E44: How Benchmark Invests in AI with Eric Vishria and Quilter Founder Sergiy Nesterenko

In today's episode, we discuss Benchmark's investment philosophy in the AI era with general partner Eric Vishria, and Sergiy Nesterenko, the Founder and CEO of Quilter. Sitting in for Erik Torenberg as host is AI Scout and Cognitive Revolution host Nathan Labenz. They cover the questions that Benchmark asks to determine whether a new company is solving an enduring or temporary problem, and the reasons why Benchmark hasn't invested in a foundational model to date. They also discuss the innovation behind Quilter's groundbreaking use of reinforcement learning to automate integrated circuit board designs. They delve into the importance of thinking beyond 'co-pilots' to fully automated AI solutions, and explore the balance of research and engineering in the AI space.🔥 Apply to join over 400 founders and Execs in the Turpentine Network: https://hmplogxqz0y.typeform.com/to/JCkphVqjRECOMMENDED PODCAST:Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more.Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOHApple: https://podcasts.apple.com/id1753399812https://podcasts.apple.com/id1753399812-RECOMMENDED PODCAST: ECON 102 W/ NOAH SMITHKeeping econ entertaining - Noahpinion author Noah Smith and Erik Torenberg break down business news and politics every week.Apple: https://podcasts.apple.com/podcast/id1696419056Spotify: https://open.spotify.com/show/6q7Gn5lP8TTtBPuV1NJSGs--This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at [email protected]:🦾Level up your ineffective website chatbot with CommandBar. CommandBar builds a new type of web assistant which delivers highly personalized responses, real time co-browsing, and can perform actions on behalf of the users. Learn how Hashicorp, Gusto, Freshworks and more use CommandBar at https://commandbar.com/moz💥 Access global engineering without the headache and at a fraction of the cost: head to choosesquad.com and mention “Turpentine” to skip the waitlist.--LINKS:Automating Circuit Board Design Using Reinforcement Learning w Sergiy Nesterenko, Founder of Quilter:https://www.youtube.com/watch?v=XXH-KtwcevQ&ab_channel=AutopilotwithWillSummerlin)Chris Dixon’s The Idea Maze:https://cdixon.org/2013/08/04/the-idea-maze--Follow on X@eriktorenberg (Erik)@ericvishria (Eric)@sergiynest(Sergiy)@turpentinemedia (Turpentine)--TIMESTAMPS:(00:00) Intro(01:13) Eric's Investment Thesis at Benchmark(03:35) The "AI and Done" Approach(07:15) Diverging from Large Language Models(09:27) The "Idea Maze" Framework(12:40) Disruptive Innovation(16:00) Exploring the Data Landscape(21:12) Extrapolation vs. Interpolation(29:45) Compute Allocation(31:53) Different Physics Simulation Techniques(40:08) Timeline and Bottlenecks(41:43) Unsolvable Problems and Gradual Progress(42:03) The Future of Circuit Board Design(50:22) Benchmark Portfolio(53:34) The Gap Between Research and Engineering(53:52) Call for Startups