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Back to 20VC: Why Robotics Will be 100x Bigger than Coding Agents | Inference Will Be a $10TRN Market: What No One Sees | Why Software Investors are F***** Today with Naveen Rao, Unconventional, with Naveen Rao.

Is Reinforcement Learning Less Efficient Per Dollar?

Naveen Rao says reinforcement learning is more inefficient. Per unit of compute or per dollar, the model improves less, even though the training still keeps moving forward. He does not know that the shift toward it is more efficient. The aim is making models better at the tasks that matter.

For the next several years, he thinks the work is probably very important. Specialization will start in the middle layers and maybe even in the pre-training layer. He does not think the model companies are thinking very long term about performance, such as a massive breakthrough in how an AI system works that would give an advantage. In his view the big labs are not doing it as much.

One month late on a model is a disaster for OpenAI, Anthropic, Grok, or Google. The race is really fast, so they cannot afford to take the big risks just yet. XAI reached the frontier pretty fast with enough resources by taking the existing paradigm, hiring people who know how to build the pieces, and executing very fast. There was not a ton of very deep innovation in that path. Putting known pieces together quickly is different from coming up with a new paradigm.

Grokipedia·Naveen Rao·OpenAI

Transcript

20VC: Why Robotics Will be 100x Bigger than Coding Agents | Inference Will Be a $10TRN Market: What No One Sees | Why Software Investors are F***** Today with Naveen Rao, Unconventional ·

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

More from this episode

  1. Have Physical Efficiency Gains in Chips Stopped?Naveen Rao says physical efficiency gains in chips have largely stopped.
  2. Should I Trust AI Agent Decisions Yet?Naveen Rao says people should not trust AI agent decisions as much as human decisions in a lot of cases just yet.
  3. Why Are Big AI Model Companies a Data Problem?Naveen Rao says the big AI model companies are largely a data problem. Most of their capabilities have not come from advances in the model itself.
  4. Are Pure Software Investors in Trouble?Naveen Rao thinks hardware is the place to be over the next 10 years and is confident a pure software investor is in trouble.
  5. Why Does AI Leave Developer Budgets About the Same?Naveen Rao says the share of developer salary that shifts to coding tools may stay roughly stable, because training people to judge good code is the hard part.
  6. How Much Bigger Will Robotics Be Than Coding Agents?Naveen Rao thinks robotics is going to be 100 times larger than agentic coding.
  7. What Did Naveen Rao Change His Mind About?Naveen Rao changed his mind in the last 12 months on the useful metric for progress in investing. Market validation is an old way of looking at it.
  8. How Did Naveen Rao Feel Meeting Steve Jurvetson?Naveen Rao walked into an early meeting with Steve Jurvetson nervous. He had heard Jurvetson was super smart and expected to be taken apart.
  9. Why Is Naveen Rao Excited About AI?Naveen Rao is personally pumped that AI is a tool and capability for asking much bigger questions about the universe.

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