AI Predictions for 2025: Geopolitics, Agents, and Data Scaling — With Alexandr Wang
Channel: Alex Kantrowitz
Published at: 2024-12-11
YouTube video id: shMX2N89MdQ
Source: https://www.youtube.com/watch?v=shMX2N89MdQ
scale AI founder and CEO Alexander Wing joins us to predict where AI is heading in 2025 looking at everything from Geo politics to AI agents that's coming up right after this welcome to Big technology podcast a show for Cool Edit Nuance conversation of the tech world and Beyond so thrilled about the show that we're bringing to you today because we have Alexander Wang here he's the founder and CEO of scale AI that company uh it's worth $14 billion it raised a billion dollar this year creates data that powers llms from open AI meta and other big companies and it also provides Technical Solutions to businesses and the US government which helps them build and deploy AI so Alex is working with all the big companies really there in the heart of what they're doing and including you know not just companies but the US government and we're definitely going to touch on that so Alex great to have you here thanks so much for coming on the show thanks for having me super excited to to be chatting today yes and we're going to get into plenty of your predictions and I just want to kick off the one that I find the most interesting which is that you see some geopolitical shifts coming up in the next year in the world of AI why don't you lead with that one so I think the one of the big questions of AI has for the past decade has always been the US vers China arms race and I think the question that's often asked is which of the US or China is going to come out ahead on AI technology and certainly it's been a pretty tight race at various points over the past decade as we look at technology from to technology like with autonomous vehicles it was very close uh and then now with uh with military uh use cases of AI was very close and then now with um generative Ai and large language models it's once again quite close I do expect that the new admin will come in and help accelerate things um to enable the US to compete more aggressively with China and and ultimately come out ahead on the te technology but my prediction really is that um we're going to talk be talking a lot more about not only which of the two superpow wins but which one has AI systems that are going to be adaptable uh sorry adoptable and exportable worldwide so which country is going to is going to have the AI technology that become sort of the infrastructure and the foundation of the world's AI systems and you know there's a lot of countries that are kind of caught in the middle most of the globe is sort of caught in the middle between us and China and there's always these questions where I think both the US and China ask them hey you have to pick a side when it comes to which technology you're going to rely on and so you know we we like to call these geopolitical swing States or you know many many countries which are sort of um you know they could go either way they could go to uh Western and US Technologies or they could go to uh to Chinese Technologies I think one of the best examples of this was in the past year the Biden admin posed to the UAE hey which way are are you going to go in terms of AI technology you could either go into the sort of Huawei China stack or you could go into the Microsoft um United States uh technology stack for AI and they ultimately pick the US stack but I I think this is going to be one of the under the line battles that really defines the course of the next uh few Decades of geopolitics I I don't think we can really afford another Chinese expansion expansionary Expedition like the belon road initiative or h waste technology being exported very broadly we need to ensure that Western AI technology um is dominant uh globally so basically what you're positing is that there's a series of AI models that us companies like open aai Google Amazon meta are building and then there's a series of models that Chinese companies like Huawei are building and they're going to be in competition with each other in the globe and it's important that the US wins or the the Western version wins cuz we also have mraw in France why is that important there's two sides of this I think first there's the Tactical question of okay which one is more powerful us AI versus Chinese Ai and this is very relevant for National Security I mean I think that like if you believe that there's some potential of some kind of conflict over Taiwan or other some kind of other like hot conflict between the US and China um then we really the United States needs to ensure that we have the best possible AI technology to ensure that we would Prevail in any kind of hot conflict that that democracy would Prevail and that ultimately that we're able to sort of continue uh ensuring our way of life having the better having the better chat PT isn't going to make you victorious in a conflict over Taiwan certainly it will not be the only Factor but the history of war is a history of military technology and time and time again you know you see uh when there's new technologies and new technological paradigms that come to Warfare uh it has the ability to fundamentally shift the tides you know we saw that most recently in Ukraine with drone Warfare becoming all of a sudden the major Paradigm by the way that I think that the Drone Warfare in Ukraine is becoming more and more enhanced by generative Ai and more advanced autonomy so that's definitely one thread that is continuing before you move on before you move on where would you say the US and China are in terms of competitiveness on AI technology and especially uh not not even broader but like especially about the way that they apply it in war so if you look at just the raw technology the US is is ahead but China is is is moving is fast following you know and we like to break it down across three dimensions so AI really boils down to three pillars it boils down to um algorithms computational power and data um so algorithms are the kinds that that you know Folks at open AI or uh Google or other companies build um computational power comes down to chips and gpus um you know the kind that Nvidia uh produces out of tsmc's factories or tsmc's Fabs um in Taiwan and then lastly is data which uh is maybe the the least focused on of the three pillars but certainly just as important for the performance of these AI systems if we were to rack and stack vers China we're ahead on algorithms we're ahead on comput computational power thankfully due to a lot of the export controls that the Commerce department has put in place um and then on data it's a little bit of a jump ball you know the the conventional wisdom is that China is actually probably going to be ae- on