The a16z Show - Replit's CEO on Vibe Coding, Wealth Building, and What Most People Get Wrong About AI

Episode Date: April 15, 2026

Jack Neel speaks with Amjad Masad, CEO at Replit, about how AI is making it easier than ever to build and ship software without a technical background. They discuss Replit's rise from a browser-based ...coding tool to a platform generating $250 million in annual revenue, why Masad turned down a $1 billion acquisition offer, and his case for why AI represents empowerment rather than existential risk. This episode originally aired on The Jack Neel Podcast. Follow Amjad Masad on X: https://twitter.com/amasad  Follow Jack Neel on X: https://twitter.com/jackhneel Listen to Jack Neel: https://www.youtube.com/jackneel   Stay Updated:Find a16z on YouTube: YouTubeFind a16z on XFind a16z on LinkedInListen to the a16z Show on SpotifyListen to the a16z Show on Apple PodcastsFollow our host: https://twitter.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

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Starting point is 00:00:00 The world was built by people that are not much smarter than you. Your job is to find the way of doing things that's most aligned where the world is headed. I think it's the easiest start to get rich in the history of capitalism, but certainly in the history of internet. Growing up in Jordan, today's guest was fascinated by programming, but couldn't afford a computer, which inspired him to make coding accessible for everyone. You can cast almost any problem in life as a coding problem. And I thought, okay, I'm going to hack into school and change my grades.
Starting point is 00:00:30 But when his company hit a billion dollar valuation, he refused every offer to sell, doubling down on his mission to turn the tech industry from a monopoly into a democracy. How much were you offered to sell your company for? When we're very small, not a lot of people, I think six people were offered a billion dollars. And why do you say no?
Starting point is 00:00:47 Because I think I can build a trillion dollar company. In this episode, we'll give his exact blueprint to build a million dollar app in minutes. Explore why the most powerful tech companies tried to kill his vision and question whether AI will enslave us. us or empower everyone to escape the rat race. Why do you think AI isn't going to kill us all?
Starting point is 00:01:07 For most of the internet era, building software required learning to code. That bottleneck shaped who got funded, who got hired, and who got rich. Replit was built to break it. In 2011, Amjad Masad posted a simple idea to Hacker News. When any programming language in your browser, no installation required. That became Replitt. Today, Replitt's AI agent produces a working app in under an hour, and the company's revenue went from $2.5 million to $250 million in just over a year.
Starting point is 00:01:42 When a competitor offered to buy the company for $1 billion at six employees, Masad said no, because he thinks he can build a trillion-dollar one. His argument, not having a coding background, is becoming an advantage. The people who win now are. the ones closest to the problem, not the ones who know the syntax. In this conversation previously aired on the Jack Neal podcast, Jack Neal speaks with Amjad Massad, CEO at Repplet. I'm Job Massad. Welcome to the Jack Neal podcast. Thank you. Amjab. You built a billion-dollar company that makes apps just by talking to AI. If you wanted to build a million-dollar app in five minutes,
Starting point is 00:02:29 How would you do it? It depends on my context. I would look around for problems to solve. So no matter where you are in life, you're in college, you're at work, there are people dealing with problems all around you. One of my very recent startups that came out of Rapplet is a finance guy. And he was on a plane. And next to him was sitting in investment banker, just spending a lot.
Starting point is 00:02:59 of time building spreadsheets and building decks for clients. And he had an idea to automate a big part of that. And he told him, you know, I have an app for you. And he didn't have an app. Can I come push it to you tomorrow? He said, yeah, I mean, if you can solve this problem, if you can make it faster for us to get to our clients, he went home.
Starting point is 00:03:24 And he's been using Replit just personally, just for fun websites, things like that. He spent the night working on the app. Next day went and pitch it, left there with half a million dollars of letter of intent. And did this a few more times with other bankers. And he's just raising at a $35 million valuation right now. So it's more than $1 million.
Starting point is 00:03:49 It's $35 that because he already has a lot of contracts right out of the door. So it's very contextual. We have a educator that's like a more of a story from two years ago because the company is pretty big right now, half a billion dollars worth. But he's a teacher during COVID. I think he just left his school and started playing around with AI, playing around with Rupplet, going in and trying his hand at coding with AI. And because he knows the problem space deeply,
Starting point is 00:04:24 he was able to build a lot of tools for teachers, for grading students, for creating assignments with AI. And education is one of like the hardest markets, but AI has this amazing ability to sell itself. And quickly grew the company to 10 million annual revenue, 20 million annual revenue. And now it's like half a billion dollars worth company. But there are a lot of smaller ones too.
Starting point is 00:04:50 The other day I was on Twitter, saw this guy who created an app quickly with Replit to generate brand kits and brand design material logos, all of that. You enter your product name, you go through a simple flow. It's called any mark.co. And you pay, I think,
Starting point is 00:05:06 40 bucks or something like that, and you get an entire brand kit generated with AI. And so I see this stories every day. And it's typically someone who has some domain knowledge in a certain thing, you know, they're they realize there's a problem
Starting point is 00:05:23 them around them. Maybe, you know, I see all my friends trying to start companies, but brands are really hard to build. So let me automate that. So just like look around you in the world and just see what, what are the problems that people are dealing with that are willing to pay for it. And it's so easy to try things. Because it's so easy and cheap to try things, you can iterate really quickly and arrive at an idea. I think it's the easiest time to get rich online. And in, in, I think it's the easiest time to get rich into history of capitalism but certainly into history of internet.
Starting point is 00:05:59 So if I'm someone with zero dev coding experience, what problem did you guys solve here? And like what are people missing about where AI's at? You can kind of just speak absent to existence at this point. Like how much editing of it do you have to do? Like how much of this really is just, it's done. month over month is improving.
Starting point is 00:06:22 I will say at this point, we have an automated software engineer that is as good as a mid-level software engineer. It would get a job at Facebook or Google. Like, it is really good. Like, you don't have to look at the code at all. Actually, you know, initially, Replit started as like, let's make coding easier.
Starting point is 00:06:41 So they're still coding in the interface. Increasingly, it was just removing the coding features because you don't need to code anymore. Actually, even professional software engineers are not coding anymore. So code is almost fully automated. I mean, it depends on the specialty and the language and there's some nuance to it.
