AI Proem Podcast

Grace Shao

Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. aiproem.substack.com

  1. Future of mobility, a deep dive into the forces driving the Chinese EV revolution with Tu Le

    −6 d

    Future of mobility, a deep dive into the forces driving the Chinese EV revolution with Tu Le

    Hi all, I’m really scared to even share this episode because the last time I recorded an episode with Kyle Chan and mentioned cars, I got ripped online. So I just want to emphasize again that for car enthusiasts, I AM NOT A CAR person. I am here to learn. Haha, ok now that I’ve made that disclaimer… Joining me today is the ever-so-knowledgeable Tu Le. He is the founder and managing director of Sino Auto Insights, author of the SAI Weekly Substack, and co-host of the China EVs and More & At The Wheel podcasts. He has worked across Detroit, Silicon Valley, and China, so he views the industry from the inside, through the traditional auto industry, the tech industry, and the Chinese market. I wanted to do this episode almost as an educational primer, not just for you all but for myself as well. Most people now understand that Chinese EVs are competitive. But very few people understand why and how that is translating into the Physical AI space. We talked through the Chinese EV landscape, why traditional OEMs struggled to make good EVs, how autonomous driving fits in, how these carmakers are integrating AI, and why home appliance and smartphone companies like Huawei, Xiaomi, and Dreame are suddenly making cars. Follow Sino Auto Insights here: https://x.com/SinoAutoInsight For consulting inquiries, go DM Tu Le on LinkedIn! Website: https://www.sinoautoinsights.com/ Btw, I’m rebranding Differentiated Understanding to AI Proem Podcast. To find the previous episodes of Differentiated Understanding, see here. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, researchers, founders, and product managers. For more information on the podcast series, see here. Chapters 00:00 Introduction to Tu Le and Sino Auto Insights 04:28 Mapping the Chinese EV Industry 09:19 The Rise of Xiaomi in the EV Market 14:17 Understanding BYD’s Market Position 17:54 Challenges for Traditional OEMs in EV Production 31:29 The Role of Government Subsidies and Policies 36:12 AI Integration in EVs and the Future of Mobility 45:13 The Evolution of Brand Experience in EVs 46:53 The Future of Manufacturing and Market Dynamics 50:46 Safety Concerns in Rapid Development 52:51 Current Landscape of Autonomous Driving in China 57:51 Challenges in Deploying Autonomous Vehicles 01:05:00 The Future of Mobility and Urban Planning AI-generated transcript (for reference only) Grace Shao (00:00) Hi Tu. Thank you so much for joining us today. I’m really excited to have you on. Tu Le - Sino Auto Insights (00:04) Thanks for having me on, Grace. Grace Shao (00:06) Yeah, to start, why don’t you tell us a bit about yourself? We were just having this conversation right before recording. I find your background really fascinating.You know, you can talk to a very diverse group of kind of people. You run a successful consulting gig, a consulting company. Tell us about everything that you do. Tu Le - Sino Auto Insights (00:24) So name is Tu Le I’m the managing director at Sino Auto Insights. I also create content. I run or I co-host two podcasts, China EVs and more, and at the wheel with my co-hosts that are very, very good at what they do as well. And then I write a weekly newsletter, almost weekly anyways, called Sino Auto Insights Weekly that just kind of goes over my thoughts on what’s happening in the industry now globally every week. And I’m actually not Chinese. I’m Vietnamese. And I was born in Vietnam and moved to the United States when I was a year old and grew up right outside of Detroit. My whole family, youngest of eight, whole family’s automotive. So grew up car kid and did that for a few years before going back to grad school and moving to Silicon Valley to work for seven years. So that’s where the knowledge of the tech comes in, especially the hard tech, where hardware software integration is such an important part of creating a great user experience. And then I met a girl and in San Francisco. my girlfriend, who’s now my wife, was transferred by her company over to Beijing, where she was born. And I decided to pull the ripcord and and follow her over. And what we thought was going to be a three- or four-year assignment ended up being thirteen. And during this time I worked in automotive; I worked at a few Chinese EV e-commerce startups. And so that’s when I learned and experienced nine nine six myself for about two years. And yeah, it’s not fun, super intense, but again I wouldn’t trade those experiences for the world because it gives me the perspective that I have now. about eight years ago I saw this huge disconnect because EVs were becoming a thing because of Tesla. Companies like NIO and XPeng had just been founded. And you know, in Beijing, as you know, Grace, there’s a lot of the German OEMs, and so there was a bit of arrogance about how hard or how simple they thought software was and really, really being consumer focused as opposed to product focused. So I saw this opportunity, and I started this consultancy, Sino Auto Insights, and you know we’ve been growing since we’ve done traditional work. We’ve worked with the UK government, US government on things. And then also when I moved back four years ago from Beijing, I left during COVID. So August of 2022 and then November, December timeframe, China opens its border and says, What COVID? Come on in. So we didn’t know that was going to be the case. so we decided to move back. And we opened an office here in just outside of Detroit. And we’ve been helping more on the investment side, looking for investment opportunities, what’s around the corner, but also giving our clients a better understanding of the Chinese EV players and the battery players and what they’re doing outside of China. So it’s a very, very interesting time. The mobility space, as you know, Grace, involves now AI, silicon, data centers, data privacy, data security, batteries. So it’s just, just a tremendously unique sector that I get to be a part of. Grace Shao (03:55) Thank you so much for sharing your life story. First of all, kudos to your mother. Eight kids. Like, I don’t know how she did that. Like I have two and I’m already dying. And also, I love your personal touch, you know, why you moved to Beijing and just learning about your background. I think it’s super fascinating. You pointed one thing out. Like when I was living in Beijing in Shanghai as well, I met a lot of German OEM like employees and people kind of low key don’t know this, that there’s a huge German community i it in the huge like and and French as well. A lot of Europeans are actually working in China for these, especially like luxury vehicle companies. and a lot of them did relocate out of China during COVID times. And a lot of them I’ve even heard anecdotally from two friends who say they’re dying to get back because they were born in Munich or Frankfurt. just because they’re so bored. Tu Le - Sino Auto Insights (04:23) Huge. We hear those stories a lot, don’t we, Grace? We hear those stories a lot. Grace Shao (04:48) it’s just because it’s just the fast-paced energy in China. However, okay, COVID was crazy. China’s fast paced. Let’s get to that actual topic today. I wanna talk about EVs. I wanna learn everything from you. so before we get started, when we think of Chinese EVs, most people outside of China think of BYD. think of maybe like the few other ones you mentioned, like NIO X Peng. Now Xiaomi Dreame, which is crazy; essentially, these home appliance companies are going into the space as well. they are there are state-owned companies, there are old independent automakers, there are startups that we just talked about. And then some of them also produce batteries; some of them are, like I said, home appliance and phone companies. Basically, all of these different moving parts, they’re all coming into the same arena. Help us map out the industry first. Like to start with, who are the main players? What are the buckets? what does each group bring to the table or what’s their differentiating kind of offering? I know this is a very big question, but start with a big picture. Tu Le - Sino Auto Insights (05:45) So well, let me press rewind and kind of frame it and create more context as opposed to just we’ll we’ll zoom out and then we’ll zoom into the China market. So last year, twenty twenty-five, Toyota was the number one global automaker, eleven million units, around eleven, just over eleven million units. Volkswagen was number two at eight million. To give you a sense of scale, Tesla was one point six. million units and BYD was about 4.6, which makes them a top 10 automaker. The other top 10 automaker for the Chinese was Geely. Geely and everybody else outside of BYD and Tesla build ICEs and EVs. Or in China, they call them NEVs, new energy vehicles, which means that they’re battery electric vehicles plus plug-in hybrids, E Revs, and then fuel cells. So fuel cells, for our intents and purposes, are rounding error. So when we talk NEVs, we’re talking battery electric and plug-in hybrids and extended range electric vehicles. So Toyota’s been number one for a long, long time. And you know, the China market has been the number one passenger vehicle market since 2009, overtaking the United States. And now the China market is almost twice as big as the US market. If we add the European market, which is around 12 and a half, 13 million units, and the US market, which is around 15 and a half, 16 million units, it’s almost the same as China. And so the scale of the China market is enormous. And so to talk about EV specifically, I would create different sets of buckets. And I would look at BYD, Chery, Geely, Great Wall as separate companies, SAIC because they produce in the

    1 tim 23 min
  2. Where does Europe fit in the so-called China-US AI race?

