How Prompt Engineering Inventor Built $1.5B in 3 Years | You.com, Richard Socher
We met Richard Socher, the founder of You.com. Richard spent 17 years proving that AI could understand human language back when the world dismissed it as a "crazy idea." After serving as the Chi
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Intro
- 00:00had the crazy idea in 2010 to use neural
- 00:02networks for natural language processing
- 00:04which was a very controversial idea at
- 00:06the time. A lot of people in the field
- 00:07said, "Oh, neural networks, they never
- 00:09work. They won't ever work." Most of my
- 00:11papers got rejected cuz people hated
- 00:13neural nets for NLP. MIT and especially
- 00:16Berkeley here in the Bay Area, they
- 00:17hated neural networks for natural
- 00:19language processing too. We had invented
- 00:21prompt engineering and so we thought
- 00:22people should get access to this. We
- 00:24felt like well someone's got to do it.
- 00:26In 2020 when we started.com a lot of
- 00:28people said search [music] is dead.
- 00:29nothing you can do. But I don't really
- 00:31generally care about what's popular. I
- 00:33just care about what's meaningful. When
- 00:34[music] you once you really love an idea
- 00:36and you feel like that idea makes sense
- 00:38from first principles, you have to have
- 00:40a little bit of that belief inside of
- 00:42you that [music] you can make it prevail
- 00:44through a lot of rejection and still
- 00:45keep on going. Hi everyone, I'm Richard
- 00:48Ser. I'm the founder and CEO of.com and
- 00:51the founder and partner at AI Accentur.
- 00:54U.com is AI search infrastructure. In
- 00:57order to make an LM not hallucinate, you
- 01:00actually need to have a good search
- 01:02infrastructure to inform that LM. People
- 01:05searched on Google AI and LMS and agents
- 01:08search on you.com. Companies like
- 01:10OpenAI, Amazon, Alibaba, Telegraph,
- 01:14Windsurf, Harvey use our API
- 01:18infrastructure to make their LMS
- 01:20upto-date, accurate, and have citations.
- 01:22So you can actually verify that the
- 01:25facts are correct. It's amazing to
- 01:26become a unicorn. And in many ways, it
- 01:29also just feels like okay, it's what's
- 01:31next? What's the next step?
How the Inventor of Prompt Engineering Built a $1.5B Unicorn
- 01:43I originally from Germany. I thought a
- 01:45lot about sort of the meaning of life
- 01:47when I was younger. In high school
- 01:49already, I love natural languages. You
- 01:52know, I studied English. I'm originally
- 01:53from Germany and [music] French and
- 01:55Chinese and but I also love math. And so
- 01:58math and languages don't intersect
- 02:01often, right? It's very different fields
- 02:02of study, but they do intersect [music]
- 02:04in a computer where you try to use math
- 02:07to understand language. And so I ended
- 02:10up deciding study linguistic computer
- 02:12science in 2003. [music] It was
- 02:14definitely not famous or or popular in
- 02:17Germany. Linguistic computer science as
- 02:19it was called then was very much a niche
- 02:22orchid type of subject that very few
- 02:24people were studying. Still remember my
- 02:26my dad thinkingh what what will become
- 02:28of my son cuz this linguistic computer
- 02:30science thing doesn't sound like
- 02:31anything useful for ever like uh for a
- 02:34long time and but I don't really
- 02:35generally care about what's popular. I
- 02:37just care about what's meaningful. And
Why Linguistics is the Operating System of Intelligence
- 02:39then it felt to me like if we could
- 02:41really get that to work uh on the
- 02:43research side, it would have an amazing
- 02:45impact. Ultimately, language is the most
- 02:48interesting manifestation of human
- 02:49intelligence. Several civilizations were
- 02:52able [music] to create written language
- 02:53to not all of them, right? And the ones
- 02:55that didn't were falling behind and
- 02:57we're saying similar things.
- 02:58Civilizations that don't use AI now are
- 03:00falling behind. And so ultimately I
- 03:02think it's very meaningful to help
- 03:04[music] us understand language because
- 03:06it helps us understand who we are as
- 03:08humans. And then it uh also uh [music]
- 03:10actually helps in on the journey to
- 03:13understanding intelligence. It helps to
- 03:15create it because anything we can create
- 03:17we can engineer we understand a lot
- 03:19better afterward.