data in the long run because they don't care as much about sort of personal Liberties and and um you know protecting personal data in the same way that we do in the west and so um so right now the US is ahead that being said the sort of deployment of AI to military you know it's hard to track exactly the pla doesn't tell us exactly what they're doing people Li liberations Army out of out of China they don't tell us exactly what they're up to but I certainly am worried that they're moving faster than we are in the US and this has been the sort of pre pre-existing precedent when it comes to China's use of AI technology for National Security or military use cases so the best example of this is um in the past decade they rolled out facial recognition technology widespread across the whole country for things like weager supression or Global surveillance of their CI citizen base and they did that uh incredibly quickly much faster than any comparable technology scale up in the United States so my expectation is that they will actually deploy AI to their military faster than the US even though the US is ahead on the core technology okay so that that's the military point so basically you're going to want the Western countries to be stronger than China uh and AI makes a big difference there so it's important for the AI Industries uh to be stronger because if you're not stronger then you're there's a liability especially as this stuff gets put into production on the battlefield with things like drones and computer vision I guess applied on top of satellite imagery to figure out where people are stationed in the middle of hot conflicts but there's a more subtle point which is which is that it actually not only does it matter for hot Conflict for war Etc it also matters just in terms of okay which technology becomes the uh commercially or economically speaking the global standard right and this is your second Point here yeah exactly and and because in the US um you know we benefit uh as a country from being the global standard in a number of areas you know we are the global standard for currency um that is something that's incredibly beneficial to our economy and to everything that we do um you know certainly our uh our um uh our search um uh so Google and a lot of our technology companies are the global standards so for search and for um for social media many of these are the sort of like Global standards we benefit a lot from these being the global standards and I think when it comes to AI you know it's a very interesting technology because not only is it a sort of technological utility but it's also a cultural technology ultimately if you if a lot of people within uh on the globe are talking to AIS to you know understand what to think or or how to about certain things than ensuring that the AI substrate that gets exported around the world is one that is democratic uh in nature that is sort of believes in the ideas of of sort of free speech and and sort of um you know open conversation about whatever topic is necessary you know that's a that's a really uh powerful cultural export that we can have from the United States that will over time I think fulfill a lot of America's vision of ensuring that we have you know freedom and liberty for all so I think it's one of these things that is unbelievably important um even beyond the sort of hot military uh implications it's one that's important just for uh culturally ensuring that the United States is able to export our our ideals so you're saying there's a soft power issue here as well yes exactly I want to ask you about China's uh development of AI because I always hear two contradictory things about how China's progressing with AI uh the first is that they have the government that's willing to put all the resources that they can into building the compute power to train and run models and they don't care about data privacy so they have all the data that they need right and then the algorithms are you know they're basically all published in that Google paper you know you can tweak them a little bit but basically they have the algorithms so they should be the lead and then you look at what's actually going on on the ground which is that and you correct me if I'm wrong right now China is using a lot of American models open-source models in fact meta's model the Lama model which is a open- source model that they have developed and released we know for a fact has been used uh in applications by the Chinese military so explain this one to me how has China been able to um effectively you know put all these resources toward the problem but still has to rely on American open source technology to build the things that they want to build well um there's there's probably two major things I mean one one um undeniable uh Trend over the past let's call it five years has been um uh the the sort of the collapse of the Chinese startup sector um and this is really driven by policies from the CCP to to significantly you know they killed certain startup Industries they really like hampered the entire innovation ecosystem and you see it in the numbers the sort of amount of capital flowing into the Chinese Innovation ecosystem has fallen off cliff pretty precipitously so why did they why did they do that before you move on why did they do that I know they also somewhat disappeared jackma right like they had CH Chinese Tech icons that have sort of Gone Away uh was it that the tech industry was growing so large at threaten the government or what it could be the possible logic there yeah I do think that was that's the sort of fun FAL risk I mean I think that um if uh if the government if the CCP has a desire to ensure that they consolidate all the power either they have to nationalize the tech firms or they have to ensure that they stay weak and so um and there were some other yeah in the foot stuff totally and I think it's a lot of this hinges and I think they do really see the world differently from the way that we do I think we you know um in the west it seems totally insane but I think in uh in certain doctrines or in certain with certain ideals I think it make can make total sense right um but but the there is a death of the Chinese Innovation ecosystem so um so a lot of what they have to do uh in AI is is just catch up and copy what what we've been up to um uh which they have been pretty successful at so for example the the um you know open a released 01 and released the 01 preview a number of months ago this reasoning model yeah this is open ey's advanced reasoning model which is great at sort of scientific reasoning and mathematical reasoning and reasoning in code Etc and the very first replication of that model and of that Paradigm of model actually came out of China um from a lab called Deep seek the