Starting point is 00:06:59 But for the most part, people are not coding anymore. It's become a more higher level thing. So engineers still do some kind of engineering systems, engineering, whatever. But if you're a product builder, all you have to care about is who's the customer is, what the problem you're solving is, what's your core differentiator?
Starting point is 00:07:17 What do you understand about the world that other people don't? and can you put that into an app? So if you go to our app right now, there's a prompt box like Chat Chippee, you type in your idea, like I want to create a brand kit generator. It'll go through a planning process.
Starting point is 00:07:35 I'll tell you, here's what I understand you want to build. You can go back and forth on the plan, and then you tell it to go. It'll work for 10 minutes. It'll get you a minimum viable product. Obviously, that's probably not ready to ship yet. So you're going to iterate on it. You're going to ask it for adjustments.
Starting point is 00:07:54 And there's a preview there and there's the chat box there. And you're going back and forth. So you're telling it something. It's going writing the code, fixing the bugs, testing. It even, we give it a browser. So it can start a browser. It can look at the app itself. It can test it.
Starting point is 00:08:12 It can go to the internet, fetch information. It can integrate other AI models like image generation and things like that. and we go through this process and I think within an hour or two most people have an app that they're ready to put in front of a user it depends on the idea obviously but for a lot of ideas
Starting point is 00:08:32 you can get something done that you can share with a friend or a target user and get feedback from them you don't need any development experience you need grit and you need to be like a fast learner you need to be like I will say If you're like a good gamer, if you can like jump in a game and figure it out really quickly, you're really good at this. But even if you're not a good gamer, you'll figure it out eventually.
Starting point is 00:08:56 But people who are who grew up with technology or like fast learners are now like the best out of this. I will venture to say that not having a coding experience is becoming an advantage because coders get lost in the details. product people, people who are focused on solving a problem on making money, they're going to be focused on marketing, they're going to be focused on user interface, they're going to be focused on all the right things. So at some point, I think this year it's going to flip
Starting point is 00:09:32 and I think not having a quoting background is going to be more advantageous for the entrepreneur. Now when the company grows and you're getting a lot of revenue coming in, At some point you'll hire engineers just to make sure the security and the infrastructure is scaling. And I rapidly continues to help with that as well. But getting to market and generating a revenue, you should be able to do it in a matter of days. So I guess just to zoom in a little bit and give people practical steps, as someone with multi-billion dollar company, if you wanted to build an app
Starting point is 00:10:11 that could get a million downloads in six months, what are the five major steps you need if you could distill it? A unique idea. An idea that is not like an exact copy of something out there because that thing exists.
Starting point is 00:10:31 You need a spin on that idea that's interesting. How do you find ideas? I think that's actually the core skill in the AI8. I think if you, if you want to work on a skill, it's going to be about idea generation. Because the cost of implementation of those ideas is going down rapidly. It's going to go to zero at some point.
Starting point is 00:10:50 So the bottleneck becomes, it's like how fast can you generate ideas. And that skill is about one perception, like just looking around you in the world and seeing what's happening. What are the trends? Are you plugged in on social media? what are people talking about? What is like the most interesting thing that that's happening? And is there a market for that?
Starting point is 00:11:15 Maybe we'll get to that later on, but we're discussing this idea of looks maxing app, right? I mean, it's your idea. And I think it's a great idea because it's something in the ether right now. People are discussing. People are interested in it. Can you build an app that gives you feedback on your local? maxing progress.
Starting point is 00:11:37 That's really great. I saw an app there today that judges, like, gives you, allows you to track your, your hairline progress, allows you to like, you know, gives you interventions to make in terms of like what medications to take and things like that. And unless you take like a scan of your head and like, obviously it's past time for me. But if you're dealing with that early on. it can help you track your progress. So that's very important.
Starting point is 00:12:08 Like I think a lot of young people now, your generation and younger, care a lot more about this than, say, my generation. Right. I'd say that's the big trend of the past few months. So being plugged in is super important. And so, you know, a lot of the vices that my, like older generations think our vices might actually become advantages.
Starting point is 00:12:35 So if you're brain-rotted, you know, terminally aligned person, that might be advantage because you know what's happening in the world. If you're someone who's also just like ADHD, really interested in novelty, want to try a lot of different things, that's actually an advantage because AI really benefits people who can try a lot of things really quickly. Obviously, you need to get things to completion. You need to have some grit at some point. you've got some validation, but trying a lot of ideas is important.
Starting point is 00:13:09 So back to your question, I don't feel like I answered. How do you generate ideas? It's practice. It's a skill. Like generate ideas, put them out there. I really like to use Twitter. I used to do with that a lot where I talk about ideas. I kind of share them and see what the feedback early on.
Starting point is 00:13:29 But now just make the app and see what the feedback is and learn from that. and go from there. And think about ideas all the time. I think it's a muscle. Like just continuously thinking about, okay, what if I built this? What would happen? And so there's all these different ways
Starting point is 00:13:49 to be a better idea generator. I do want to ask you some ideas you have specifically, but maybe we'll get on that later in the interview. So step-by-step process, first one, get a good idea. Get a good idea. Typically tied to a trend. second break that idea down
Starting point is 00:14:11 as much as you can into like say a paragraph with a bunch of bullets like the app the looks maxing app should have a camera with an AI integrated and it should be able to take a photo of my face on my phone
Starting point is 00:14:28 or my laptop and it should kind of draw and I'm just making this up it should draw a line It's like to get specific, like imagine the user interface and get specific about that. You don't have to write more than a paragraph because what's going to happen then, it'll give you the initial implementation and you'll react to that and see if it got it right or wrong.
Starting point is 00:14:50 And then you can like sort of nudge it in different directions. You're looking for your key use case. Yes. Yes. You're looking for the main use case. Don't overcomplicate it. Don't like add a bunch of features. You're just like, what is the core experience?
Starting point is 00:15:04 and how can you get really quickly to value? Users, consumers these days just don't have a lot of attention span. So they're going to give your app like five minutes. And so figure out what's the user journey to get to like a five minute value, a ha moment. And then once you do that, you got your MVP. Go try it on someone. Go try it on a classmate, on a friend.