    8 juni

    Where does Europe fit in the so-called China-US AI race?

    Joining me today is Alex Lu, who offers a unique perspective. Alex works at the intersection of three very different AI worlds: China, Europe, and enterprise transformation. Having spent more than a decade in France and now advising European companies on AI adoption (often Chinese models), he offers a perspective that is often missing from the broader AI conversation, which is typically framed as a competition between the United States and China. In this conversation, we explore how European companies are actually approaching AI implementation. Rather than racing to deploy the latest models, many are focused on organizational design, employee adoption, process changes, and measurable returns on investment. Alex explains why European firms tend to be more cautious than their Chinese counterparts, how concerns around AI sovereignty shape technology decisions, and why companies increasingly find themselves balancing U.S. frontier models, Chinese cost-efficient models, and European alternatives such as Mistral AI. We also discuss the economics of AI adoption, including the emerging concept of “tokenmaxxing” or rather if that is even the wise path forward, whether AI is truly replacing jobs, how companies should think about ROI when AI introduces variable costs, and why the future may involve token budgets becoming as commonplace as mobile data plans. Finally, we explore Europe’s position in robotics, industrial AI, and regulation, and whether Europe’s strength may ultimately lie not in building the largest and best-performing models, but in defining how AI is deployed responsibly at scale. To find the previous episodes of Differentiated Understanding, see here. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, researchers, founders, early adopters, and product managers. For more information on the podcast series, see here. AI-generated transcript (for reference only) Grace Shao (00:01) Hi Sheng Yun. Thank you so much for joining us today. Really excited to have you. Alex Lu (00:05) Yeah, thanks very thanks for inviting me. I’m also very excited to have this conversation with you. Grace Shao (00:11) Yeah, awesome. So tell us about your journey. I think you’re in a pretty unique position. You know, like I said in the intro, you know, a lot of the conversation about AI right now is often positioned between China versus US, But you actually work predominantly with European companies in adopting AI and their digital transformation. So tell us about your your background and how you got into this. Alex Lu (00:31) Yeah. so thanks a lot. So actually, I went to France. I spent more than 10 years in France. I went to France in 2004 and I studied in a school called Ecole Polytechnique. and then when I graduated from the school, I started my work in in Europe, mainly for automotive industry and afterwards for the consulting industry. And still when I was in the consulting industry, I worked mainly for for the auto sector. So I have a very traditional background of automotive. That’s why some of the work I’m doing currently in the in the AI, we can come back on that, is in the automotive manufacturing sector and mainly for European companies. Because I started my career in Europe, so I know I don’t I know them pretty better, pretty good. And the the the other thing point I want to mention is the school I started actually the Ecole Polytechnique was Let’s say it it was a famous school in France or in Europe, but it it’s not so famous in in the world. actually this is in France they have a different educational system. but still with the with the rising of of AI in Europe, especially the French large language model called Mistral AI, the school becomes famous because the founder of the of of of Mistral AI comes from the the same school. So basically it’s also a a little bit like Tsinghua university in China is like the the Tsinghua in in France, having the best talents for for the AI. So nowadays, when I continue my work in the AI transformation for companies or AI implementation for the companies, I work a lot with European companies. Firstly, I know that my I as I said before, and secondly, is when we look into the global competition between China, US, and Europe. In the AI landscape, it’s pretty clear. It’s like China and and US or US China being the tier one or first ranked models. And Europe is kind of lagged behind. So most of the European European companies, they have this kind of attitude of being a little bit complex, I would say. on one hand, they are kind of seeking for, of course, for the best technology in the in the world to enhance their company’s competitiveness. There comes the question, how I can define my AI strategy for next year’s between Chinese and US tech stack in AI. And the second question they raised often is while we are European companies, we want to keep keep our AI sovereignty, which is a very important topic in AI. again, we can come back on that. So their question is: okay, between this US and China tech race. Is there any place for European companies regarding the foundation model companies or application companies or even corporate clients? What could be the playground for European companies? So these are major two questions are often received from European companies and you will you can see the thinking angle is they European companies want to at the same time keep it keep the AI sovereignty and at the same time keeping their competitiveness. That makes the question a little bit complex. Yeah. Grace Shao (03:49) Actually why don’t we just double click on the unpack that a little bit? What’s your view on it? Like what what do you advise your clients to do then if if they are kind of cut caught in a pickle or unsure how to build out the next stage of their infrastructure kind of being caught in between China and the US? Alex Lu (04:08) Yeah. So the the first thing I I always shared is in in in this tag race actually China and US we are not I want to twist twist a little bit the angle saying this is a competition between China and US. Actually, if we look into details, actually China and US are taking different directions in terms of the AI development, if I can say, because let’s say if we look into the US, AI ecosystem or the AI development. I think a lot of efforts are put on the foundation model or kind of foundational research regarding how AI can be become AGI can be bring beneficial benefits to the humanity, or how we can guide Rails AI so that okay, one day we will not go into the direction of science fiction movies. So this is a little bit the the push from the US AI companies. While in China, actually the ecosystem or from the national perspective, China’s AI is more about applications and more about how we can have the s beneficial from the whole society from the AI and how I can combine AI with my traditional technologies or traditional business to to to to to grab more values. So if we think in this angle, actually it will give us two different pictures. One is we cannot say that it’s kind of from front to front front competition, because these two nations are just take different angles. The second thing is if we look into details based on these assumptions, we will say one nation is pursuing having the most advanced AI technology and one nation is pursuing most kind of most beneficial AI for the society regarding cost effectiveness, et cetera, et cetera. So then it comes to the question that you raised for European companies is We always brainstorm and conclude on the simple question is what kind of AI are we looking for for European companies? Are we looking for, let’s make it simple, I take some an analogy. Are we looking for kind of you need all the employees to be the PhD employees having the most intelligence in the world? Then that will be the US foundation models. Or if we want to say we have the most cost efficient and best performing employees, virtual employees in your company. Then we might consider Chinese models, foundation models. Then this is the trade-off. I think the companies should figure out. And the answer will not be so simple like that, saying, tomorrow I will switch to all US tech stack or Chinese tech stack. I would say the two ecosystem, as in the past in the digital area, will still continue for European companies, meaning that they need to juggle with Chinese tech stack in certain markets. maybe in Chinese market for sure, but for other markets, developing markets where the Chinese foundation model are taking influence and as well as with US models. So this is the thing. And I think the other angle answer to to to their question is I I usually take the statement from Jensen Jensen Huang saying the AI is kind of five layer cake. So what we are talking about is only one layer, which is the foundation model. And if we go deeper, then we will have infrastructure like data centers, like powers, chips, and electricities. And if we go upper, we will have the applications. So I would tell European companies or I told European companies often is I think the use cases in Europe makes a lot of sense because the cost is there and the employee was pretty much expensive than Chinese employees. So if we deploy the same model, let’s say, and it of cost the ROI return on investment, you make the business case very easily in Europe than in China because the labor cost is kind of lower. And the the advantage of Europe, one I would say one of the advantages is about power and electricity. I study in France and in France y you would see they have the most advanced nuclear nuclear power technology in the world, at least in the past. And I think the French government is also think about how we can build more power plants in the in