Deep seek R1 model so they they certainly are extremely good at catching up now there is a there is a um very real hamper in a lot of their progress too which is the chip export controls and this has been um an incredible effort I think from the US Department of Commerce and the you know the Biden Administration in general to sort of um hamper the ability of the Chinese AI ecosystem to build Foundation models of the similar size scale and magnitude as the ones we have in the US because you know um they have not been able to get access to The Cutting Edge um Nvidia gpus that uh that we have in the that we have in the states and so you know whether or not you think that's good or bad policy it has hampered the progress of Chinese AI development um which enables us to stay ahead so let's Circle back to your prediction that you talked about how us and China will be head-to-head trying to get their vision for AI adopted across the globe um so that's your prediction of like what's going to happen who do you think is going to win there I think that the the trend right now is currently very positively in the direction of the United States or or of the West broadly speaking we have the most powerful models um we also have I think the most compelling value proposition in terms of our models are going to keep getting better and yes maybe the Chinese ones catch up over time but uh we are the Innovation ecosystem we are going to be the ones who who innovate far ahead of the the um the adversaries that being said I think that there's um you know on the flip side you have to look at What's the total package that um the CCP or China might be able to offer you know in the Bel and Road initiative it was through um this like sort of like total package of technology plus infrastructure build outs plus debt um that sort of uh managed to to move a lot of folks over to their side and so I think we need to watch it closely to make sure that we always have a compelling total value proposition um I do think you know one sort of sub prediction that I have too which is important to mention here is that um you know the technology is move is moving so quickly that I do think that uh 2025 will will be the year where we start to see several militaries around the world start utilizing AI agents in active War fighting environments to great effect um I think you're going to start seeing this in some of the hot Wars that we have going as well as some um sort of militar advanced militaries who aren't at War start utilizing AI agents and so I think that the the temperature so to speak on on AI deployment to military is going to is going to go up pretty dramatically over the course of the next year yeah I just s a uh post on big technology about how AI is going to be an Enterprise thing for a while right like companies B2B software companies not exactly the most exciting stuff in the tech world is going to be where this stuff is adopted because it solves a problem for them where they have loads of information they can't organize it they can't share it they can't act on it and generative AI in particular is quite good at handling that and then you think about well where else could this be of use if it's not going to be for regular people right like we're not we don't have an AI phone right now but we have like plenty of companies working in AI software and the military is just like the perfect example of where it could apply because of all of the information and the logistics issues yeah exactly and and I think that this is you're hitting on the core point which I think is some is is often glossed over I think when people think about uh the military and think about a war they often think about the the literal Battlefield and the sort of actions on top of the battlefield but um you know 80% of the of the effort that goes into any Warf fighting effort or any milit is all of the logistical coordination that goes into you know the manufacturing of weapons or the manufacturing of various supplies um the logistics and sort of delivery of all those supplies to to a battlefield um the decision- making process um the the sort of data processing of all the information that's coming in and so um most of what happens actually looks to your point a lot like in Enterprise the stakes are just dramatically higher yes yeah military today is is all about logistics it's like the firing of the guns is like the last thing that happens buta it's a logistics game and so just to you know drill down a little bit on one of those sub predictions that you made so how do AI agents help in that case so I you know there's there's probably two core areas where I think AI agents are going to have immediate value um one is in is in to you know kind of to reference your point on Enterprises it's in processing huge amounts of data right now most militaries already have you know more information coming in the door than they have the ability to process um there's terabytes and terabit of data that that come in whether it's data from the battlefield data from their partners and allies data from satellite networks data from other um uh data collection formats and they need to process that into Insight that actually can help them you know make real decisions about you know what they should be doing differently so so the first is just sort of this like huge problem of massive data ingest into uh real decision- making that's um and that that sort of General problem set fits a lot of sub areas whether it's in logistics or intelligence or um military operation planning or whatever it might be um the second area where I see it uh having very very real impact is just in in fundamentally coordination and optimization of of complex systems and this is this is really where the I think logist istics or the manufacturing cases are very clear where um these are incredibly complex processes with lots and lots of moving parts and um it's hard for humans to get your hands around those processes and really optimize them effectively whereas AI systems can uh ingest far more information about the processes than otherwise can run simulations on their own around what are various configurations that might operate better and they can sort of um self-optimize those processes to to perform better and then there's I think the sort of third area which are more uh sort of speculative or sci-fi which is the use of AI agents more actively in drone autonomy or a lot of the autonomous missions that are being run right now and you know I think this is an area of active experimentation for a lot of militaries but I think if you start to see that happen then you're going to you're you will have more autonomous drones that are able to be more and more lethal more and more um uh effective and that's going to be a a cat and mouse um