- 03:20Your brain and mine are jam-packed full
- 03:22of neurons that are tightly connected to
- 03:24and they talk to each other. in a
- 03:26computer. We can therefore build what's
- 03:28called an artificial neuronet network or
- 03:30the the other technical term is a sponse
- 03:32learning algorithm. But we can build a
- 03:34neuronet network that simulates all of
- 03:36these neurons being connected to and
- 03:38talking to each other. And then I was
- 03:40very fortunate uh at Stanford to hear
- 03:43Andrew talk about deep learning and
- 03:45neural nets for computer vision. It made
- 03:48sense to me from first principles that
- 03:50neural networks would be right because a
- 03:52lot of the research actually was about
- 03:54feature engineering that were people
- 03:56were doing at the time like in sentiment
- 03:57analysis you might say oh these are
- 03:59positive words and this is how negation
- 04:01works and here's like all these like
- 04:03linguists would come up with features
- 04:04and that clearly wouldn't scale to more
- 04:07complex things like translation [music]
- 04:09and I wanted to unify also uh the field
- 04:12and that eventually led us to prompt
- 04:13engineering and inventing that but then
The Moment We Had to Scale Up
- 04:15after [music] the PhD I was like now we
- 04:17have the main ingredients. We know how
- 04:18to make it work. We need large neural
- 04:20networks. We need a lot of data. And I
- 04:22showed that in all my research papers.
- 04:24And now we [music] need to actually
- 04:25scale it up. We need to like take those
- 04:27ideas and apply them into real
- 04:28applications for real people. And I
- 04:31think a lot of the papers that came out
- 04:32in the last couple of years, they made
- 04:34everything a little bit better. But
- 04:35those main ideas of endtoend trainable
- 04:38neural networks on large data sets, that
- 04:41is the main idea. That's [music]
- 04:42those those ingredients are the main
- 04:44ideas that push the field forward. And I
- 04:47felt like it made more [music] sense now
- 04:48to majorly scale that. And then in
- 04:51academia, you just don't have the
- 04:52resources to really scale. And then
- 04:54[music] while I was excited about
- 04:55scaling it, I should have scaled it even
- 04:57more. You know, I thought, oh, I raised
- 04:58like 1020 million, but I should have
- 05:01raised $200 million or a billion [music]
- 05:02dollars to really scale it more. So it
- 05:05was clear to me that to really scale it,
- 05:07you had to do it in industry. And that
- 05:08the technology was ready now to move out
- 05:11of academic research into the real
- 05:13world. And then when you maximize impact
- 05:15and you realize well the main ideas have
- 05:17we've been researched now it's time to
- 05:18really apply them in the real world and
- 05:20so startup uh felt like it made sense.
Solving for Impact When Everyone Said No
- 05:29So I graduated in 2014 then started
- 05:31[music] Metammind. Metammind uh was
- 05:33basically an AI platform that made it
- 05:35very easy to train neural networks. we
- 05:37had [music] uh started selling it to but
- 05:39for selling you had to be very very
- 05:41focused on one small niche but we had
- 05:43built this very powerful platform and so
- 05:45felt like in the hands of a no pun
- 05:47intended sales [music] force that is
- 05:48very large we could actually have much
- 05:50much more impact and the impact within
- 05:52Salesforce was much much larger for the
- 05:54way we had built that company and then I
- 05:57thought for a long time like I'll just
- 05:58be very happy cuz [music] uh Salesforce
- 06:00and do amazing research and improve a
- 06:02lot of the products we did not [music]
- 06:04just prompt engineering but we also
- 06:06built the are just language model for
- 06:07proteins for instance and biology. And
- 06:09then we had invented prompt engineering.
- 06:11And so [music] we trained this one
- 06:13neural network that can give you all
- 06:15different kinds of answers. And so we
- 06:17thought clearly people should get access
- 06:19to [music] this. and we published a
- 06:21paper and you know the paper got cited
- 06:22by other people at OpenAI and Alec
- 06:24Ratford and Ilia and they said oh this
- 06:26is an interesting idea and they extended
- 06:28it and and so on but we felt like well
- 06:30they're also a research lab so we needed
- 06:32to bring this to real people and Google
- 06:34was just not doing anything cuz they're
- 06:35a monopoly they're making money and
- 06:37[music] more and more money just selling
- 06:39advertisement and so they didn't see a
- 06:42need reason and weren't making any
- 06:44interesting [music] sort of
- 06:45modifications to fundamentally how we
- 06:47search and so we felt like well
- 06:49someone's has got to do it. And so we we
The Beginning of You.com: Challenging Google
- 06:51started [music] you.com and we felt like
- 06:53it had to be a new company to have the
- 06:55impact to really become a better way of
- 06:58finding information online. And
- 07:00eventually we became the first to put an
- 07:02LM into a search engine. Imagine you
- 07:05know Google Gemini like people also ask
- 07:07and you get like answers from AI. We did
- 07:11those kinds of things but in 2021. So it
- 07:13is different because it was no no one
- 07:16that didn't exist you know a research
- 07:18background where you the whole idea of
- 07:20being a PhD [music]
- 07:22is to do things that don't exist right
- 07:24to create new ideas and and new models
- 07:26uh and and then you can often think
- 07:29about what kinds of new ideas and models
- 07:31should you build the kinds of [music]
- 07:32things that are useful for people and
- 07:34when you ask like oh how do I write a
- 07:37Fibonacci function or how do I write an
- 07:39HTML page that does something it's just
- 07:41obvious that it's better to just get an
- 07:43answer from an LM than to guess get a
- 07:45list of blue links where you then have
- 07:46to click on 10 open tabs and open them
- 07:49up and then kind of uh find the answer
- 07:52somewhere else. Uh and so that just
- 07:55seems like from first principles it's
- 07:56better to get an answer than lists of
- 07:58links that may have the answer or not.