Starting point is 00:15:32 And before that, though, so let's just assume for the sake of your company is Replit, use Replit or tool like Replit. And then how do you build it? Like how simple is it? Yeah, yeah. You just put in the prompt. You hit start building. It'll start the working environment. It'll work for 10 minutes. It'll show you a preview. If you want to use it on your phone, you can open that preview on the phone. It will give you a QR code. and then test the app if the app is not exactly what you wanted. Most likely it's not.
Starting point is 00:16:08 The first iteration is not. Go type to the AI tell it exactly what it got wrong. It's like you misunderstood this. And don't try to overcome it. You just talk to it like you would talk to a person. Just be as specific as you can. So you misunderstood this.
Starting point is 00:16:25 I meant the AI should work in this or this other way. and give it feedback, go through that iteration cycle a few times, and then go test the app. It's really that simple. You know, you just need to be able to explain ideas well. I think that's super helpful. I don't think the marketing aspect is as important in this particular discussion, but because good products market themselves.
Starting point is 00:16:57 Well, I would say it is important. Like, yeah, good products are very important, especially if you're creating something totally awful. But figuring out how to promote this is going to be important. The easiest places to do it is find communities, like on Reddit and other communities. Like, if you have looks maxing out, there's probably a look to maxing Reddit. It's just, like, posted there. Try to get some early users.
Starting point is 00:17:27 through there, go to the various discords. So that's like the early users. That's how to get like 100 users. At some point you need to scale that. And that's where on Instagram and TikTok comes into play. If you're someone who's good at that,
Starting point is 00:17:44 you have a superpower. If you're someone who's able to like create these short clips and talk about products, you have a superpower. But if you're not, you can still go reach out to influencers and you can cut a deal with them. You can get them, you know, part of the subscription, part of the revenue. You can just pay them. And, and then, and then you go from there. But I would say that's like the first few weeks.
Starting point is 00:18:12 That's really interesting about the communities. That's also a way to find ideas in general is just scour Reddit, scour TikTok hashtags and see like what's a community of people. Let's say example looks maxing or let's say example, like a specific. sports team or like sports gambling, something like that, not promoting gambling, but you would look at the community, look at the problems they have, and then kind of get ideas for what you could build. It's really fascinating. That's exactly right. I mean, the original, when I posted Replit on Hacker News, that's how I got my first users. Hacker News was still kind of as a very popular place for programmers, technical people in general, before Replett became more possible
Starting point is 00:18:56 for non-technical people to use. It was more of a technical product. Do you remember your headline? Yeah. I said, try Python, JavaScript, all these different programming language in your browser without installing anything, right? And so it's like gets to the core value proposition.
Starting point is 00:19:15 At the time, to write any piece of code, you had to download insane amount of software, maybe you try to take a coding class in college. It's really ridiculous. how much you have to deal with in terms of just like writing any kind of code. And so I was like, why shouldn't I be able to code in my browser? Like my browser, you know, I can do my email. I can write my docs there.
Starting point is 00:19:41 Should we able to code there. And I also like scouring of these forums, I'd already seen interest in that. And those like small examples that weren't really working of people trying to build that. So it was like, if I got it working, I can really wow these people. And just like there's a demo effect, right? Like if you're building something novel, like if you can make your looks maxing app like a truly cool experience, then people would just be attracted to that as well. And they're going to promote it and tell their friends about it. So in terms of the headline, yeah, just like what is the core value proposition?
Starting point is 00:20:19 Right. And for me at the time, it's about coding in the browser. That's so fascinating about what you've built. because something I discussed with a lot of young entrepreneurs that built these multi-million dollar AI apps or startups was like this concept of making short-form content before you even build out your MVP or like your minimum viable product and then just seeing if there's interest in it.
Starting point is 00:20:47 But with your company and where AI is at, just build it instantly. And you don't really have to worry about the moat of, oh, this thing does work. Let's build it really fast before someone steals it. It really changed. It really changed even the past few months. That advice is called the Lean Startup Advice, I think, started in like mid-2000s.
Starting point is 00:21:10 There's a book called Lean Startups. And the idea is that it was following from this Toyota way of building cars where they would, you know, cars used to be manufactured in a, like, a heavy industrial way where they kind of know exactly what they're going to build. And, like, they'll, you know, they have all the schematics and they'll, like, create the factory pipelines. And it's very inflexible. They can't react to demand. They can't react to, like, recalls or customer feedback. And so Toyota kind of developed a way of, like, called lean manufacturing. And so it was, like, borrowed from that as, like, how can you de-risk startups and, like, make it more interesting.
Starting point is 00:21:56 But we're at such a different place. Like execution is no longer bottleneck. If you have an idea, just like make the app and then go figure out of the demand because it's a lot easier than just like talking about it. I do want to ask, as far as your mission goes and what you've built today, what's the most important part or moment of your childhood to help us understand? understand who you are and what you're working on. I grew up in Jordan, kind of lower middle class family.
Starting point is 00:22:40 We don't have a lot of money. I was lucky enough to get good education, but also the hard thing about it is because I was in a class with kids that had a lot more money than us. and so I saw their PlayStation's, their Air Jordans, their like all the cool stuff they had that it didn't have and that really fucking sucked. And I was always motivated to like make money. A lot of Silicon Valley entrepreneurs be like,
Starting point is 00:23:06 oh, it's all about connecting the world or whatever. Yes, I care about all of that stuff. But my journey starts with I love programming. I've always loved programming and understand like how computers work. But at the same time, I was also always motivated to make money with computers. And I felt like we're at a moment in time where you can build,
Starting point is 00:23:30 you can build businesses really quickly. Ever since, like, I found the internet. And in the, like, 90s, I wanted to, like, build websites to, like, make money. And there was, like, a bunch of ideas. There's a bunch of examples of people making money really quickly. There was this idea of, like, a million dollar homepage where someone was, like, selling pixels.