game in and of itself a real race that scares the out of me are you comfortable with that um uh I think it's no I think I think ultimately we're going to need to have Global conversations and Global coordination around to what degree we actually want a lot of this uh a lot of AI agents to be used actively on the battlefield um that being said there are there are hot Wars going on right now where uh militaries and countries are desperate and and I think they'll do whatever they need to in the near term to get the uh to get the leg up yeah it's one of those things that I feel like once it leaves the station it ain't coming back and when we talk about agents it's basically like AI applications that make decisions on their own if we end up having that you know deployed in in war it's just going to once somebody does it it's just everyone is going to do it it's it's like the opposite of mutually restored uh destruction with nukes I think where that's like oh like you know if we do this then the world is over um whereas with like agents deciding what to bomb where to bomb uh how to attack uh as long as they don't have access to nukes it's really tough for that to go uh back in the barn because if you don't use it you're going to be destroyed yeah yeah I think the good news is that if you take nukes as as an example what has happened with nukes is like we've we've built incredibly advanced technology technology that has the ability to frankly be world-ending but that has actually led to more peace than without it because um you know you have this deterrent threat of of the utilization of nukes and so my hope certainly is that while ai's application into military is something that is is um very concerning and potentially extremely powerful it is the sort of same overall effect which is to ultimately deter more conflict than than create I hope you're right and I'm wrong um and we did have Paul Merl lucky on the show a couple months ago and he talked about countries don't start wars that they believe they're going to lose and so maybe that adds to that I mean that's certainly been the case with nuclear all right I want to get into your second prediction uh we already have brought up AI agents but I think we should go a little bit deeper because you know I think people hear about AI agents and they say is that supposed to be something on my computer that's going to like book me travel book me tables at restaurants look things up for me uh do my expense reports if they if I need them to do that or you know basically indiv agents that act on behalf of the individual we haven't really seen those yet we've seen some examples of companies and militaries using these things and the average person doesn't get a chance to touch that but you think it's going to change yeah I I do think yeah I think that 2020 uh 2025 is really going to be the year where we start to see some uh kind of very basic primordial AI agents really start working in the in the consumer realm and create uh sort of real consumer adoption um you know another way that I think about this is is you know we'll see something like a chat chpt moment in 2025 for AI agents which is you know um you'll see a product that starts resonating uh even though to technologist it may not seem like all that or may not seem like that big of a leap relative to what we had before and I think a lot of that is going to come from um probably two main threads first obviously the model is continuing to improve and getting more reliable and sort of you know uh getting down that curve and the second is really evolving in the UI and experience of uh what an agent does I mean right now we're so stuck as a um I think tech industry still on the sort of like chat Paradigm and you know um having everything be a chat with one of these models and um I think that's a constrictive paradigm to enable agents to actually really start working and and to me what it what it really means for an agent to start working is you know um uh me as a user or or consumers in general start actually Outsourcing some real workflows to the agent that they would have had to do otherwise and so we're start we'll start to just sort of like fully trust the agent to do um full endtoend workflows you know maybe it'll be something around travel maybe it'll be something around calendaring U maybe it'll be something um even around just like you know producing presentations or managing your workflow but um we'll start to really offload uh some of the the meaningful trunks of our work to the agents um and there will be something that that really starts to take off um you know I don't know if it's going to be one of the big Labs or it'll be a new startup that comes up with it because I think so much of it will come from kind of like um uh experimenting and and the natural Innovation ecosystem working out but you know what we see is that the models and their capabilities are certainly strong enough to enable a pretty uh a pretty incredible experience you know there's no um uh there's all this talk about whether or not we're you know we're hitting a wall or what not but the models are really really um powerful and uh and we should see something big here okay so just walk me through like what that experience might look like you don't you know we don't have to um stick with this like it doesn't have to necessarily be the use case but since you've imagined uh the idea that AI agents could end up helping us in 2025 like what are some experiences that are in the realm of feasible for someone so let's first let's let's walk through what what's an ideal AI agent an ideal AI agent is one that that I think is um observing and and naturally in all the sort of like core flows of information and core flows of of of context that you are in digitally so you know it's it's in all your slack threads it's all your email threads it like you know it see it reads your your jera or all of your tools to understand everything that's going on in your in your work life and then it helps to sort of organize all that information to start taking certain actions and so like one agent that I think um will would be super beneficial and one that I think is in the realm of feasible is you know something that starts to um uh take a hand at responding to a lot of your emails um you know flagging when it needs you for like additional context or information to to be able to to address your emails um can sort of summarize a lot of your emails for you naturally and so something that just turns the the experience of doing email from hey I'm like having to respond piece by piece to every single email to leveling you up to being hey this is like all of the overall work streams and workflows and how do you want to engage um at a high level on top of those workflows but this is this is a