative AI challenge.”

“I think what you'll get, I think it's going to affect The middle to the high end of the curve in the following way. Most films involve VFX now. And it's going to affect the toe of the curve. But the lower part of the slope is not going to change that much, and…”

“These models use a lot of GPUs. They are really expensive to train and they are really expensive during inference on today. So that's another area that, that we really question sometimes the ROI of some of these things because of the cost of all of it.”

“Don't, even though you keep talking about it as generative AI, be the generator and let it refine. That's the major trick. You know, that's the hack everybody should learn.”

“So actually voice of customer or customer feedback is no longer necessary. You can now run generative AI on all these calls and you'll automatically now know earlier you used to ask for CSAT and NPS. All of those things are not required. You can actually prett…”

“Generative AI has been in a lot of ways, a fuel for growth as users realize they can ask more questions they can bring more questions to search.”

“Oftentimes we thought of the idea, 15 years ago, 10 years ago, five years ago, you tried, it didn't work, you tried, it didn't work, or you tried and it was more incremental. You can make a little bit of progress. Suddenly we're at a time where you try those i…”

“All of them work with text somehow, and generative AI came into the game and just kind of threw up everything off the table. And then when it landed, you very clearly saw how you could solve a lot for a lot of these use cases with the same underlying tech.”

“LEQ is an agent that is not only based on gen AI and look at me, I can talk for hours. She is goal-based. There's a lot of behavioral AI alongside the generative AI, and this is where the company has gathered a lot of experience and working code that's differe…”

“Generative AI is not traditional software economics. It's not like essentially zero marginal cost. It's not certainly not social media, but not even traditional software. It's a completely different cost structure. It's more industrial in my opinion than tradi…”

“I think five or six years from now, we're going to start to see real sort of erosion in the space because what they're delivering is going to be so good.”