Starting point is 00:23:50 and you can like be Microsoft. You can buy like 10 pixels and write Microsoft's logo, whatever, 100 pixels. And so there was this media, even at the time, it was like, okay, you can make money online. And I was going to the internet cafe because we don't have the internet at home. So I would like, you know, scrap whatever money we had,
Starting point is 00:24:10 find in couches or whatever to go pay for like an hour of internet. And I would sit there and like look at different websites, look at what people are doing, different games, different ways I could like build something that could like make money. And then the main idea was sitting right under my nose, which is the internet cafe itself. I was like, well, internet cafes make a lot of money. But they don't use software to manage their business. Like their business is you go in there, you pay, you know, a buck or two, you get an hour on
Starting point is 00:24:43 the computer. And when you're sitting on the computer, they have to keep track of you. They're like every hour, they look at the clock and they're like, okay, your time is up. They tap you on the shoulder. Also, when you're on the computer, you can like install a virus. You can like delete files. It could do whatever. So I was like, okay, what if I built something that secures the system, makes it so that there's like usernames and passwords.
Starting point is 00:25:06 It makes it that so that internet cafes need less employees because once you run out of time, it'll just like boot you out. So I built this internet cafe management system. And because I knew it. And this is the, I keep coming back to this idea of the way to build businesses to build things you know about, either trends you're plugged in or problems around you in the world. So I was 12 or 13 and I spent like, you know, a year or two trying to build this software for a cafe. And then went out and sold it and made quite a bit of money from it. At the time, McDonald's was just opening in Jordan.
Starting point is 00:25:48 and I took my entire class to McDonald's. And no one had McDonald's at this time. How much money did you make from? I made like 500 bucks. Okay. Which was amazing for me, you know. Salas and Jordan are not nowhere near the U.S. And so it's like, you know, so, yeah, I felt rich,
Starting point is 00:26:12 and it felt good to make money. And it felt even better to make money from something that I love doing. And later on, you know, as I found more ways to make money with the computers and programming, I bought an Xbox. I was so happy because I'm able to buy things that, you know, my friends' parents buy for them,
Starting point is 00:26:33 but I'm able to buy it myself, even as a teenager. So it felt empowering to make your own money. But as part of that, like a lot of the painful part, which is like the tools. Like, I was talent programmer, and I was fighting with the tools all the time. And you just, you have an idea, you have the right market, you have the right product idea and skills to build that,
Starting point is 00:27:01 but you're still dealing with a lot of the problems with the tools. So I was always motivated to make better programming and coding tools in order to, in order for me to build easier, more startups, more companies, more products. And for other people as well. And I thought that the internet could be this great wealth equalizer and generator. Like, you know, there's no reason that Silicon Valley capture most of the wealth on the internet because it is the most distributed, decentralized, accessible technology in the world. I think part of the reason is because the tools are hard.
Starting point is 00:27:43 And maybe there's like a intentional part that the tools are. harder than they should be. And so, like, the guiding mission for Replit became, how do you make coding tools so easy that you don't even need to be a coder to use them? And what kind of world does that create in terms of accessibility to wealth generation, wealth creation? I want to hone in on that point.
Starting point is 00:28:09 How much were you offered to sell your company for? At some point, I was offered when we're very small. not a lot of people, I think six people, were offered a billion dollars. And why did you say no? Because I think I can build a trillion dollar company. Do you think Silicon Valley or whoever was offering, do you think the people offering to pay a billion dollars for your company
Starting point is 00:28:39 were just going to kill it? Yeah, it was a competitor. And implicit in any acquisition offer is a threat. If you don't sell, we're going to build something to compete with you. Because they're interested in the product, they're interested in the market. You have to make it better on yourself. That if I'm not going to sell, they're going to go buy some other company or are they going to go build themselves and they're going to compete with me.
Starting point is 00:29:07 And do I first have to self-belief that I can go against the juggernauts, go against the big incumbents and win? ultimately for me it came down to what I would regret more. Would I regret not selling or would I regret more not achieving my and the company's potential? And I thought that would have been a bigger regret. Yes, I would be rich, but I would be yet another rich asshole. There's a lot of them. But building something meaningful that creates meaning not just in your life,
Starting point is 00:29:54 but in other people's lives, whether it's like the team we built, the customers we serve, the entrepreneurs that we're creating, the worldview we're putting out, the mission we're putting out, the influence that comes from that, I thought it would be a loss not to try. Do you think big tech in general is threatened by your mission? Yes. you know, what's the saying?
Starting point is 00:30:20 First, like, they, you know, they laugh at you, then they try to fight you, then they join you or something like that. They're saying it like that. We're at the, like, they're joining us right now. Like they, initially, it was like, oh, rep, let us this toy. You know, kids use it.
Starting point is 00:30:34 Yeah, we have a lot of kids using it. We're proud of it. It's so easy that kids use it. Yeah, and it's like, why is that a negative thing? It's probably a good sign. It's a good sign, yeah. and then and then and then and then when they felt threatened by it they would like try to buy it or like try to compete on the margins or try to like you know compete in the press or PR but not
Starting point is 00:31:02 really on the on the product because they still don't believe in it but they want to counter the narrative that actually programming can be coding or making software can be something anyone can do and finally when we've But we've grown so much, like our revenue, like 100-axed, then they paid attention. And they're like, okay, this is a real thing. And people want it. And now they're building actual competing products. Do you see what you're doing as, I mean, essentially you see as the democratization of building software?
Starting point is 00:31:38 Do you think we'll see something similar with tech that we saw with social media where, or with media? in general where the barrier to entry was so low that instead of, I mean, there's two versions of this. There's the big media like CNN, Fox, ABC to influencers, and then there's influencers to micro-influencers. And there's tons of people making 10K month with social media. Do you think that's what we're moving in tech where, I don't know, someone like my parents in Kentucky can build an app, make a nice couple thousand dollars a month? And then, not just their draw. Yeah, I think that's like an age-old thing that's been happening with technologies since the dawn of time.
