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YC Annual Letter 2017

blog.samaltman.com

161–165 of 165 posts

Re: YC Annual Letter 2017

#161
post #79

Earlier quoted context omitted.

> I think the "startup community" needs to have a serious conversation about this... I think part of the conversation is if Google et al are engaging on new kinds of monopoly practices that are not covered by the law. For example, the balance between the amount of information contributed by users in a platform like Twitter or Facebook vs. API restrictions to consume this information. At the same time, antimonopoly la…

I'm not a huge proponent of trust busting. However as I wrote, we need to at least have a conversation about what impact these companies, who have massively outsized power to collect data, interpret and iterate products/services on this data, have on the market. For a specific example: Lets say you are a PhD computer vision team and you want to create a machine vision API, where anyone can upload an image and return…

> Is the bar to compete unreasonably high such that you effectively need hundreds of millions of dollars to compete?

Yes, I think it is so high that we are launching startups in denial and the startup community, in general, is very naive. At the same time being [partially] irrational can be an advantage.

In this context, capital is critical. For example, Uber received almost $ 9B in investments, Spotify $ 1.6B and obviously those investments are oriented to having an advantage that goes much beyond building an app.

I don't think you can obtain an advantage creating a better vision API while you don't have access to the amount of information that companies like Google have. Sooner than later your algorithm will be used by anyone. You can find an apparent contradiction of what I am saying with what Google initially achieved with PageRank but nobody spent too much attention to mimic it at that time while Google was quietly running low cost server for years without revenue. When a few ones started to pay attention it was late: Google has a crawling at hyperscale and moved much beyond PageRank.

Looking at your company (http://www.pair3d.com) I found pretty exciting what you are building. I don't know about AI, AR, or your competitors but probably you have build something that goes beyond just using vision algorithms, and at the same time you have some kind of temporal advantage. I think you should focus on having an advantage at the distribution stage engaging companies to use your platform. Google et al can copy what you did but I don't think they are laser focused in the way you are doing it. Please take it with a grain of salt. You never asked for advice nor I know about your company, but I think it is good to talk using concrete examples.

Re: YC Annual Letter 2017

#162
Hi sama,

I know you wrote that YC Research will likely not expand in the near future. If you do I think the most interesting topic would be the destruction of the journal industry and freeing information. At least in my opinion it would make a lot of sense for YC to try and free as much research as possible which entrepreneurs could build upon. I can only wonder how many more interesting startups we'd get if a random hacker in India or Ethiopia had access to the latest journals on medicine, biology etc. That would take a lot of commitment and being in active position to some powerful interests. This should be attacked from a legal, political and technological angle.

Re: YC Annual Letter 2017

#163
post #79

Earlier quoted context omitted.

> I think the "startup community" needs to have a serious conversation about this... I think part of the conversation is if Google et al are engaging on new kinds of monopoly practices that are not covered by the law. For example, the balance between the amount of information contributed by users in a platform like Twitter or Facebook vs. API restrictions to consume this information. At the same time, antimonopoly la…

I'm not a huge proponent of trust busting. However as I wrote, we need to at least have a conversation about what impact these companies, who have massively outsized power to collect data, interpret and iterate products/services on this data, have on the market. For a specific example: Lets say you are a PhD computer vision team and you want to create a machine vision API, where anyone can upload an image and return…

The barrier of entry s that Google and Facebook can throw much more data at a problem (even design future iterations of their products so that they gather the necessary big chunks). They can get away with better trained, more robust and generally simpler models with less concerns about overfitting (or using and abusing your model too much to match your data).

Re: YC Annual Letter 2017

#164
post #161

Earlier quoted context omitted.

I'm not a huge proponent of trust busting. However as I wrote, we need to at least have a conversation about what impact these companies, who have massively outsized power to collect data, interpret and iterate products/services on this data, have on the market. For a specific example: Lets say you are a PhD computer vision team and you want to create a machine vision API, where anyone can upload an image and return…

> Is the bar to compete unreasonably high such that you effectively need hundreds of millions of dollars to compete? Yes, I think it is so high that we are launching startups in denial and the startup community, in general, is very naive. At the same time being [partially] irrational can be an advantage. In this context, capital is critical. For example, Uber received almost $ 9B in investments, Spotify $ 1.6B and ob…

I think you should focus on having an advantage at the distribution stage engaging companies to use your platform.

That's exactly what we're doing. Thanks for the well thought out response.

Re: YC Annual Letter 2017

#165
post #20

Earlier quoted context omitted.

Oh and they also don't care about you anymore. I feel like there was a time when you could sorta build next to one of these companies and then if you did a decent job they would make sure they don't step on you. Maybe I misread the climate, or eng talent was less plentiful then, but these days it doesn't seem friendly in tech. When we founded the company I'm a part of today I was strongly advised against it by a grou…

Well I think everyone looked at what happened to PARC and said, "no way that is happening to us", so lets keep it quiet, and don't collaborate as much. The competition is too high now to be friendly.

And there's the stories like the valve engineers helping oculus out only for oculus to launch on Kickstarter and be a major competitor to valves own VR efforts.
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