business use case and I'm curious if you think that like how everyday people might end up using AI agents or is that just still a ways off like maybe not in 2025 uh everyone works you know so give me an example outside of the work context yeah I think I think one that's more personal I mean I think similarly um I think in everyone's personal lives you're also juggling and navigating a whole set of of various priorities you know I'm planning a trip with my friends over here and I'm I need to you know get gifts for my for my family and figure out what they what they want for Christmas and then I need to I have all of these sort of personal projects which are still sort of like sitting there and so I think in the same way helping you sort of like level up on top of all of the projects that you're navigating and sort of like help you sort of coordinate between all of them more naturally I think that's something that uh that we're going to start seeing now I don't know the perfect way that that happens right I don't I think that the product experience is so so important as a part of this and having a product experience which um where you don't expect it to be perfect but you expect it to uh be pretty good um I think that's like 99% of the challenge and that's why we haven't seen it yet despite the fact that the models already can do lot of the stuff pretty well my 2025 prediction is that guys use AI agents to use dating apps for them and uh some get found out and some don't and we're going to see some stories about how like uh some guy like set it on autopilot and ended up you know lining up more dates than he could ever hope for yeah yeah yeah that well hopefully uh maybe that's already happening hopefully there'll be good dates yeah I I don't know what are you seeing what are what you know you I know you had Benny off on the the podcast a few a little bit ago what are you seeing as the things that uh that seem to seem to make sense from an AI agent perspective well I think that Mark benof the Salesforce CEO when he came on talked like pretty convincingly that like we'll have ai agents at work and again this is like the work or the Enterprise use case because work has all this data and there are all these tasks that we do all throughout the day at work that are just arduous and really quite you know quite annoying preparing reports making dashboards um going to meetings we don't need to be in pulling out highlights from those meetings sending them to our bosses telling our bosses you know in the Salesforce instance for instance like um how each conversation went and what our expected pipeline is to close that quarter and all this stuff uh can be used for AI I think it can be used with AI I think it's really interesting in the medical use case um I was just speaking with GE Healthcare about how they've now put in dashboards for doctors um sort of summaries of cancer patients medical histories which would run thousands of pages and um and the doctor never had a chance to read the whole history and now the generative AI is summarizing it and uh going out and finding available treatments for them and notifying them when they miss tests and I think this is also an example that benof gave about the healthcare um example where that can actually be proactive in scaling medical advice and medical treatment in a way that you'd never hear from like your doctor after you showed up to an appointment and now can they create an agent that just kind of keeps you on your plan you know in terms of like follow-up stuff that you need to do um on the consumer side like for everybody else that's kind of where I wonder uh because all of our internet has been designed to effectively combat Bots but if we have agents that work on our behalf on the internet like travel sites dating sites social media sites I'm very curious like whether they're going to come up against these bot Protection Systems like are they going to do captas on our behalf are they going to get the text messages and throw put fill in those numbers so they're able to log into different systems because again the whole internet has been built to defend against these things so I'm curious what you think I mean is this vision of you know personal agents that act on our behalf to do things like book travel keep up with our health take action on Internet services for us is it even a a fe feasible thing to do given all the protections to sort of guard against them up until this moment we will have to sort of fundamentally reformat how the internet works to be able to support it and I think that like the um you know we're going to need in some in some senses like there will be like two webs there will be the web that uh that that that humans use um when they need to navigate stuff on their own and then there will be the web that agents use which is sort of under the surface and something that humans will never see but allows them to sort of U you know conduct actions on hals more more efficiently and easily and that I think will be in the long run what what ends up happening and my my honest take is I think that to the degree that most of us uh you know there there's sort of like two kinds of usages of the internet today there's there's um uh sort of consumption which is um which is where we're seeking out content and you know we're curious about things and then there's utility um based usage and I think the the sort of addressable market so to speak uh for the agents is all the utility work like everything where I'm using the internet just to like get something done I want that to happen faster easier better I would rather have to not have to do that actively at all let's say it's like booking appointment looking up a particular piece of information or um you know uh figuring out how to like you know fill out my tax return or whatever it might be like that stuff should all be handled by the agents and we're still going to have to you know do a lot of consumption of of content just to sort of like you know as part of our as part of what we like to do and so um uh yeah I think I think it's a it's a really good point I mean I think ultimately I think agents are going to start in an area that that'll feel pretty um uh it'll feel like a toy just like with any technology so maybe um you know we'll all start with like a language learning agent or we'll start with a cooking Aid agent or it'll just be something that feels pretty innocuous but then we'll start to realize we can really rely on it and then and we'll start relying on it for a lot more and that's kind of what happened I think with chat gbt initially it was sort of we realized you know it was kind of a toy and then people started using doing a lot of homework with it people started to code with it and then now people do all sorts of