Starting point is 00:32:24 So thinking about literacy, right? Like during medieval Europe, like reading and writing was regulated, was only like priests were able to do it. And priests were, like, controlling the population, right? Before the Protestant Reformation. And so there's like the priesthood control over the ability to read and write. And then we had the Gutenberg printing press. And that was decentralized the ability to print books
Starting point is 00:32:52 and have books available to the population. People started learning how to read and then learning how to write. And that caused massive changes in the world. Like leading up to revolutions and different religions and democracies and all of that happening because of reading. Like none of the world that we have today, would not have happened without mass literacy, right? We have the big media companies, but you can have a substack,
Starting point is 00:33:22 and there are people making millions of dollars in substack. There are people making 10K on substack. There are people making 2K on substack. And so, you know, Instagram is the same thing. You had to be a professional photographer at some point, and only the professional photographers could make some money, and then later on anyone could, like, take photos and make money. influencers is the same thing.
Starting point is 00:33:48 Really, like every skill and every profession goes through this, where it's usually an elite minority and their gatekeeping, they don't want other people to do it. And certainly programmers in BigTac felt threatened by Replut is because they make a lot of money. Like, we were in this, like, really strange world over the past, you know, 15, 20 years where if you go to computer science school, for four years, you're guaranteed, like, the best life and the, you know, the upper echelon
Starting point is 00:34:21 of income. And if you get a job at Google, you're set for life. And, you know, in four or five years, you're pulling a couple million dollars. And it's certainly threatening when, like, that skill can be democratized and anyone can do it. Anyone can build it. It's also threatening to VCs and the way Silicon Valley works. Because, Silicon Valley needed to build all this infrastructure in order to and raise all this capital in order to like fund every, you know, companies need a lot of capital to build the software and market it and all of that. But with social media with tools like repelit, you don't need as much capital. Right. And so I think every piece of technology in history has had this
Starting point is 00:35:07 decentralizing and democratizing effect. And every time there's like a pushback from some group of people that are benefiting from the gatekeeping. But then that the dam breaks and we live in a fundamental and new world, typically a much better world. And I think it's true of media. Like the democratization of media has been has been really good. I think that I, you know, I get, I get my news more from social media than I do. And it has its challenges, obviously, but it's much better than getting propaganda. That's very true. that's super interesting comparison about the Gutenberg press
Starting point is 00:35:46 with how religions evolved over time because, I mean, it really was, I mean, it would be ignorant of me to say it was the big three, but I would say they were much more dominant and there wasn't so many branches of I'm trying to think of the dating, but it's a very apt comparison.
Starting point is 00:36:08 I'm talking, what do you think everyone is getting wrong about AI and jobs? AI seems, as a replacement as opposed to a tool that can be wielded by the most creative, by the most ambitious people who want to make a fundamental change in their lives, in their communities, and their companies.
Starting point is 00:36:30 Obviously, AI can automate a lot of work, but to automate that work, someone needs to build that system. Someone needs to be observant enough to look around their company or look around their school, whatever community they exist in. So we're doing a lot of BS things.
Starting point is 00:36:50 There's a lot of bullshit work. There's actually a book called bullshit work, and it's by David Graber. And it talks about how most of the economy is kind of bullshit work. I mean, if you think about it, you know, post-industrial revolution, we created a world where machines were doing a lot,
Starting point is 00:37:13 but not enough. humans had to step in and act like machines. And so if you look at any office job, most of the time they're doing things that are easily automatable. They're putting data entry in Excel sheets. They're repeating the same process time and time again, and they know it's automatable. Or they're sending the same sort of email or they're doing the same kind of marketing. And you could say, okay, you know, we can get an AI system to like replace that person.
Starting point is 00:37:44 but there's going to be more work to be done, not less, because you know, you get more revenue, get more users, you're going to have different challenges, different operational things you should do. So it's a hamster wheel, but we can go much faster now. And the way to look at AI and jobs is how can I upgrade my workforce for them to be, become generalist business people that can wield AI for the benefit of our customers
Starting point is 00:38:20 on our bottom line. And we see it in a lot of our enterprise customers where the most ambitious people are creating billions of dollars of value of their company. So there's every company out there, every tech company for sure, there are people that are close
Starting point is 00:38:44 to the customer that feel that they have ideas that could make more revenue for the business, but they're often blocked by engineering. Engineering don't think the ideas is worth it, or they have their own roadmap, they don't care about it. And now a lot of them are bringing in Replit to work. They're building that idea, and they're making the money for their company, and then they're getting promoted, and then they're giving more power. And a lot of them go out and hire more people like them. I'm going to build a team. vibe quarters that are going to go around the company and find all the inefficiencies and go solve them. So we have a new role of this like generalist automator. And they're less parochial
Starting point is 00:39:27 than the engineer. The engineers like really focused on systems and engineering. They're not as focused on one particular domain like sales and marketing. They can hold the context of the entire business in their head. And they can find ways to increase efficiency or add revenue to the business. What's the most obvious AI automation that people should be doing today? In the context of companies, we see a lot of just like copy pacing of data. Like you have data and Salesforce and you want to get it into an Excel sheet somewhere or you want to get it into some data lake or something like that. And we see a lot of data in work that is like just copy-pacing
Starting point is 00:40:16 because they don't know how to write code. Engineers are busy. IT is busy. So just like anytime you find yourself copy-pacing things from one place or another and you do it regularly, like it's an obvious automation. Go to Rapplin just say go pull the data from
Starting point is 00:40:31 Salesforce and put it in Snowflake, right? So that's in the context of companies. I think there's a lot of data movement that happens manually and that really blows my mind. and even if there's like some process in between that you're doing some transformation in the data that you're doing, you can also have the AI do that.
Starting point is 00:40:53 So for example, like, every company has this person that's called like the deal desk person, every B2B company especially. And the deal desk person is responsible for generating quotes to give like order forms to give sales, people. So the salespeople put in the deal content in Salesforce. The deal desk person pulls it from Salesforce, puts it in a PDF, and then like post it to like Slack or some other chat
Starting point is 00:41:26 group. They talk about it. They send it to the client. The client gives them feedback. They go. They regenerate that. In a lot of companies end up hiring a lot of people doing just that. Like, you know, there's also entire complicated software systems that people pay hundreds of thousands of dollars for called quote configurators, right? So we hired a steel desk person and she automated all of that. Every time we get a new deal in a CRM, there's an AI that generates the order form directly, posts it in Slack. The salespeople take it like, you know, they send it to the client. They get feedback. In Slack, they give the bot feedback on the thing.