    1 tim 10 min
  3. China’s internet ecosystem, manufacturing base, batteries, EVs, robotics, and semiconductor becoming an AI-enabled industrial system

    1 juni

    China’s internet ecosystem, manufacturing base, batteries, EVs, robotics, and semiconductor becoming an AI-enabled industrial system

    In this episode of Differentiated Understanding, I spoke with THE TP Huang, an independent China tech analyst known for his work on fintech, EVs, batteries, AI, semiconductors, and the broader China industrial ecosystem. The conversation traces China’s technology evolution from the early internet era to the present. TP argues that China’s internet ecosystem was shaped by a combination of censorship, protectionism, local engineering talent, and intense competition. That created powerful domestic champions such as Tencent, Alibaba, Huawei, Baidu, and ByteDance, which later became the foundation for super apps, payments, e-commerce, cloud infrastructure, and AI. The discussion then moves into China’s shift from software and internet platforms into hard tech: EVs, batteries, robotics, drones, semiconductor supply chains, and AI-enabled industrial systems. TP emphasizes that China’s technology companies are unusually willing to enter each other’s markets. Xiaomi moved from phones to chips and EVs; Huawei moved from telecom to semiconductors, AI chips, and autos; BYD moved from batteries to cars, solar, transit, chips, and potentially robotics. A major theme of the episode is that China’s AI story is not only about large language models. It is also about the physical stack around AI: batteries, sensors, motors, chips, power systems, critical minerals, factories, and real-world deployment. TP argues that this manufacturing and supply-chain density may become a major advantage in embodied AI and robotics, especially as real-world robot data becomes more valuable. Follow TP Huang here on X or Substack here To find the previous episodes of Differentiated Understanding, see here. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, researchers, founders, and product managers. For more information on the podcast series, see here. Chapters 00:00 The Evolution of China’s Tech Landscape 05:58 China’s Internet and Tech Sovereignty 09:01 Investment Trends in China’s Tech Sector 11:04 The Role of Government in AI Development 20:00 The Intersection of EVs and Robotics 26:07 China’s Competitive Edge in EVs and Robotics 36:18 Global Strategies of Chinese EV Companies 42:31 Advancements in AI and Robotics in China 48:31 China’s Digital Infrastructure and AI Adoption 57:38 Underappreciated Developments in China’s Tech Landscape 01:00:00 Non-Consensus Views on China’s Economic Health AI Generated Transcript (for reference only) Grace Shao (00:00) Hello everyone, welcome back to another episode of Differentiated Understanding. I am your host, Grace Shao. As many of you know, I also write the newsletter AI Proem, which is AI PROEM on Substack, so do give that a follow. Today we’re doing something special. We’re doing an audio-only version. I’m joined by TP Huang, an independent China tech analyst who writes about the intersection of fintech, EVs, batteries, AI, and broader China industrial policy. He has built a large following on X and Substack by combining data, supply-chain detail, and geopolitics to explain where China tech is actually heading. In this conversation, I want to use TP’s lens to understand the bigger China tech landscape: how China moved from internet platforms and payments into EVs, batteries, robotics, and now AI-enabled industrial systems. And since he quite literally said, “I can talk about anything China tech,” when I reached out, this conversation may follow the themes that I prepared, or really just go anywhere it naturally takes us. Very excited to have him on. Welcome, TP. Grace Shao (00:02) Hi, TP. Thank you so much for joining us today. I just did your intro before talking to you. And I told everyone that when I emailed you and reached out, I said, here are some topics I want to talk about. Is that okay? And you quite literally said, “We can talk about anything China tech.” So the conversation today could cover quite a lot of bases. I’m so excited to hear from you and have you kind of dissect a lot of your knowledge for us. And, you know, I’ve been a big fan of following your Twitter, your X, for a long time. Anyhow, thank you so much for joining us today. TP (00:33) I’m just really glad to be here, Grace. Grace Shao (00:37) Yeah. So you’re a mysterious man. Give us some color on your background and why you are so knowledgeable about China’s tech ecosystem, because you’ve really been covering everything from robotics to LLMs to the internet era. You cover them all, including hardware and chips and everything. TP (00:56) Yeah, so it’s kind of interesting that my actual background is not very technical in that area because I’ve been working mostly in the finance sector, or fintech sector slash crypto, for most of my working life. And I did spend a year recently working in an AI firm, so that was something different. But now I’m back to doing more crypto kind of stuff. So my background, I guess now, is a lot more AI-related. But a lot of the interest I had back in the day was in the renewable space and climate change and things like that. So that really got me started following solar panels, wind turbines, and then EVs. I first read about BYD back in 2008, like a lot of other people. And then as EVs were really taking off in China, that’s when I thought, okay, I really need to understand the full tech stack behind it. So that kind of got me into the entire battery supply chain, a lot of the upstream stuff, and then chips. The chips part became such a big deal because of AI. So then we had the October surprise back in 2022. That’s when I decided, okay, I’m really going to try to understand how the semiconductor manufacturing part of it works also. And thankfully, I was able to be connected to a lot of people. That allowed me to really understand a lot more. So I don’t profess to be an industry insider or anything like that. I’m just talking to other people who are working in the industry for some knowledge and writing about it. And then with AI, I actually worked on my own, no, not on my own. I worked with an AI startup, and one of the projects we did was actually for an AI toy. So I had experience running what I would consider to be AI robotics efforts. So I have a lot of real-time experience with embodied AI and also just using large language models. That’s kind of how I got into all this stuff in the first place. Grace Shao (03:26) It’s really cool because you have experience across the whole array. One personal question is: what drives you to really continue writing? Because you do write prolifically on Twitter. You have these hot takes, you put things together, and I think you’re quite widely followed by anyone who covers China tech. So what makes you want to share things publicly? TP (03:49) Yeah, I guess it’s more like a personality kind of thing, where I really just enjoy writing. And I think there’s something missing in the information space about what is going on in China. Last summer I was in China for a month, and I plan to be in China again for a month this summer, and I just saw a lot of really cool stuff. I think it’s good for the world as a whole to understand what’s going on in China, for Americans and for all Westerners to understand what’s going on in China, so that we are better informed in understanding how people can work with China and what kind of things people who want to compete against China need to know. But as a whole, I think it’s better to get proper information out there. And because China is a different language, and most people in China post in their own internet ecosystem on Weibo or WeChat, people don’t really read this stuff. So they get their sources from very bad sources on the English internet. A lot of them are just missing the nuance of what’s actually going on inside China. So because there is this vacuum, I just felt I’m obligated to actually do something about it, to help everyone understand better. Grace Shao (05:31) That’s awesome. It’s part of why I write AI Proem too. Well, okay, let’s get into the real stuff today. You’ve been following China’s tech for a while, like you said. Help us understand, just with the sentiment shift, how you view the early internet era to today’s success in hard tech and AI. What really has propelled China’s success in the tech sector in the last 10 to 20 years? TP (05:58) Yeah, so I think if we look back on things, China made a pretty big bet on developing its tech sovereignty back in the early 2000s and 2010s. It put a lot of policy in there under censorship reasons. It said, we’re blocking, we don’t want Google or whoever wants to enter China to actually censor the search results so that it fits our local law. And then what actually ended up happening was it became more of a protectionism kind of thing. So China was protecting the local tech champions at the same time that it was pouring a lot of money into these firms. So it allowed firms like Tencent and obviously Huawei and Alibaba to grow up. Later on, China also developed ByteDance. And if you look at how things are around the world, most countries, most leading Western countries that could have possibly developed their own tech ecosystem, like European countries or Japan, didn’t do it. The only other country that has a pretty robust local tech ecosystem or tech champion is Korea with Naver. And if you go to Korea, you notice that if you’re using Google Maps, it’s almost unusable. You kind of have to use Naver. So I think there’s a clear correlation between blocking US tech and some level of protectionism to having a local tech ecosystem being developed. And obviously it requires good local engineers also, so that they can take advantage of that. But China ha