- 08:00So that's how we invented that one.
Build What People Will Actually Pay For
- 08:08I think the biggest thing for us was the
- 08:10pivot into enterprise. That was a really
- 08:12good focus. A lot of folks now realize
- 08:15they need AI, but only the experts
- 08:18realize that in order to make AI
- 08:20accurate, in order to make an LM not
- 08:22hallucinate, you actually need to
- 08:25[music] have a good search
- 08:26infrastructure to inform that LM. So, we
- 08:29built that infrastructure layer cuz
- 08:31we've been at [music] it since 2022.
- 08:33What we found is more and more companies
- 08:35actually want to use the underlying
- 08:39infrastructure for their own solutions
- 08:41inside [music] their own products. I
- 08:42guess you know there's sort of different
- 08:44pivots in the world right you can say oh
- 08:46we're make cameras and now we sell soft
- 08:49[music] drinks right that's a big pivot
- 08:50but we gave people answers and now we
- 08:53[music] give people answers but how
- 08:55we're selling those answers is different
- 08:57and it's good to follow the revenue here
- 09:00are a bunch of people who want to use
- 09:02the product for free and then here a
- 09:03bunch of people who want to use and get
- 09:05really good answers over their own
- 09:07custom data sets and they're willing to
- 09:09pay you follow the people that pay
- 09:11follow real revenue, not like, okay,
- 09:14hype. Some people say, oh, I want to use
- 09:16this product for free, and you're like,
- 09:17okay, that's great. But if you build
- 09:19something that uh companies are willing
- 09:21to pay for, you know, you've built
- 09:23something of value.
Are You Moving Fast Enough to Lead the AI Era?
- 09:29Some people think we should like slow
- 09:31down. I think we should accelerate more.
- 09:33I think we should accelerate everything
- 09:35a lot more. It's kind of interesting.
- 09:36It's hard to navigate AI because on the
- 09:39one hand there's real impact, right? Our
- 09:41customers have built over 100,000 agents
- 09:44that are automating real tasks for their
- 09:46work, right? And [music] they're telling
- 09:47us and they're paying us for it because
- 09:49it's valuable and it's it works. At the
- 09:51same time, there's a lot of hype and
- 09:54around AI like how quickly and how far
- 09:57are we on super intelligence? Uh are we
- 09:59on the right track for that? How much
- 10:02could uh a browser automate complete
- 10:04tasks without knowing enough about me
- 10:06and things like [music] that? And
- 10:08sometimes the timelines are a little bit
- 10:09off. You know, maybe it will take a
- 10:11little bit longer, but the field moves
- 10:13so quickly, you have to mostly think of
- 10:15like 2 to 4 week cycles to try to move
- 10:19quickly. Okay. And so it's important to
- 10:21think about what are the right
- 10:23applications where you can create
- 10:24ideally virtuous data cycles where you
- 10:27do something manually. You collect data
- 10:30and then you make that decision process
- 10:32a little bit better and then at some
- 10:34point you've made it good enough that
- 10:36you can automate it. And so I for
- 10:38instance didn't [music] want to invest
- 10:39in a bunch of self-driving car companies
- 10:41that said we don't even need a steering
- 10:42wheel. [music] We just need to like have
- 10:45a full self-driving car. And I was like,
- 10:47"Oh man, you can't sell that car until
- 10:49you're perfect." And so that's not
- 10:50generally good. AI [music] is not right
- 10:52away perfect. Humans aren't perfect,
- 10:54right? Humans still make driving
- 10:55mistakes and so on. AI will make some
- 10:57driving mistakes, too. And so it's good
- 10:59to have a steering [music] wheel. And so
- 11:01the companies that were able to
- 11:02eventually get to full self-driving were
- 11:04either the really clever ones like
- 11:06Tesla. You buy the car, you pay for the
- 11:08product, you use the product, you're now
- 11:11creating training data by using the
- 11:13product. And then the eye can use that
- 11:15training data and eventually [music]
- 11:16automate uh the process.
- 11:20When you [music] see small but
- 11:23continuous improvements, that's when you
- 11:25you can, you know, be very motivated
- 11:27too. So that's one of my mottos is
- 11:29better, better, never done, right? You
- 11:31can always improve uh yourself, your
- 11:33company, your processes. Overall, I
- 11:36would summarize it as excitement. I love
- 11:38AI. I love AI in all of its facets from
- 11:40foundational research and thinking about
- 11:42the upper bounds of super intelligence
- 11:45uh all the way down to like how do we
- 11:46make it really work now and get it into
- 11:48the hands of more companies and people
- 11:50to like to make their lives better.