stuff with chat GPT and other chat Bots um that'll be the the the thread let me ask you this question before we move off of Agents do you think it's ethical for me to like have my AI agent which can type and talk uh go out and email and call a bunch of humans on our behalf people working you know let's say in customer service or uh I don't know if I'm applying to schools and they're trying to find out like information about like whether I qualify and what I need to submit I mean these processes I maybe they've been designed as arduous to sort of filter out the people who aren't willing to do the work to sort of get in or pass that application threshold so it's in some way it's combating these guard rails that companies and institutions have set up for us on the other hand it could end up wasting a lot of people's time uh like I'm I have really U anticipating like no agent policies from like certain schools or institutions being like if you're going to reach out to us it has to be a person versus an agent what do you think you know I I saw this uh this thing on Reddit there was this post of of how um a uh a uh an admissions officer she sort of um created all these uh all these ways in which they could they could track whether or not an essay was AI generated or not and there were very detailed things it was very specific there were list of maybe 20 or so criteria that um that they that they looked for and um and I think that you know to your point it's it's uh it was kind of heartbreaking to see because that means that you know let for if a student used an AI to generate an essay you know they have to spend way more time just figuring out whether or not it was AI generated to like sift through all the noise um and so yeah I think I think you're totally right I think we're going to need there will um almost in the same way that there will be like an internet for humans and internet for agents there will be processes for humans processes for agents and and a lot of um uh a lot of things that are high intent or very expensive or otherwise special in some way are going to be reserved for humans um only and and it'll sort of be the the sort of like more transactional stuff that uh that can be handed off to agents in in Mass that's right I mean in some ways I'm looking forward to this future on the other hand I do sort of think like the more we talk about it how how much AI will take care of for us I do sort of feel like we're hand and balling our way towards that Wall-E future where we're all fat and drinking big big sodas and having roombas take us around the world it's uh yeah I think I think uh uh ease and convenience which definitely are the directions that technology has taken us uh you know uh clearly there should be limits at some point but uh but if we if they exist we don't know where they are exactly and this idea of like removing friction and in some ways it's made the world great in other ways it sort of changes the brain chemistry of people where like we don't expect to go through hard things and when we do we lose our minds and that's why you end up seeing the YouTube videos and the videos on X of people in the airport because we've removed so much friction and companies have competed on the base of customer experience to the point where now if something goes wrong we're fragile and we think that you know we deserve better and there is something to be said uh for friction toughens people up a little bit totally all right we're here with Alexander Wing CEO and co-founder of scale AI $4 billion company um that works with others to help generate a uh data AI data for them and also uh help them scale their AI Solutions we're going to talk a little bit more about Alex Alex's thirdd prediction when we come back right after this and we're back here on big technology podcast with Alexander Wing the CEO and co-founder of scale AI uh so Alex I want to ask you about um this interesting shift that we're seeing right so up until this point we've talked entirely about AI models on the basis of how many gpus or chips they're trained on right it used to be that you could trade a model in like 16 chips right by the way there's not they're not cheap like 20 to $40,000 each uh then I went to a thousand and now towards the end of the year we started hearing crazy numbers like 100,000 200,000 we I was just at Amazon's um reinvent conference in Vegas and Matt Garman the CEO of AWS told me that they're going to train the next anthropic model on hundreds of thousands of gpus gpus or GPU equivalents and then I was like oh that's a lot and as he's saying that Elon Musk came out and was like well we are going to train the next uh xai model uh in Memphis on a million gpus so I think we're really hitting like maybe we're hitting the limit I don't know of what you can do with chips um and so you believe that we're going to shift this conversation Beyond chips in terms of what makes the most powerful model so I will te you up for prediction number three yeah and so so um so much of the dialogue to your point over the past few years has really been around gpus and computational Power and I think what's going to happen in 2025 is we're going to um we're aren't going to only be focused on who can create newer better chips or bigger um data centers with more chips but also who can create um newer and better data and uh one of the things that I think we're going to see is a focus of um the Focus Shift from just computational power to computational Power Plus data um being sort of uh considered nearly equally you know data really is at its Cor core the raw material for intelligence so um the conversations around data are going to be really interesting and one of the big topics that's been um uh that's been bounced around uh for the past few months has been uh you know are we hitting a wall have we hit the data wall and um are we hitting a wall on progress overall and I think the interesting thing that's been happening is um you know this has come from an approach of scale up computational power at all costs it just scale up the number of gpus and create huge bigger and bigger um you know Data Centers of gpus without creating more and more data to train these models on then we're going to hit issues and we're going to hit walls and barriers where we we stop seeing the level of progress that we expect out of the models so um one of the big things that we see especially in our work with a lot of the the frontier Labs is you know it is true they're scaling up the GPU clusters they're scaling up the number of chips um uh you know that's still a very aggressive path for them but the the in parallel conversation is how do we scale up data and that you know there's two sides of that one is obviously scaling up the volumes but also scaling up the complexity so