    50 min
  4. The reasons to open-source and the future of AI bootstrapping with Tiezhen Wang

    25 maj

    The reasons to open-source and the future of AI bootstrapping with Tiezhen Wang

    Joining me today is Tiezhen Wang (Tom), formerly of Hugging Face, where he worked with researchers in China, Australia, South Korea, Japan and across APAC, to help make open-source models more discoverable, usable, and visible to the global developer community. In this conversation, Tiezhen explains why Hugging Face became the GitHub for models and why open source is not just a distribution mechanism but a different way of coordinating research. We discuss why Chinese AI labs have leaned so aggressively into open models, how DeepSeek changed the commercial logic of open source, and why Qwen, Kimi, GLM, MiniMax, and others are using openness as a way to win attention, recruit talent, and accelerate the whole ecosystem. His core argument is that China’s open-source AI push has three layers. At the researcher level, open source preserves attribution and career mobility. At the company level, open models can become benchmark-led marketing, developer distribution, and a recruiting advantage. At the ecosystem level, government and university incentives are beginning to cultivate open-source culture among younger engineers. We also discuss why US frontier labs have pulled back from openness as research and business have become more tightly coupled, why distillation is much murkier than the public debate suggests, and how DeepSeek’s releases increasingly function as shared R&D for the broader AI ecosystem. The conversation then turns to monetization: why open-weight labs can still make money through API tokens, base-model access, post-training services, and inference optimization. Finally, he lays out his current thinking on AI bootstrapping: the idea that agents may eventually help improve their own harnesses, generate training data, and even improve the models they rely on. We close on a more philosophical question: if a handful of closed labs control access to frontier capability, open source becomes more than a technical preference. It becomes a check on the concentration of power. Tiezhen/ Tom is based in Sydney, Australia. Feel free to reach out to him on X to chat. To find the previous episodes of Differentiated Understanding, see here. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, researchers, founders, and product managers. For more information on the podcast series, see here. Chapters 04:07 The Philosophy of Open Source at Hugging Face 12:51 Challenges and Opportunities in Open Source 17:12 The Role of Collaboration in Research 21:50 The Future of Open Source and AI 33:58 What Constitutes Distillation in AI 37:18 Navigating Copyright and AI Distillation 37:43 The APAC AI Landscape: Insights Beyond China 43:08 Understanding the Ecosystem: Labs vs. Hyperscalers 46:21 Monetizing Open Source AI Models 52:02 The Future of AI: Bootstrapping and Self-Evolution Transcript (AI- generated for reference only) Grace Shao (00:00) Tie Zhen thank you so much for joining us today. I’m really excited to have you on. We’ve been trying to make this happen for a while and just so glad the timing’s finally worked out. To start, can you tell us a bit about yourself, your journey, and where you’re at right now in your career and how you see the whole ecosystem? And also, just help us understand Hugging Face a little bit as well. Tiezhen Wang (00:19) Yeah, thanks, Grace, for inviting me. I know, sorry for the long delay. It has been a while, but I’m recently in transition because I just left Hugging Face. So to give you a quick information about very high-level overview, you can think of Hugging Face as the GitHub for AI. If you are not familiar with GitHub, you can think of Hugging Face as Amazon, where you can find all kinds of models in one store. And we are helping, so my job is to help researchers to get their models, which is the open source models on Hugging Face. And they can use the best, like all the tools, all the services on Hugging Face to make their models more discoverable and available to everyone. We also offer all kinds of technologies. For example, we allow them to create demos so that developers do not need to download the whole models. and they were able to try it out and see how it goes. And we also offer services so you can create your own agent using open source models. We do all kinds of scaffolding on top of open source models. another part of work that we do is to help them get more traction. We use LinkedIn. I use Twitter mostly to help them getting well known by the public. And we write analysis on their models and letting people know what are the new inventions from the model, et cetera. we work with researchers across the world. Like myself, it’s focused on APAC, especially Chinese researchers. Yeah, that’s pretty much the goal. quick overview of what I do. If you have any questions, just let me know. Grace Shao (02:03) And how did you get to this role? Because I understand you were with Google for quite a while as well. Tiezhen Wang (02:07) Yes, I was with Google as an engineer. work on ML frameworks. But then we had a bunch of reorg. And I was assigned to a project which is not open-source. But I really like talking to people in the open source world. It’s kind of very different. So when you are paid to work something versus you want to work on something yourself, Like you have very different mentality and very different feelings. So when I was working on the open source machine learning framework, I talked to people outside Google. And I can see the stars in their eyes. They do want to work on something they want. And even though they may not get paid, et cetera, I really like this feeling. So after I was assigned to the non-open-source project, I want to try something like new but also in open source and I was like talking to people in Hugging Face and I really liked them. At that time, like Hugging Face was not like part of the mainstream. It was like a niche product for researchers where researchers can upload models. But I do see there’s a huge potential for Hugging Face to grow up because first I believe in open source and the second like Hugging Face is going to be the entry point where like all people will come in and search for open source models. But the most important of all is that I feel that Hugging Face is a company who understands how open source works. Open source is a huge leverage. If you use it well, it’s going to be very powerful. And Hugging Face is like 200 people, like very small companies compared to other companies growing up from the same area. But they are able to use open source as a leverage. and called for collaborations across the world and do very impactful things. a lot of people, a lot of big companies are doing open source, but they just don’t understand this age. That’s the essence of open source. And I do feel that Hugging Face is doing really well there. That’s one of the reasons why I want to join Hugging Face. Grace Shao (04:06) Yeah, I think that’s amazing. I think that’s something we definitely will double click on later, especially when we talk about why China’s labs seem to have been embracing open source. Just kind of one last question on just the whole ecosystem and how hugging face fit into it. What was the philosophy really held by the whole company? Because I actually listened to one of the founders interviews, Clem’s interview recently. And during the interview, he talked about how Chinese scientists have always been long term contributors to open source technology. And then he said it was really like kind of a pivotal moment around 2022 where American open source contributors kind of took a step back and then there was a sentimental shift in the ecosystem. Why is that and how does Hugging Face kind of view the whole ecosystem? Tiezhen Wang (04:47) Yeah, there are several questions. Let me try to address them one by one. The first one is the philosophy behind Hugging Face. I think it’s really the mindset. so anything that we see where we can have a collaboration, like Hugging Face will just reach out and see if we can collaborate. So if you go to see a lot of work released by researchers, they will have paper on arXiv. and also their project on GitHub. And you’ll see me on all of these issue number one, which is the first issue after the repository has been released. And we just write something saying, offer blah, blah, blah. Do you want to collaborate on something? So for anything that we can collaborate on, we will just call for collaboration. And some we’ll go through, some we’ll not. But this collaborative mindset is very, very different from. like a business point of view. From a business point of view, you will first think, what is my edge and how I win the market, how I compete with others, and what are the end areas. After the competition, what’s the end game, how it will go. So that’s the way of how you can justify the investment and everything. In open source world, it’s totally different. It’s like, I want to do something. I just say it and I do it and there are developers who want to join in and we do it together and we grow the pie gradually. we do not have like, let me put it the other way. So if you see an open source model coming from one of the Chinese lab, for example, GLM 5.1 is released and you may think like Kimi or Minimax like other open source model provider. in China would compete with them. But actually not. Like you will see they are commenting on the Twitter saying, congratulations, et cetera. This is a collaborative mindset where everyone is stepping up on each other. we can do a lot of, as a group, can continue to push the frontier forward. So I think this is very, very different. Yeah, and talking about your second question, the Chinese, well, I wouldn’t

    1 tim 3 min
  5. Nathan Lambert Reflects on China’s AI Labs: DeepSeek, Open Models, and the 'Race' with the U.S.

