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Back to Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO, with Erik Bernhardsson & Vibhu Sapra.

How Many People Work at Modal?

Erik Bernhardsson says Modal recently crossed 200 people and will probably hit 250 by the end of the year. At 10, 20, or 30 people, culture stays implicit because everyone can sit in a room and tell when he is annoyed or happy. At 250 people, coworkers do not necessarily see whether he is annoyed or happy, and a lot of new people can feel nervous talking to the CEO, so context, motivation, daily excitement, incentives, implicit trust, and accountability have to be set on purpose. The Dunbar number is more fake than real as a story, and still kind of real: around 150 to 200 people, laying the foundation of the culture is very important, including how to remain approachable.

Modal grew about 4x on an annualized basis in the last 12 months. Doubling the team every year is not super hard. A 4x pace is an unsustainable growth rate on a relative basis. What shows up is cultural drift, islands of different working styles, and people doing very speculative things. On the engineering team, asking an engineer what they are working on can reveal a fringe project and whether the time should really go there. Fast growth also costs the time spent ramping people up. The exact path after the year is still open: maybe 250 by the end of the year, then growth of maybe two and a half or three times, very likely near 700 people next year. Most of the new roles are engineers, and sales is opening up a lot too.

Grokipedia·Dunbar

Transcript

Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO ·

Latent Space: The AI Engineer Podcast

More from this episode

  1. What Is Modal's Killer App?Erik Bernhardsson says Stable Diffusion turned out to be the killer app for Modal, the platform he built to make it easy to run code in the cloud.
  2. Why Did Modal Rebuild Its Tools for Generative AI?Erik Bernhardsson says Modal rebuilt its tools for generative AI because Kubernetes and Docker were made for a steady back-end workload.
  3. Why Are AI Hardware Prices Going Up?Erik Bernhardsson says AI hardware prices are going up because capacity is tight while big buyers take as much supply as they can, even though hardware prices…
  4. Why Won't Erik Bernhardsson Buy All the Compute He Can?Erik Bernhardsson will not buy up as much compute capacity as possible just because demand for intelligence looks basically infinite.
  5. How Do Neoclouds Expand So Quickly?Erik Bernhardsson says neoclouds expand quickly by pre-selling chips they have not bought yet.
  6. What Share of Revenue Do Modal Sandboxes Make?Erik Bernhardsson says Modal Sandboxes now make up about a third of revenue, and the team considers them the company's second product.
  7. Is Smaller AI Training Underserved?Erik Bernhardsson says smaller AI training is an underserved market. Huge training runs go to Neo cloud mega deals for 100,000 GPUs.
  8. Why Does Modal Snapshot Sandboxes?Erik Bernhardsson sees snapshotting as the way a long-running agent spins a sandbox up in 100 milliseconds, runs a few commands, shuts it down, and snapshots…
  9. Was Modal Hacked in the Hugging Face Incident?Erik Bernhardsson says Modal itself was not hacked in the Hugging Face incident.
  10. How Does Modal Treat Code Reviews?Erik Bernhardsson treats code review at Modal as optional.
  11. What Is the Best Use of New Cash at Modal?Erik Bernhardsson says the best use of new cash at Modal today is capacity prepayments. Modal is ramping up capacity very aggressively.
  12. Why Does AI Compute Come in Rectangles?Erik Bernhardsson says AI compute comes in rectangles because a typical GPU contract sells a fixed block of chips for about three years, starting three to six…

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