Dwarkesh Patel's AI Lab Review: OpenAI, Anthropic, Grok, Meta, NVIDIA, Safe Superintelligence
Channel: Alex Kantrowitz
Published at: 2025-06-20
YouTube video id: zIEQdAnOfwg
Source: https://www.youtube.com/watch?v=zIEQdAnOfwg
Let's talk a little bit about the competitive side of things and like just lightning round through the the labs. People said that there's been such a talent drain out of open AI that they would no longer be able to innovate. I think Chad GPT is uh still uh the best product out there. I think using 03 is uh like we both have talked about pretty remarkable watching it go through uh different problems. Um, how have they been able to keep it up? Um, I do think 03 is the smartest model on the market right now. I agree. Um, and even if it's not on the leaderboard, by the way, last time we talked about do you measure it on the leaderboard or the vibes, right? I think it's like it's not the number one of the leaderboard, but vibes it kills everything else. That's right. That's right. Um, and the the time it spends thinking on a problem like really shows, especially for things which are much more synthesis based. Um I honestly I don't know what the internals of these companies I just think like you can't count any of them out. Um I've heard I've also heard similar stories about OpenAI in terms of talent and so forth, but like they've still got amazing researchers there and they have a ton of compute, ton of um ton of great people. So I I I I really don't have opinions on like are they going to collapse tomorrow. Um yeah, I don't think I mean clearly they're not they're not on the way to collapse, right? Yeah. Um, you've interviewed Ilaskever. He's building a new company, Safe Super Intelligence. Any thoughts about what that might be? Uh, I mean, I've heard the the rumors everybody else has, which is that they're trying something around um test time training, which I guess would be continual learning, right? So, uh what is what would that be? Explain that. Who knows? But I mean, the words literally just mean while it's thinking or while it's doing a task, it's training. Um, okay. Like whether that looks like this online learning on the job training we've been talking about. I have I have like zero idea what he's working on. Um, I wonder if the investors know even what he's working on. Um, yeah. But he's I think he raised a 40 billion valuation or something like that, right? He's got a very nice valuation for not having a product out on the market. Yeah. Yeah. Or or or for Yeah. So, who who knows what he's working on? Honestly, he's Yeah. Enthropic is an interesting company. They are they made a great bot, Claude. They're very thoughtful about the way that they build that personality. For a long time, it was like the favorite bot among people working in AI among coders. It's definitely been, you know, a top top place to go. Um, but it seems like they're making, I don't know, a strategic decision where they are going to go after the coding market. um there it maybe they're seeding the game when it comes to consumer and they're all about you know helping people code and then using claude in the API with um with companies you putting that into their workflows. Yeah. What do you think about that decision? I think it makes sense like enterprises have money consumers don't right especially going forward these models like running them is going to be like really expensive. They're they're big they think a lot etc. So, these companies are coming out with these $200 a month plans rather than the $20 a month plans. It might not make sense to a consumer, but it it's an easy buy for a company, right? Like, am I going to expense a $200 a month to help this thing do my taxes and do real work? Like, of course. Um, so yeah, I I think like that idea makes sense and then the question will be can they have a differentially better product? Um, and again, you know, like who knows? I I I I really don't know what will how the competition will shake out between all of them. It does seem like they're also making a big bet on coding, not just enterprise but coding in particular because as this thing which we know how to make the models better at this. We know that it's worth trillions of dollars uh the coding market. So and we know that maybe these the same things we learn here in terms of how to make models agentic as you were saying it can go to for seven hours how to make it break down and build a plan and etc might generalize to other domains as well. So, I think that's our plan and we'll see what happens. I mean, all these companies are effectively trying to build the most powerful AI they can. And yes, Anthropic is trying to sell to the enterprise, but I also kind of think that their bet is also you're going to get self-improving AI if you teach these things to code really well. That's right. And that might be their path. Yeah. I I think they believe that. Yeah. Fortune 500 companies which you talked about at the very beginning of this talk uh of this conversation struggle uh to implement this technology. Yeah. So in that with that in mind what's the um what's the deal with the bet that's about helping them build the technology into their workflows because if you're building an API business you have some belief that these companies can build very useful applications with the technology today. Yeah. No, I think that's correct. Like, but also keep in mind that I think there what what is Enthropic's revenue run rate? It's like a couple billion or something. Yeah. Um I think it would increased from 1 to two to three billion run rate in like over 3 months which I mean it's like compared to like OpenAI loses that over a weekend. Um uh Sam Meree doesn't even know when he's lost it, right? It's so little money. Turned out he was a great investor, just a little crooked on the way up. That's right. Yeah. Um, yeah, he went in the wrong business. He should have been a VC like a guy in crypto. I mean, the bets that he made, do you bet on cursor very early anthropic Bitcoin? Yeah. I mean, honestly, some like fun should hire him out of prison just like we got a new pitch. What do you think? I mean, he's probably the way that we're seeing things go these days, he's probably pardoned. Right. Right. Right. Um, uh, anyways, what was the question? Oh, yeah. What are enterprises going to do if oh so the revenue run if it's three billion right now there's so much room to grow if you do solve continual learn it I think like you could get rid of a lot of white collar jobs okay at that point and what is that worth like at least tens of trillions of dollars how like the wages that are paid to white collar work so I think sometimes people confuse my skepticism around AGI around the corner with the idea that these companies are valuable I mean even if