    19 maj

    Nathan Lambert Reflects on China’s AI Labs: DeepSeek, Open Models, and the 'Race' with the U.S.

    Joining me today is Nathan Lambert, author of Interconnects AI and a post-training lead at the Allen Institute for AI. Nathan recently returned from a major tour of China’s leading AI labs, where he met with researchers and teams building some of the most impressive open models in the world. In this conversation, we discuss what Nathan saw on the ground: how Chinese AI labs differ from their U.S. counterparts, why open models have become such an important part of China’s AI strategy, and how labs like DeepSeek, Alibaba, ByteDance, Kimi, Z.ai, MiniMax, and others are navigating compute constraints, data access, and commercialization. We also dig into some of the most debated questions in AI today: Are Chinese labs really 6-9 months behind U.S. frontier labs? How meaningful are distillation accusations? Can domestic chips like Huawei’s make up for restricted access to Nvidia GPUs? And is China’s AI ecosystem actually government-directed, or is the reality more fragmented and commercially driven? Ultimately, this episode is a more nuanced look at China’s AI ecosystem that looks beyond simplistic narratives about subsidies, copying, or geopolitics, and instead examines the technical, cultural, and economic forces shaping the future of open models. Check out his two recent articles here: * Notes from inside China’s AI labs * How open model ecosystems compound To find the previous episodes of Differentiated Understanding, see here. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, researchers, founders, and product managers. For more information on the podcast series, see here. Chapters00:00 Insights from the China Trip11:51 Cultural Differences in AI Research18:15 The Role of DeepSeek in China’s AI Ecosystem25:26 Overview of Major Chinese AI Labs30:56 The Future of Open Source in AI37:50 Market Dynamics and Consolidation in AI42:28 Distillation and Model Convergence Controversies51:58 The Gap in AI Performance: US vs China61:09 Monetization Strategies in AI: A Comparative Analysis62:32 Government Influence and Misconceptions in AI Transcript (AI-generated for reference only) Grace Shao (00:00) Nathan, thank you so much for joining us today. Yeah, really, really excited to finally hear your thoughts on your big China trip, on what’s happening between the Chinese AI labs and the U.S. AI labs, what you think the potential compute constraints might mean for these labs and their performance in the future, and obviously the open-source ecosystem. So before we get into all of that, could you... Nathan Lambert (00:02) Yeah, thanks for having me. Grace Shao (00:23) Briefly tell us about how you ended up actually working on post-training and open language models. Just a bit about yourself. Nathan Lambert (00:29) Yeah. So I actually started my PhD at Berkeley in 2017, not working on AI things. I was an electrical engineer by training in undergrad, which is funny looking back, because that’s the same year that the Transformer paper came out. And I was like, I think I should do this AI thing, and tried to get the famous advisors to mentor me. And they’re like, we can’t take you. So I had my PhD as this wandering path to become an AI researcher. And then I ended up at Hugging Face after that, which was, realistically, the only industry research job that I had, but also a very hot startup and very fun to learn kind of at the intersection of these tools that people use a lot for AI and research, which is what I was doing. And then when ChatGPT hit, the kind of RLHF thing blew up as the hot word on the technical side of things. My PhD had ended up being in reinforcement learning, which is just the first half of reinforcement learning from human feedback. So it was kind of a natural pivot to be like, well, I might just do that. And Hugging Face was a good place for doing that, because the whole company is kind of all for that, which is like: figure out how to support the community on the hot thing and build platforms there. So they were very happy about that. And I helped build a team at Hugging Face. And then I was kind of burnt out on the remote-work time-zone thing and found out that the Allen Institute was doing such similar stuff. And I was like, wow, I have people that could be in-person friends and do similar things. I was like, quality of life — I need to do this. And a few years later, I ended up building a bunch of models. And I think being at a nonprofit opened me to this ecosystem vacuum of information, where there aren’t many people who can talk about what they’re doing. So then, with some luck and committing to write every week, I just feel like my influence filled the vacuum of nobody saying reasonable things. And it is this nice synergy between what I write about and what I work on in my day job, and it just kind of got bigger and bigger in a very fun way. I think that, generally, at the highest level, I’m motivated by wanting AI to go well on this trajectory. And I worry about a lot of near-term things, whether it’s social unrest in the U.S. and just kind of the massive hatred for AI — I think is a very big near-term problem — and then, medium term, concentration of power, because I think AI will be super powerful in ways that people don’t expect. So generally, open models are a nice way to curb both of them by being a bit more transparent to people, and it naturally is a hedge against concentration of power. There have been different reasons throughout that, but that’s kind of a recurring theme in my life in the last few years. Grace Shao (02:50) Definitely. I love your work because I think you help non-technical people like myself really understand what’s behind what’s happening in these labs a lot better. And then I actually just spoke to your former colleague, Tiejin Wang, and he was with APAC Hugging Face just last week. He was saying the same thing. Open source, in many ways, is kind of the best way to go forward as we know that this technology will not stop evolving, but it’s the best way to kind of put up guardrails and checks and balances for the monopolies. Okay, I don’t want to take up too much time on that side of things today because our focus really is about your China trip. Before we get into the weeds of all that, I want to hear about the trip itself. Most people who are writing about Chinese AI are getting their information secondhand. You really went there, you spent time with the researchers, you met with people who are building the models. Tell us about what you meant when you said you came back with great humility, right? Your eyes are a bit more open, whether it’s the good or the bad. Tell us about your trip. Nathan Lambert (03:50) I feel like I kind of went in — I mean, I had this horrible English phrase in my writing, which was like, “I knew I knew nothing about China,” which kind of tried to indicate that I knew going into the trip that I knew nothing. And it was still the fact in my current writing. This is a horribly written sentence that I had in there. And I only talk about it because somebody called me out on it. It’s like, what is this? And it’s like, leaving, which is knowing that it’s such a big country, there are just such vast amounts of talent working on these problems, and how unpredictable it is as a human to model people with very different worldviews and upbringings and training systems. Realistically, the way that people are trained in China is very different. And I just think that even being there, you can’t fully grasp: what are the pockets of three to six researchers doing that is actually a bit different than in the West, even if they’re working on the same goal? I think you could get down to that level of granularity and a sociological study and actually see differences in what they’re working on, and that’ll always change the output. I didn’t get to that level of granularity, but it’s just to start having real experiences and understanding how people explain how they work on these problems. And for me, realistically, a lot of it is coalition building, which is just like: I want there to not be vitriol at the level of the technical companies doing things in international bodies. So just meeting all the labs on both sides is really nice, because you need to do that for them to talk to you about more sensitive issues in the future. I got some criticism on the piece, which is like, this is how you shouldn’t visit China. And it’s like, well, what are you going to do if you’re going on an official visit to a bunch of companies? How do you expect to get in the door without being nice? You have to start somewhere, and I think it’s important to be respectful. Grace Shao (05:31) I think the piece was, frankly — I don’t think the criticism was fair, to be honest, because I think you were really transparent with the fact that you’re not a China person, right? It’s not like you’re going there and exoticizing everything. And if anything, a lot of people, even with China backgrounds, like to use certain dragons and tigers to describe things. I feel like you actually were really humble going and being like, I’m just a technical dude meeting with these labs, talking about their technical research, right? And then because you were physically there, you had observations of the culture and the people. So yeah, I actually thought your piece was quite good. And yeah, sorry. Nathan Lambert (06:05) I agree. I was willing to let that sail past, but I think it’s important for people who listen to realize how actively these companies are trying to court Western audiences, which is why we could get in the door. I mean, we had some prominent people on this trip, but that’s why we got all of them in