Starting point is 00:42:06 it kind of updates it and they send it back. So a lot of that used to be manual copy-pacing things and putting from Excel to Word to CRM. So anyone listening to you to this, working at a company, if you want to get a promotion, just look around you and see what people are copy-pacing data around. And you could build a bot
Starting point is 00:42:26 or you could build an AI or can build a piece of software that can automate that. In personal lives, there's a lot of things that, like if you're someone who's, interested in health and do a lot of tracking of health. Like I like to track my sleep and at some point it has like some sleep issues. And my doctor gave me like a sheet to track like, you know, what I ate, what medications I took, if any, if I exercise, and then what time I slapped, what time I woke up, any sleep
Starting point is 00:42:57 interruptions. And like I would wake up in the morning and like fill the sheet. And most of the time I'm lazy. I'm like, I don't want to do it. I forget, whatever. I'm like, you know, I can automate this. I took a photo of that sheet, put in a Rapplet. You can just skip Rapplet screenshot and just say like making it into an app.
Starting point is 00:43:14 Made it on an app and now it got a little easier to like put in the, you know, all this information. Then I was like, I still forget what I ate or what medications I've took or, you know, whatever I've done that day. So I was like, why don't, why can I like take photos of these things as I'm doing them instead of like forgetting and like doing it later? So throughout the day, I can take photos of whatever I ate or have done. And then that AI will generate the content for the next morning. And then I'm like, okay, but like I'm putting my time to go to sleep and what time I woke up and then interruptions manually. But like my mattress, I use eight sleep, for example, or you can have a wearable, have all that information. So there just like total replica, just like pull that information from there.
Starting point is 00:44:03 asked me for some login information. I did that. So now the entire process is seamless and automated, and finally I can commit to it. So I think in people's lives, there's so many things that are manual and they get lazy and they don't want to do. And one thing I would say about the age of AI,
Starting point is 00:44:21 and this is back to this idea of like, how do you generate ideas, if you're lazy, that's going to be a virtue. And I don't mean it in a way that you don't want to complete your work, but like if you're naturally just like don't want to do manual work you're going to go about your life and you're going to see all these places
Starting point is 00:44:41 that are just like boring and you should be doing manually and just like go build an app for that and maybe that becomes a consumer app that I you could like the app that I'm building for myself I could potentially put it on the app store at some point because it is probably useful for other people who want to track their sleep you've heard of calli eye right no what is that really oh that's uh we had the founder on I mean they do like I think he made like 25 million from it in high school or maybe that was the valuation. It was just take a photo of food and tracks
Starting point is 00:45:09 calories automatically. It just sounds like you built that for yourself as a personal. These things are easy. And it's not just that. It is, you know, it does sleep and does some of the other stuff. Yeah, yeah, I was like, that sounds more integrated. That's really interesting.
Starting point is 00:45:26 Huh. That's a cool space to think about like all the wearable tech and like all the things that are tracking data and building apps that combine all these things in general. But what do you think separates someone who's bad at prompting AI from someone who's really good at it? You know, I kind of hate the word prompting AI because AI researchers spend a lot of time figuring out how to make AI respond to human queries. I would say what separates those people
Starting point is 00:46:01 are the people who are good communicators. You need to just be good communicator in general. Like prompting humans versus prompting AI. Are you someone who can manage an intern well? If you're someone who can manage an intern well, you can manage an AI well. Think about it AI as an employee or an intern. Instead of thinking about,
Starting point is 00:46:18 oh, how do I talk its language? No. Just communicate well. Just take an idea, break it down to its parts. if its parts are still complicated, break them down further. It's all about breaking down things into individual components.
Starting point is 00:46:34 And then giving precise feedback. And giving as much context and feedback as possible, taking screenshots, taking images. If you want to get really good at just communication, in general, I would suggest like doing public speaking. I had a actually stage fright growing up. And I would still do it because I just don't like to be held back by my fears. But when I first came to the U.S., and I felt like I want to be able to start startups and be on podcasts and be a leader,
Starting point is 00:47:10 I thought that I need to get past that. And so I thought, like, what is the hardest place I could put myself in? it like throw myself in the fire to get past that fear. So deprogram the fear by desensitization, right? It's a popular, like, psychology method.
Starting point is 00:47:33 I think, you know, whereas in such a soft world right now that like psychiatrists, psychologists don't treat things like that. But it's always been the case. Like, if you're afraid of water, if your kid is afraid of water, throw them in the fucking water.
Starting point is 00:47:45 That's all my dad did it. So I took up, improv classes in New York and improv if you're bad at public speaking or thinking on your feet, you're going to do really bad at it. And then I took up storytelling classes and I did a storytelling show
Starting point is 00:48:06 where I told a story about how I hacked into my school to change my grades. And so I'll have to hear that story, but you continue to talk. So over time, I just got better at talking to people and, like, trying to communicate complex ideas simply because I think that's what a really good communication is about. And if you're good at that, then you're good at talking to AI and prompting it. My last girlfriend, she was like, Jack, I'm such a bad communicator.
Starting point is 00:48:38 Like, how do I, like, work on this? I was like, just going to an improv class. She didn't really love it. But, like I said, I think it helped her a bit understand, like, the basic techniques. Yeah. I think it's super helpful. But it is. So you hacked into your school to change your grades as a kid?
Starting point is 00:48:53 Yeah, so I was going to university in Jordan, Princess of my university for technology. Good computer science school. But, you know, I don't know how to pay attention to things that I don't like. Like if I'm taking like a history class or econ class and I feel like whatever they're teaching me is not going to be useful for me in life or it's just not interesting the way they teach it. I just can't, it's like incredibly painful for me.
Starting point is 00:49:19 Let's just sit there and just listen. So I would skip class and I would like go work on my programming, go, you know, take a job. I always had jobs during school. And then I would study enough to just pass. And I almost always pass. And some cases in like math and computer science, I would like get good grades. The problem in my school is that. and a lot of schools around the world
Starting point is 00:49:49 is that if you they counter attendance. So if you missed class too many times in a row, you get you get disqualified. And so I felt like it was kind of deep injustice. Especially for people like me
Starting point is 00:50:08 who are like creative, want to be doing things, they want to be sitting in class, which I think is like a very outdated way of learning in general. I think we're going to move past especially with AI. So all my friends were graduating.