um they're seeing the need to go towards more of what we call Frontier data so go towards Advanced reasoning capabilities um agentic data to support the agents that we were just talking about um Advanced multimodal Data we just saw today for example example that opening ey released Sora um and and so the the needs for you know video data and more um complex combinations of video text audio imagery Etc Al together is going to be really really interesting going into the next year and so um I think one of the lessons that's really played out uh more recently with the models is that you know you can't just scale gpus and expect to get get the same levels of progress you need to have a strategy by which you're going to scale up all three of the pillars you need a strategy to scale up the compute you need a strategy to scale up data you need a strategy to continue improving the models um and it's only through the sort of concert of all three of those things that you're going to be able to get um keep pushing the the boundaries and barriers on AI progress um uh but I'm curious what you think I mean you you've talked to all these CEOs what are they talking about I mean this is exactly the thing that they're talking about we had Aiden Gomez from coher in a couple weeks ago and he basically said that this has sort of been the path of training the models whereas in the early days you could effectively bring anybody off the street take down anything they had to say and it would be new information for the models and then you started have to bringing you started to have to bring in grad students to talk about their because that general knowledge base was built so then you bring in grad students to talk about their uh area of discipline then you go to the phds and then he goes where do we go next because we have all this general knowledge and now we have all this the specialized knowledge that we've used to train these models on and by the way it's just amazing the way that they've improved and been able to sort of handle some complexity it's it's really crazy um and so the question is like where to go next and I I think that's that's what you guys are working on now and I'd be curious to hear what the process is like on your end for you know generating more data for these models to train on yeah so so it's exactly what you just mentioned like a lot of what we're focused on is how do we bring in expertise and and um really the sort of um expertise from every field you might imagine from you know medicine to law to math to physics to computer science to um you know even even knowing about really Advanced systems of various kinds or being a great accountant or you know whatever field you might imagine getting the sort of all of what are all the Arcane knowledge what is all of the sort of really specific um deep knowledge that exists in each of these areas and pull that into you know large scale data sets that we can use to help train these models to keep improving in a lot of these areas and um a lot of the a lot of the effort for us has been um something that we call hybrid data so how do we um so one of the things that we've seen over the past few uh past year in particular is that synthetic data has not worked as well as I think um everybody had hoped you know pure synthetic data just using data generated from the models to try to train future models that can sometimes cause real issues for the models um and so one of the things that we've been really pushing forward is this idea of hybrid data so you have synthetic data but you use um human experts to mix in with the synthetic data to ensure that you're producing data that's really really um accurate and high quality and it won't cause issues but also you're able to do it very efficiently and at Large Scale so you also have those PhD that will sit down and kind of write what they know or dictate what they know and then you feed that into the models yeah exactly and a lot of times it's even more um targeting that you know you run the model until you you realize the model's making mistakes over and over again and then you know you've hit sort of a a limit of its knowledge or limit of its capability and you have a PhD sort of come in and help you know uh set the model up on the right track so to speak um what's the limit then in terms of where are we going to get to because if we let's say we have all these specialized Fields input their knowledge does that eventually make like AI complete if it just kind of knows everything about every subject or does it have to hit like a new Benchmark to really show that it's has this like next level intelligence like does it have to start making discoveries of its own what do you what do you think the Benchmark should be yeah I think I well um to me I think there's like clearly many more levels of improvement so now it's it's sort of testing okay can it can it do each of these things right once or um or how there's sort of the first track was just reliability so getting these models from doing something um right once and five times to right 99.99% of the time and that requires a lot of development just to get to that you know increase the level of reliability of the systems and then to your point it's really about how can the model start taking more and more actions in a row you know one of the things that really um is true in all the models today is that they're not that good at you know uh at taking multi-step actions whenever it has to take an few hops whenever it has to take chain a few things together it'll invariably make mistakes along the way and so um the the next level of improving reliability is really enabling the models to do more and more multi-turn more and more multi-step um uh reasoning to be able to enable them to to sort of do more and more complex tasks and then I the last piece as we go is to and and this is the the key to where you're going is like eventually it'll able to start be able to start making its own hypotheses running those tests on its own and sort of ultimately making its own sort of uh discoveries or realizations or or um sort of conduct its own research and even then it's still going to get stuck sometimes and still going to need a human PhD to come in and sort of help it just in the same way that like you know a PhD student these days you know still needs an advisor to sort of still give it the right nudge and so um and so I don't think the sort of like the symbiosis so to speak between the humans and the AI will ever go away like I think we'll always be able to sort of will always be very important in helping the models you know get on the right track and and ensure that they always are continuing to improve but we're going to see the model sort of level up in terms of um what is the what is the degree to which