    1 tim 3 min
  6. AI x education, a contentious but unavoidable future. Designing tech for children with Dex's Reni Cao

    18 maj

    AI x education, a contentious but unavoidable future. Designing tech for children with Dex's Reni Cao

    I spoke with Reni Cao, the CEO and co-founder of Dex. Dex Camera is a language-learning camera for kids. Reni is a dad, a former product lead at YouTube, and on a mission to build technology that does good for kids and gives digital autonomy back to parents. We dive into his personal story from his high school days that drives his passion for AI, and why he believes the current education system is a “cookie-cutter” that fails curious kids. We get really into the nitty-gritty of what makes “good” tech versus “bad” tech for kids and why the category of ‘children-first tech’ is very overlooked. Reni explains why most children’s apps are built on an “attention economy” model that forces them to compete with addictive content, and why his team needed to build physical hardware to break that cycle. We tackle the hard questions, including the pushback from parents who believe in “no tech” childhoods. And he shared his most non-consensus view: that the era of standardized, industrial education is over. He believes we are entering a golden age of “scaled homeschooling” where AI meets kids where they are. Whether you’re a tech investor or an anxious parent, this conversation about nature versus nurture, “nei juan” (involution), and raising resilient humans in an AI world is a must-listen. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, founders, and product managers. For more information on the podcast series, see here. To find the previous episodes of Differentiated Understanding, see here. Chapters 00:00 Reni’s Journey to Dex Camera 03:48 Designing for Children: Principles and Insights 08:05 Technology’s Impact on Child Development 12:09 Bridging the Gap: Business and Product Design 15:36 The Role of Parents in Tech Development 25:20 Leveraging AI and Language Models 29:48 Value-Driven Pricing Strategy 32:05 Defining the Product Category 34:33 Subscription Models and Content Delivery 37:58 AI and Parenting: Balancing Technology and Safety 43:29 Unexpected Use Cases and Impact 47:29 Personalized Education and Parenting Philosophy AI-generated Transcript Grace Shao (00:00) Reni let’s start with your personal story. Who are you and who are your team members? Because when I met you in SF, I was so enamored by the product and I thought your story was so interesting. So please share that. Reni Cao (00:11) Hi everyone, my name is Renny, CEO and co-founder of Dex. We’re a technology company in San Francisco, almost all parent company, which is pretty special in a startup setting. We’re a bunch of parents that having trouble with the same kind of like a reality where like our education system is a sort of like cookie cutter and our entertainment is also cookie cutter for children. So we’re like, can we harness technology, especially the latest development of the AI, in different way for families that really gives children a chance to become the best version of themselves and ⁓ give the digital autonomy back to parents themselves rather than accepting the fact that they have to struggle between technology versus no technology. So yeah, we’re the parents, of like a bunch of missionaries in this journey together to explore how can we make the best use. of the AI and our first product is called Dexta Language Learning Camera where kids can take pictures and turn the whole world into language immersions. And it’s a product targeting young children three to eight. And we’ve sold 10,000 pieces so far and ⁓ ratings has been high and we’re pretty excited about this. But yeah, this is pretty much about us. Grace Shao (01:24) But Reni, tell us a bit about what you did before Dex actually. What kind of led you to this path? I know becoming a parent really did inspire you. You have a young daughter, I think similar age to mine, around three years old. But before that, what really led you to this path? Were you always passionate about children’s tech or education? Reni Cao (01:41) I actually have been a product management guy for the last decade in Silicon Valley, some big companies like YouTube and LinkedIn, some smaller s***, ZFS, Wish. But I have been a builder since the beginning. I would actually say that my passion for decks actually originated much earlier than I started my career. It actually started right when I was at school, but happy to say more if you’re interested. Grace Shao (02:07) Yeah, no, do tell us a personal story there. Reni Cao (02:09) So I was always this random kid with tons of questions back in high school. And very unfortunately, I think the education system, especially in East Asian countries, is not designed for meet kids where they are. So every time when I come up with a random question, my teachers are usually a little bit impatient and will be like, can you just go back and finish your quiz, et cetera, et cetera. So the moment I saw when GPT-4 comes out, I was thrilled and I posted a long like blurb on LinkedIn. Basically saying like, you know, if I had, have this as a kid, I would have grown into a more complete human. So this kind of like, I feel like this like generative AI’s capability to meet kids where they are, especially meets your needs for curiosity. It’s game changing. So. I feel like I’m building this product first and foremost for a younger me that could have benefited so much from this. That’s pretty much the story about me. yeah, I know we see it and of course our parents right now we see there is a tectonic shift in terms of the skill landscape and what the future of workforce is going to be and even the existential challenge of what does human mean in a future society. So we do want to build something that’s centered around children, centered around the family to help them find what they love and build agencies around it at the end of the day. So yeah, that’s the two main driving force of me coming to Dex. But I would be honest about it. It’s like very random. When I want to start a company, a lot of my colleagues are very surprised, being like, oh my god, Renny, you’re getting into this field. But yeah, I guess I finally find the work of my life. Grace Shao (03:48) I love it. think you need to understand the passion and the personal reason behind the businesses to really understand why the design was frankly so intuitive and why you’re so passionate about building this and leaving such a comfy, know, like cushy corporate role. I think that’s the one thing that stuck out to me. The product itself is actually so natural to how children behave to your point, like my three year old. from morning to night, know, morning she wakes up, it’s like, mommy, what’s this? What’s this? What’s this? What’s this? How do say this? Why do you know that? Sometimes she gets angry at me. If I don’t know something, she’d be like, but you’re an adult, you should know everything. But the reality, especially with languages, it’s really difficult. So for example, yesterday she was coming back from her Mandarin class and she said, liu shu, she was pointing at random tree. And I was like, that’s not liu shu. All I know is not liu shu, but I actually don’t know what liu shu is in English because I think it’s only really common in mainland. I’ve never seen that kind of tree. Well, I guess it’s a willow tree. You don’t see it very commonly elsewhere. And then she kept on pointing at trees, but in Hong Kong, you clearly don’t have liu shu because Hong Kong is like tropical. And then she got really, really mad at me. And that moment I was like, wow, if we had a Dex camera, that would have been perfect. But I was literally trying to take a picture of it while we’re moving car and try to upload it to GBTB, like what tree is this? What’s the name of it? So anyway, I think it’s really great product design. And I want to kind of get into that a little bit. When you were designing it, what was the thinking? Like, what does it mean to be children first? Reni Cao (05:10) I think there are three layers of children first as a principle. The first layer we already touched upon that. So young children, their hand anxiety is very different from adults. they tend to use one hand to operate a device and another hand they want to use for sensory explorations, like they want to touch. Sometimes they want to just move things around. So this requires a different form factor that one handed use, very tactile, very intuitive for young children such that they can explore a world while harnessing the power of AI in this case. So this is kind of like the user, the special things about the user. And it’s a different design. think that’s layer number one. I think the layer number two is also that the device itself is a metaphor for the market as well. And in the market, we want to build something that’s drastically from the so-called adult-centric smart devices, namely the phones and tablets, to send the market a message that there could be a different option. There could be a good technology. There could be a family-centric technology. And we’ve picked this form factor utilizing the metaphor of magnifying glass. It is something you use to see some hidden wonders, otherwise you cannot see. I do think that’s the ⁓ second layer of the things, which is like metaphor and category creation. And at the end of the day, I do think we intentionally make the device kind of worth finding this fine balance between engagement and learning or kind of like a healthy aspect of the technology, meaning like we add a assistive screen, but we make it really kind of like limited and not the center of the whole kind of like a user journey. And we want to kind of like find a new way to put all the components in our consumer electronic

    1 tim 1 min
  7. There's more to Korea than just chips. TheVentures CIO on the country's AI stack