Starting point is 00:50:23 I'm like five years in, almost six years in school. School should have been three, four years. And I feel like life is passing me by. Like, you know, I had all these big dreams and ambitions. I want to build companies, make a lot of money, all of that, but I was like stuck. And so I thought I'd use my skills to get over there.
Starting point is 00:50:46 problem. You can cast almost any problem life as a coding problem. And I thought, okay, I'm going to hack into school and change my grades from when they fail me for attendance to like a passing grade. So I spent two, three weeks in my parents' home in the basement. trying to like break into to the systems there. I would like work on like scripts and do network scans and all of that. And I implemented polyphasic sleeping. Do you know that? That sounds like Laura.
Starting point is 00:51:30 What is that? Michelangelo, you know, the inventor artists. It's like one of the most highest output human beings in history probably ever to come. Would sleep 15 minutes every four hours because he was working nonstop. Tesla did a similar thing I remember. Tesla's probably, yeah, did that as well. And so I was like, yeah, I want to be able to like, you know, work a lot and really hard and be really efficient. So I did that as well.
Starting point is 00:52:00 So for two weeks, just madness just going and like trying to map out of the system and figure all that out. So I finally found a vulnerability, a way to get into the system. But I was worried about maybe I didn't have the right systems. And so I had a neighbor who was going to the same school as me. I was like, hey, I can, you know, I have this thing that I can change grades. Can I test it on you? And so we test it. We changed the grades.
Starting point is 00:52:33 But actually it turns out that I was doing that in a replica database, not on the master database. So when he went to kind of pull his grades, his transcripts, it wasn't reflected there. So I spent another two weeks and then found a way or the actual system. And then I was confident that I could like change my grades and actually get to graduate. And I still felt like it was the just thing to do. It was a fair thing to do, right? So I changed my grades. Calculus and other things that I didn't want to go to school, but I passed.
Starting point is 00:53:09 I know, you know, but they failed me anyways for attendance. So I changed my grades. and I bought my gown, went to the graduation parties, took photos, I was just graduating. One day I'm at home and the telephone rings and I pick it up and it's like the person responsible for the college network and the registration system. He's like, look, the entire network and the universities down. And whenever we look at the code, we see there's a bug in your record. there's a problem where it says you're disqualified
Starting point is 00:53:45 from the final exam but you're also passing it turns out they had another field that I didn't know about that was like true or false whether you're disqualified for attendance and they had all these bad names for the field so I think they're bad programming on their part but still I kind of missed something So I had a choice.
Starting point is 00:54:12 You lie and you kind of live with a lie or you come clean and I just didn't want to lie and I told them, look, I have something to tell you I'm going to come tomorrow's school kind of share with you. So I went the next day and it was a much bigger deal than I expected all the different deans were sitting there, the computer science dean, the engineering dean. They've been racking their brain a whole night,
Starting point is 00:54:36 stayed up online trying to figure out what's the problem. And so I'm like, this is my opportunity to make it a tech talk as opposed to an interrogation and pull out the whiteboard and explain all the different problems and all the systems they had and how I hacked into it and really like pulled out all the all the stops and all the charisma to kind of try to impress them. And they were really impressed. So impressed and so kind of in the element of the technical discussion that I'm like, all right, now that I've explained it, I'm headed home.
Starting point is 00:55:08 I'll see you guys later. And I opened the door, I was like, wait, where are you going? Like, we got to deal with you. You just did this thing to our school. We just hacked into the school. We can't let you go. Luckily, the president of the university was someone who was like really enlightened and saw the talent that I had.
Starting point is 00:55:22 And they could have easily derailed my life, you know, but I, you know, I explained, like, my reasoning for Wyatt did this. And he was understanding. and he gave me at the time the Spider-Man line is like, you have a great talent, great power, but with power comes responsibility. I was very sincere about it. He said, we're going to let you go,
Starting point is 00:55:46 but you're going to have to spend the summer working for the university trying to fix the vulnerabilities and the security issues. And so I was like, that's no problem. I would love to do that. So I show up in the summer, and the programmers there hate my guts
Starting point is 00:56:03 because I hacked into their system and they wouldn't let me in like I would go knock at the door where they work and I can see them and they wouldn't let me in so they didn't give me a chance to contribute and fix the system
Starting point is 00:56:14 and by the way everyone was cutting me slack I think all the professors just was worried I'm going to hack into their emails and so I had this like implicit power and it was like notorious it was really cool as well I was getting recognition everywhere and this computer
Starting point is 00:56:33 science dean comes and tells me like, hey, you know, I helped you a lot to get past this problem. So for your graduation project, you need to work with me. And what we're going to do is we're going to hack into the school again. I'm like, bro, I'm not, I'm past that. I'm not even working on security and hacking. I'm just like, you know, I'm going to build companies and things like that. It's like, no, you have to do it. Or, you know, I won't graduate you.
Starting point is 00:56:55 So I was like, okay, I'll do it. And so I, I'm like, okay, but this time I'm going to build a system. I'm not going to go hack directly into it. So I built a piece of software that scans any system for vulnerabilities. And sure enough, I found some vulnerabilities in the system. So my graduation defends. So you're sitting in front of the different deans, and you're kind of getting a presentation.
Starting point is 00:57:17 And I told them how I built the security scanner. And by the way, I'm going to run it on the university system. And yet we have a bunch of fornabilities here. And then different dean of engineering was, like you're lying. And I was surprised that he said that. I'm like, why do you think I'm lying? And he's like, because we fix the system.
Starting point is 00:57:41 I was responsible for fixing the system and we fix the system. I was like, clearly you didn't. It was like, prove it. I'm like, okay. I also built like something in my system where you can automatically execute the foreign abilities. So I
Starting point is 00:57:57 get a shell access to the database. I'm like, okay, what do you want us to find your password or your password or your salary or how do you want to it's like okay get my password so with a query I get his password and it was some embarrassing password I forgot what it was right now
Starting point is 00:58:15 but people have all sorts of embarrassing passwords and his face turned red and he got really angry and he got up shook my hand and left well turns out I was like a pawn and this rivalry between the two different deans so the other dean Like, one dean was given the responsibility to secure the system.