they're able to be autonomous and the degree to which they're able to to operate on their own and on the M on the multi-step thing right taking a bunch of different steps I heard something interesting from Moody's last week and I want to run it by you where they said basically they've created 35 individual agents so let's say they want to evaluate something for their portfolio like a company for their portfolio they'll have one that will look at One agent will look at the financial data another agent will look at the uh let's say weather risks another agent will look at the location that they're based in another one will look at the industry they have 35 different variables or whatever it is and then they have they all the all of them come back and they deliver their results to this compiler agent which evaluates all all of it and then runs the results by voting agents which ask okay is this reliable or not uh I walked away from that impressed by the idea but also like kind of my reporter brain went off and was like I don't know if this is real or not so I'm curious what you think is that a possible solution and how feasible is that in terms of a way to get into these multi-step processes um so that's a very um in my work uh it it's a very sort of um uh regimented way to try to to try to enable the systems to do multi-step reasoning because ideally what you want the model to do is to to just like how a human does be able to sort of go through and figure out what are the bits of pieces it needs to know as it goes along um and be able to do so on its own dynamically without having to sort of like um pre predetermine and preset this entire regimen for the models to need to go through um so you're saying that might be something that a model can do entirely on its own that's pretty cool I think in the future like we're we're going to the models will improve to be able to get there you know and and I think the real um on the multi-step side and the multi-step reasoning point I do think that the um there's a lot of blockers because um this is the kind of thing that humans learn how to do kind of from a lot of trial and error and experimentation like we'll try to um do a complex task and then we'll realize we'll learn that oh we actually missed you know let's say you try to bake a cake for the first time for you know reasonably complex Endeavor and then you realize you missed a b c and d and then the next time around you'll be like okay I'm definitely going to remember just pan of flour that came out of the oven where did I go wrong um and uh but yeah exactly I mean like we learn a lot through trial and error and right now the models are the models are early in their process of doing the same thing of going through and and sort of uh um and being able to do these sort of dynamic processes where they learn through trial and error and they were able to continually learn from their mistakes that's where we need to get to okay great I I know we have uh just a couple minutes left so let me throw a couple um quick hits at you and then we can head out first of all I'm just curious we talked a lot about how data is going to matter a lot but I can't get my mind off the fact that uh elon's going to try to build this million GPU uh super cluster what's your prediction for what that spits out I honestly think right now at where we are in AI development today um we are more bottlenecked by data than we are compute so I think incremental Improvement then with something like that yeah I think the I think the real step changes come from data okay um so just a quick followup to that if we um if we end up like I just saw there was a news from Google today about this breakthrough they had in Quantum Computing which we'll probably cover more on the Friday show uh if we have working quantum computers which can process data much faster what do you think that does for AI um I I really think so I had the opportunity to to tour Google's Quantum uh facility earlier this year uh it's very impressive um it's I think Quantum Computing is on um kind of like the way AI was back in 2018 it's on a few scaling laws where you can definitely sort of squint and see that you know in 5 to 10 years this is going to be a really really impactful technology and ultimately I think what it's going to enable is it's going to speed up AI ability to to um uh do scientific discovery and so whether it's you know I think I think a lot of the use cases that excite people are in biology or chemistry or Fusion or a lot of these very chaotic and difficult understand you know Natural Sciences I think that's where um uh Quantum Computing has the ability to be pretty transformational fundamentally and I think AI will be able to use it as a tool to be able to enable it to do inred research in those fields that's crazy okay so all right last one for you we're in the middle of like this race where it seems like every week the foundational model companies put out a new uh development whether that's open AI whether that's anthropic or even xai Google Amazon just released a set of new models last week so who do you think is in the lead at the end of 2025 oof that's hard to say I mean I think think that um one thing that we see today with the models is that uh because all the benchmarks that we're used today are what's called saturated I.E you know in other words like all the models do really well at the benchmarks it's really hard to discern actually which on which models are fully on top versus not on top you know there's a lot of argument for example on the internet you know at least in the Twitter feeds that I see um in terms of whether Claude is better or A1 is better and there's a all the comparisons and um between the two of them um so one of the things that I think we're going to need in 2025 are much much harder benchmarks and much much harder evaluations that are going to able be able to help us figure out you know separate the wheat from the chaff a little bit um I don't know who's going to who's going to be in the lead but I do think that um I think that we need much better measurement to actually be able to discern between all of these incredible models that that labs are pushing out right now okay all right we'll take it no no prediction on who's going to be the best but a definite interesting perspective on evaluations Alex great to meet you thank you for coming on the show I think these predictions have been fascinating definitely stretched my mind in areas that I wasn't thinking about so thank you and we hope to have you back sometime soon yeah this was a lot of fun thanks for having me thanks for being here all right everybody thank you so much for listening we'll be back on Friday with Ronan breaking down the news uh we will see you then on big technology podcast podcast