    11 maj

    There's more to Korea than just chips. TheVentures CIO on the country's AI stack

    In this episode, I spoke to a leading South Korea VC, TheVentures’ CIO Ethan Cho. He argues that South Korea’s low fertility rate and aging population put pressure on Korea to be one of the world’s fastest adopters of AI technology, similar to its rapid embrace of high-speed internet in the early 2000s. While not a leader in foundational LLMs like the US or China, Korea’s strength lies in application and adaptation, particularly in B2C areas like personalized agents and commerce, where cultural familiarity with chatbots and digital transactions lowers resistance. The Korean startup capital funding landscape is shaped by three forces: Chaebols (Samsung, SK, Hyundai), the government, and VC firms. CVCs from Chaebols tend to reinforce existing semiconductor and hardware value chains rather than explore tangential innovation. To counter this, the Korean government has become a dominant LP through initiatives like “Everybody’s Entrepreneurship,” injecting capital to encourage novice founders. On sovereign AI, he believes the government’s push is less about global dominance and more about securing sensitive areas like finance and defense, though he warns that domestically-built software has historically struggled to scale beyond Korea. Ethan is shifting focus from purely domestic champions to founders with global ambition but local execution, often Koreans educated abroad who return dissatisfied with traditional jobs. He wants to back ventures that change the world, not just build another food delivery app. He also recognizes key opportunity areas, including defense tech, K-beauty, fashion, and mental health, as society adopts AI at scale. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, founders, and product managers. For more information on the podcast series, see here. To find the previous episodes of Differentiated Understanding, see here. Chapters 00:00 Introduction to Ethan Cho and His Journey 02:47 Korea’s Role in the Global AI Supply Chain 05:24 Cultural Attitudes Towards AI in South Korea 11:06 Government Initiatives and Sovereign AI 16:37 The Future of Commerce and AI Integration 28:03 Consumer Behavior and AI Adoption 28:43 Enterprise AI Solutions in Banking and Manufacturing 33:39 Investing in Founders: The New Generation of Entrepreneurs 39:39 Korea’s Future Exports: AI and Beyond 41:41 K-Beauty and K-Fashion: Cultural Exports 45:15 The Future of Mental Health in the AI Era 49:53 The Limitations of AI and Human Experience AI- generated Transcript Grace Shao (00:00) As mentioned, our guest today is Ethan Cho. He has been active in the Korean VC space for over a decade with experience in the venture investing arms at Qualcomm, Google, Samsung and more. Now as a partner at the ventures, he leads a team focused on finding and nurturing the next generation of AI native startups. Ethan, thank you so much for joining us. So good to have you. Ethan Cho (00:18) Thank you, Grace. I’m very excited to be on the show and I would love to discuss with you more in detail. Grace Shao (00:24) Yeah, to start with, tell us about yourself. Tell us about venture investing in South Korea and the firm’s background. Ethan Cho (00:31) Sure. So I was born in Korea. I kind of moved internationally quite a bit. I moved to England when I was kid, when I was four years old. That was where I first learned my English, lived in England about four years, came back to Korea, then moved to Hungary, lived in Budapest for a year, came back to Korea again, spent the next 20 years in Korea, moved to the States, lived in New York for ⁓ my business school years and worked there for another year, came back to Korea after then. So I’ve been in and out of the country quite a bit. I loved startup investment very early in my career, so I wanted to move towards startup investment. I actually started out as a hedge fund analyst right after business school, but I quickly found out that I’m more interested in finding good companies and good stocks. So then I moved towards the private side, started with Samsung, and moved to Qualcomm, et cetera, et cetera. What fascinates me about Korean startups and startups in general is that everybody’s trying to change the world. I’m just such an honor to be a part of that and talking to entrepreneurs on a daily basis really excites me. Grace Shao (01:34) Awesome, I think it’s really interesting because you’ll definitely bring a very international perspective and not only just the Korean perspective and also kind of understand, you know, where a lot of our listeners are coming from as well. You have, you know, you have exposure to UK exposure to Europe, exposure to US. I think I want to ask you quickly, because you’ve actually worked in the public sector as in public investing, it’s kind of interesting because right now, obviously, the frenzy and the, you know, the global interest right now. Ethan Cho (01:57) Mm. Grace Shao (01:59) is in a lot of the big semi providers in South Korea, you know, focused on infrastructure layer that are public listed. At a high level, how should we think about the Korea’s role in the global AI supply chain? And then of course, we’ll shift gears into talking about the startup scene that you’re passionate about. Ethan Cho (02:02) Yep. I think that’s a great question. think one of the very obvious factors of AI is memory because you can only use AI based on what you or the agent knows about you or any company. So because of that, the demand for memory is exponentially increasing. I think that’s definitely a blessing for the career semi-players and also the current industry as a whole. But at the same time, think nature has always found a way to become more efficient. So the capacity or the demand constraint will not be existing forever. There’s going to be significant improvements such as Moore’s Law. There’s always an innovative solution that comes out every other year. So I think there’s definitely going to be a lot of exciting opportunities down the road, but it always evolves. So it’s going to be very different next year. It’s not going to be HBMs anymore. I think it’s going to be something else going down the road. We’ll have to see, but I think the trend is here, but the trend itself will also keep evolving down the road. Grace Shao (03:15) Awesome. So, you know, if we have a really candid assessment of what’s happening in Korea right now, what’s genuinely really strong do you think? Like the chips are strong. ⁓ What do you think that weaker maybe compared to, you know, China and the US, you know, from outsider lens, is it really the LLM labs kind of or is it diffusion? What’s happening? Ethan Cho (03:24) Hmm. Yeah, I mean, it’s a complex situation. I think one thing that a lot of people quote and one kind of fate that we cannot deny is that we have a very low fertility rate. So the birth rate is decreasing very fast. We have a very rapidly aging population. A lot of people think of this just as a curse. I think there is an aspect to it that it’s a blessing in disguise because we are one of the countries that most desperately needs AI and robotics. And because of that, I think we will be one of the more adapting or welcoming countries for AI and robotics. If we go back to the early 2000s, we were one of the countries that adapted most rapidly to high speed internet as well as mobile technology. because we had to, we talk a lot on the phone, obviously. So because of that kind of demographic instinct, we were one of the much faster adapters to that technology. I think that’s gonna repeat in AI and robotics. As you mentioned, I think that AI and robotics is definitely not, we’re not the strongest when it comes to AI robotics in the world. But in terms of adapting and using it for actual use cases, we may be one of the very strong countries. So I think there’s a lot of challenges and opportunities ahead of us. Grace Shao (04:50) That’s really interesting. think you hit something that like, you know, people are starting to pick up in the West, which is like in East Asia in general, the embrace of technology is a lot more optimistic. Some come from very realistic reasons. Like you mentioned, whether it’s in China or Japan or Korea, there is a potential labor shortage that’s coming to the next generation, right? But not only so, I think just in terms of culture and social sentiment also feels that way. So if you have to give like a high level kind of assessment on You know, just the cultural attitude and political attitude towards AI, what does it feel like on the ground in South Korea? Ethan Cho (05:24) I think AI itself, I think people think of AI in different forms, obviously. I think as far as I know, China thinks of AI closer to robotics. The US thinks of it as, I don’t know, maybe a chatbot or something that they use for the industrial usage. In Korea, as far as I’ve experienced, I think it’s more about becoming a personalized kind of agent, not agent. per se in terms of doing purchasing or actual daily tasks. We always had kind of chat bots, especially for instance, for our financial system or the banking system, we’ve always used CS bots very frequently. So we’re very used to it. So I guess there’s less resistance when it comes to adopting or adapting bots or AI featured functionality, especially in the B2C area. So although... When we say AI just by the name, it could sound creepy. I think it’s already very well embedded in the Korean startup ecosystem and the overall society as well. Grace Shao (06:27) That’s interesting. So you did kind of touch on one thing, you know, the Chinese view this way, the Americans view that way, you know, definitely there’s a bit of a dif

