Poolside CEO: Why Most Companies Shouldn't Build Foundation Models

The Focus Should Shift to AI Applications, According to Poolside CEO

Jason Warner, co-founder and CEO of Poolside, has expressed a strong opinion regarding the current AI landscape. He believes that the majority of organizations aiming to develop foundation AI models would be better served by concentrating their efforts on building practical AI applications. Poolside itself is an AI-driven platform designed for software development.

Intelligence as a Core Commodity

Speaking at the HumanX AI conference in Las Vegas on Monday, Warner asserted that intelligence is arguably the most valuable resource globally, comparable in significance to electricity. He stated that those who disagree with this premise should reconsider their involvement in foundational model development.

Warner characterized the choice as a pivotal one. He explained that pursuing foundational models can be extraordinarily lucrative, or it can represent a profound opportunity to reshape the future of humanity.

Poolside's Approach to AGI

Warner clarified that his company is actively pursuing Artificial General Intelligence (AGI) through the development of software. He suggested that if a company views foundational models primarily as a means to attract venture capital, they should instead focus on creating an interface for existing models.

However, Warner also emphasized that simply having a foundational model isn't enough. It should be integrated as a component within a broader product offering, particularly given the increasing competition in the field.

The Importance of Challenging Environments

“To succeed in this endeavor, a company must target the most demanding applications,” Warner stated. He argued that a strategy of pursuing both simple and complex applications simultaneously lacks coherence. A full commitment to innovation is essential.

This philosophy is driving Poolside’s engagement in challenging sectors like defense and its collaborations with governmental agencies. The company also intends to release a consumer-facing application in the future.

Company Background and Funding

Founded in 2023, Poolside is headquartered in San Francisco. The company’s founders include Jason Warner, previously the CTO of GitHub and a Venture Capital Managing Director at Redpoint, alongside serial entrepreneur Eiso Kant.

To date, Poolside has secured over $620 million in venture funding, resulting in a current valuation of $3 billion.

Key Takeaways

• Focus on building AI applications rather than solely on foundation models.
• Intelligence is a critical commodity, comparable to electricity.
• AGI is being pursued by Poolside through software development.
• Target challenging environments like defense for impactful innovation.