you've not like not AGI that can still be extremely valuable. That can worth hundreds of billions of dollars. Uh I just think you're not going to get to like the trillions of dollars of um value generated without break going through these bottlenecks. But yeah, I mean like three billion plenty of room to grow on that, right? And even so today's models are valuable to some extent, right? Is what you're saying. you can put them you have them summarize things within uh within software and make some connections make better automations and that that works well. Yeah. I mean you got to remember big tech what they have like $250 billion run rates or something. Wait, no. No. Yeah. Yeah. Yeah. Which is which is like compared to that, you know, Google is not AGI or Apple is not AGI and they can still generate 250 billion a year. So yeah, you can make valuable technology that's worth a lot without it being AGI. What do you think about Grock? Which one? The XAI or the inference? The XAI. But yeah, um I think they're a serious competitor. I just don't know much about what they're going to do next. I think they're like slightly behind the other labs. Um but they've got a lot of compute per employee. Um real time data feed with X. Yeah. Is that valuable? I don't know how valuable that is. It might be. I just don't I have no idea. um uh based on the tweets I see at least I don't know if the the median IQ of the uh the tokens is that high but okay yes it's not exactly the corpus of the best knowledge you can find if you're scraping we're not exactly looking at the textbooks here exactly uh why do you think meta has struggled with llama growing llama I mean llama 4 doesn't seem like it's living up to expectations and I don't know. We haven't seen uh the killer app for them as a voice mode, I think, within Messenger, but that's not really taking off. What's going on there? Um I think they're treating it as like a sort of like toy within the meta universe, and I don't think that's the correct way to think about AGI. Um and that might be, but again, I think you could have made a model that cost the same amount to train and it would have it could have still been better. So, I don't think that explains everything. I mean it might be a question like why is um why is any one company I don't know like why why is um I'm trying to think of like any other company outside of AI why are HP monitors better than some other company's monitors who knows like HP makes good monitors I guess um uh supply chain there's always supply chain you think so I think so yeah on electronics really okay supply chain because yeah you get the supply chain down you have the right right parts before everybody else. That's kind of how Apple build some of its dominance. There are great stories about Tim Cook, right, just locking down all the important parts. Uh, by the way, forgive me if this is somewhat factually wrong, but I think this is directionally accurate that he locked down parts and Apple just had this lead on technologies that others couldn't come up with because they just mastered the supply chain. Huh. I had no idea. Um, but yeah, I think there's potentially a thousand different reasons one company can have worse models than another. So, it's hard to know which one applies here. Okay. And it sounds like Nvidia, you think they're going to be fine given the amount of compute that all the um all the labs are making their own AS6. So, Nvidia profit margins are like 70%. Not bad. Uh-huh. Not bad. That's right. For a I mean, they would get mad at me, I think, for calling them a hardware company. Yeah. Hardware company. That's right. Yeah. Yeah. Um, and so that just sets up a huge incentive for all these hyperscalers to build their own ASEX, their own accelerators that replace the Nvidia ones, which I think will come online over the next few years from all of them. And I still think Nvidia will be I mean they do make great hardware. So I think they they'll still be valuable. I just don't think they will be producing all of these chips. Okay. Yeah. What do you think? I think you're right. I mean, didn't Google train the latest editions of Gemini on tensor processing units? They've been they've always been training. So, I I mean, they still I think they still buy from Nvidia. All the tech giants seem like they are. Let me just use Amazon for an example because I know this for sure. Uh Amazon says they'll buy as basically as many GPUs as they can get from Nvidia, but they also talk about their tranium chips and you know, it's a balance. Yeah. which I think Anthropic uses almost exclusively for their training right at this point. Yeah, but it is it is interesting because I mean the GPU is the perfect chip for AI uh in some ways, but it wasn't designed for that. So, can you like purpose build a chip that's like actually there for AI and and just use that? You're right. There's real incentive to get that right. That's right. And then there's the other question around inference versus training. Like some uh some chips are especially good given the trade-offs they make between memory and compute for um low latency which you really care about for uh serving models but then for training you care a lot about throughput just making sure the most of the chip is being utilized all the time and so even between training and inference you might want different kinds of chips and who knows how RL is no longer just this um uses the same algorithms as pre-training so who knows how that changes hardware uh yeah you I got to get a hardware expert on to talk about that. Are you a Jevans paradox believer? Um, no. Okay, say more. Say more. So that the idea behind that is that um as the models get cheaper, the overall money spent on the models would increase because you need to like get them to a cheap enough point that it's worth it to use it for different applications. Um, it comes from a similar observation by this economist uh during the industrial revolution in Britain. The reason I don't buy that is because I think the models are already really cheap. Like a couple cents for a million tokens. Is it a couple cents or a couple dollars? I don't know. It's like super cheap, right? Regardless, it depends on which model you're looking at. Obviously, um, the reason they're not being more widely used is not because people cannot afford a couple bucks for a million tokens. The reason they're not being more widely used is like they fundamentally lack some capability. So, I disagree with this focus on the cost of these models. And I think it's much more we're we're so cheap right now that like the more relevant vector or the more relevant um thing to their wider use, the more uh increasing the pie is just making them smarter. How useful they are. Yeah, exactly. Yeah, I think that's smart. Yeah.