    54 min
  8. Assembled co-founder John Wang on building a AI native support system for enterprises

    4 maj

    Assembled co-founder John Wang on building a AI native support system for enterprises

    In this episode, I sit down with John Wang, the co-founder of Assembled, to explore how AI is revolutionizing customer support. Having transitioned from a Stripe engineer to an AI startup founder, John shares his unique insights into the evolution of support tools. We delve into how these tools have shifted from being mere cost centers to becoming strategic assets that enhance customer experiences. John and I discuss the impact of AI on support volumes and staffing, highlighting how integration is reshaping the landscape. He emphasizes the importance of talent density and assembling high-caliber teams to drive success in the tech industry. Through his experiences, John provides practical insights into AI's current capabilities and limitations in support operations. We also explore the strategic considerations for future AI support ecosystems. John shares his thoughts on the role of support in driving revenue and customer satisfaction, and how AI can orchestrate with human support agents to create a seamless experience. His perspective on building high-performing support organizations offers valuable lessons for anyone looking to innovate in this space. Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. Season two will host a series of guests from early-stage investing, as well as builders, founders, and product managers. For more information on the podcast series, see here. To find the previous episodes of Differentiated Understanding, see here. Chapters 00:00 The Journey from Stripe to Assembled 02:25 Understanding the Importance of Customer Support 05:29 Lessons Learned from Stripe 10:25 AI in Customer Support: Current State and Future 16:04 The Economic Impact of Support Operations 18:25 The Role of AI in Transforming Support Jobs 24:30 The Future of Support Organizations 26:58 Guardrails Against Fraud in AI Support 32:42 Navigating the AI Ecosystem 38:00 The Value of Long-Term Commitment in Careers AI-generated transcript Grace Shao (00:00) Hey, John, thank you so much for joining us. I just recorded your bio already. It’s extremely impressive. And you’ve done quite a, you’ve had quite a few different roles now as the co-founder of assembled, right? To start, can you just tell us about your story? Like what inspired you to leave Stripe, you know, go into, you know, right now what you guys are doing, which is a software for people who run customer service support operations. You know, now you guys are pivoting into AI as well, or at least leaning into AI. Tell us about all of this. John Wang (00:28) Yeah, great question. When we, well, when my co-founders and I started, we were all at Stripe. We worked on a bunch of different things at Stripe. And one of the last things that my two other co-founders worked on was a support tool, an internal support tool. And I remember pretty clearly that they were making a bunch of headway. It was really, really cool. And... They had gone to this really, really high up person and product. And this person was basically like, why are you guys wasting your time on this? Like you guys are kind of like, you’ve been at Stripe for so long, you know all these things and you’re doing support. Like I’ve got this really cool Bitcoin project that I would love for you to work on instead. And I remember my co-founder coming to me and being like, hey, like pretty bummed this is what happened. And then I was like, wait, you just saved Stripe, you know, quite a few million dollars, increased customer satisfaction by 40%. And still they don’t understand the value of this. And that’s when we were like, hey, ⁓ there’s something here where there’s a market opportunity. So that’s what got us really, really excited about support. We were doing it at Stripe. We knew it was an undervalued place. We didn’t see any very good tools out there to do support well. And so we decided to go build something really, really great in the support space and just like make transform and elevate support is our mission. Yeah. Grace Shao (01:50) Do you think it was just that stripe was too rich? They were just, and they just didn’t care about saving a couple million dollars? Or do you think it was actually a blind spot for people? John Wang (01:59) I think Stripe was definitely very rich at the time. think it was also a blind, it was a combination, right? Because most people, you think of support, you think of it as just a cost center. And I think recently that started to change in the sense that like, hey, this is actually a really important part of your business. But for a lot of companies, like if you look at FinTech, if you look at like a lot of health tech companies, their entire product is their relationship with their customers. And so support’s actually really, really important for that. And I think a lot of people underappreciated that for quite a while. And now I think people are starting to understand again, hey, if you piss off your customers every time they come and talk to you, that’s not going to be a very good thing. You better be a monopoly. Otherwise, you know, they might not be coming back. Grace Shao (02:46) Yeah, definitely. I think I want to kind of lean into that later in our conversation as well. It’s like people are trying to replace support and customer service AI first. But if anything, it’s not the best experience when you’re frustrated with a product and you keep on getting a robot, right? But I want to kind of talk more about your experience at Stripe. You were there quite early. What do you think it taught you, you know, as a very early employee at such a successful startup now? if even considered still startup and then like what were things that you think you learned there lessons even if soft skills that you kind of took away to to your current role like as a founder. John Wang (03:21) Yeah, it’s a great question. You know, it’s really funny actually. I just met up with someone where, so when I was starting out of college, I had applied for all these jobs. I was able to get a lot of them, except for this one company that I really, really wanted to go to. It was called Meteor Development Group. They built open source software. In college, I had built open source software at Ruby on Rails. I was really big in that community. was like, wow, it’d be awesome to go and make this something I do day to day. And I didn’t get the job. I was really bummed about it. And then I was like, I’ll just fall back on my second here, which is Stripe. And Stripe was the obvious second choice because just the people were really, good. And now like 10 years later, I like think about that and I’m like, the business model is really important. because Meteor was not a good business. Like open source frameworks is not a good business, but Stripe, really boring. Honestly, it’s just like payments. You process payments, you go talk to Visa. You literally have to like, we had a server in the server room that would send like a specific file with specific tabs and spaces in order to get it out to Visa. Really boring. Really, really core infrastructure too. And so like the big overarching thing that I learned was like one, business model is unbelievably important because if you can just make a good product when the kind of like market is there and when there’s a really big need, then this can scale like unbelievably fast. Two was the people. I remember talking actually to a few people, Greg Brockman was maybe the second or third person I talked to. who’s now the co-founder of OpenAI. And I remember just talking to him and being like, wow, this person is so, so smart. This is awesome. And I would talk to kind of like, I would go to the lunchroom and be talking to people at Stripe. that was just, people were talking about all sorts of things. And I think like talent density was a really, really big part of like what made Stripe successful. And It wasn’t any one thing over time. was one, Stripe was in a great market. And then two, it iterated really, really fast on a lot of little things over and over and over again. So I thought that was a really good place to learn a lot about like what makes a company great. Grace Shao (05:49) Yeah, I think it’s interesting you’re talking about talent density and a lot of the AI labs I speak to actually also talk about that. But I’m curious, what does it mean when you have really strong talent? Is it like that they are technologically superior, like they can code better? Or does it mean actually that they can think outside the box, they’re more creative, they can pivot faster? Like what does it really mean to have really high caliber talent on your team? John Wang (06:11) I think it depends on what company or like what you’re trying to solve, right? Like talent density for Los Alamos national, like Los Alamos, like building the atomic bomb is like very different than talent density for like Bell Labs, which is very different than talent density at early Stripe, which is very different also than talent density at OpenAI Research. Like I think for Stripe in particular, the type of talent density that was there was really high curiosity. Grace Shao (06:31) Right. John Wang (06:38) really high product thinking, really technical people, and people that could dive deep on certain problems and weren’t afraid to go talk to a bunch of customers. You saw so many conversations about like, how do we make this particular API parameter better for everyone? And like hours and hours and hours of like making sure it was a really, really good product. And people who weren’t afraid to like, you know, take a week of work and just like dump it away because it wasn’t quite there. So it was like, This combination of like, they worked really hard, they’re really smart, and they care a lot about the end result and have

    43 min
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Every episode, I bring in a guest with a unique point of view on a critical matter, phenomenon, or business trend—someone who can help us see things differently. aiproem.substack.com

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