Starting point is 00:58:36 The other one wanted to kind of make sure I re-hacked the system to prove it. But anyways, at the end, I graduate. And I now have, like, really great relationship with the university. That's a great story, genuinely. It seems like some type of commonality with really successful founders in your space is like this kind of hacker, black hat, white hat background. Just on this concept of learning in general cheating hacking the system, how do you think we should be using AI to become smarter?
Starting point is 00:59:17 And how do you do it personally? I think there's a mindset here. There's a mindset of, first of all, the world was built by people that are not much smarter than you. And there are a lot of rules that are accidental, that are there for historical reasons. And your job is to find a path to the future, find the way of doing things that's most aligned where the world is headed.
Starting point is 00:59:55 because the advice your teachers, your parents are going to give you, are just not valid anymore. My generation, like millennials, the advice that the boomers would give us is that you work hard, you get into good university, you check this box, this other box, you get a job, you buy a house on a car, get a family, that's it, you know, a few years in, like, you'll, you know, 20 years later, you're a millionaire because your house property went up,
Starting point is 01:00:25 value and you retire and live happily ever after. That doesn't exist. That does like existed for like 20, 30 years post-World War II and then it's gone. So it's not about cheating. It's about figuring out how the system is rigged against you. And how do you actually hack it? How do you get past it? How do you, how do you, how do you,
Starting point is 01:00:56 Do things in a way that is more native and true to where the world is headed today. AI is a great tool for that. Just the fact, if you're someone who just understands how these tools work and understand how you have an amazing time advantage, you can do things a lot faster. Again, there are a lot of programmers
Starting point is 01:01:19 that are still doing programming the old way and they're going very, very slow and they're going to continue to go very slow until they get obsoleted. But there are a lot of new builders coming up today and they're like, I'm going to just like make things with with Rapplet or tools like that and I'm going to go just a lot faster.
Starting point is 01:01:35 I'm going to iterate faster, make better ideas, built better companies and systems. So I would reemphasize this virtue of laziness. Like, I think a lot of what we're taught in school is not worth it. It's not worth our time. and my approach to school was like, how do you get around it?
Starting point is 01:02:10 Like, I needed a college education to get to the United States. Otherwise, I would have dropped out. If I was in the U.S., I would have dropped out. And it's probably a good idea for a lot of people to drop out and not go to college. And so, but I needed to do that in order to get a visa to get here, right? And so think about your circumstances and think about ways around them
Starting point is 01:02:41 and there's probably ways in which AI could help you get there faster and do things better and realize that if you truly understand how this technology work, if you're up to speed on it, if you can do things better and faster than other people, you have an advantage and just lean into that.
Starting point is 01:03:00 I think that's super helpful. What is it? Hormosey says it's Volume times feedback loops and AI helps you build things faster, iterate faster. On the concept of jobs, what do you think will be the highest paying jobs in the age of AI? Entrepreneur. Entrepreneur. Like, my mindset has always been about building wealth as opposed to getting salary.
Starting point is 01:03:29 Right. There are a lot of different ways to build wealth. But all of them revolve around ownership. I was supposed to getting salaries. When I got my first job in the U.S. Working for a Code Academy, a company that sold for half a billion dollars, I told them you can just pay me enough to eat, just give me as much equity as I can give me.
Starting point is 01:03:51 I was paid $70,000 in New York City. You know how painful that was? I was living in a studio with other people. Right. But who cares? Like, you know, if you're young and scrappy, like, you know, you can eat anything, you can sleep a few, hours, you can sleep on the ground, who cares? You know, you're very resilient when you're in your
Starting point is 01:04:13 20s and, you know, early 30s. I think things get a little worse after that, but you're very resilient. And your job is to build equity. And the best way to build equities to start a business. The second best way to build equity is to join a business that someone else are and get equity in it. And then third is if you already have capitals to invest. and build equity that way. And I've done all these different things. I started by joining a startup that was growing fast, got as much equity in as possible,
Starting point is 01:04:47 worked as if I was a founder. Then I started a business, got some liquidity from that, started investing in other businesses. By the way, a lot of early Replit employees are already rich. A lot of early replet employees already got some liquidity out. We let them sell some share. shares. Some early
Starting point is 01:05:09 Replet investors sold some shares as well. If you invested in Replit when you were like, you know, six million valuation and we were like many order of magnesium more than that right now. You made a lot of money, right? So,
Starting point is 01:05:25 if you're surrounded by really smart people, you don't have to have the best ideas. You can join their ideas. You can also like figure out a way to invest in your friends and join in their venture. Or if you have a certain skill. Let's say you're an influencer and you want to partner with an entrepreneur, try to get
Starting point is 01:05:45 equity. You can get a lot of cash for sure, but what are you going to do? You're going to get taxed 50% on that cash. You're going to spend it on nonsense instead try to get equity and build that equity up. It seems like the only two ways to get rich are build a cash flow business and move to Puerto Rico go or to buy and revoke your citizenship, hate your life for a few years and sell a company. We don't have to hate your life.
Starting point is 01:06:15 Like, you can have fun building a business. Right. That's fair. I guess hate your life in terms of not have access cash to spend on stuff, just kind of like living below your means to an extent. But if you build the business properly, I guess you would have access cash. It would have access to cash at some point.
Starting point is 01:06:33 Like, it's a lot more fun later in life to, like pulling a six-figure salary. Like, you're not going to, it's not an exciting life. I think having wealth is a lot more. Like, just the calmness on your nervous system that you've escaped the rat brace that itself is worth it. And so, I don't know, I've never, like, yeah, I've went out and partied and experienced all of that.
Starting point is 01:07:06 And you can do that with not a lot of money. Back in Jordan, we used to, like, drive to Beirut and, like, go clubbing for, like, you know, 20 bucks. You know, it's like, you can have fun with not that much money. But then there's, like, a huge dead zone in terms of, like, how much quality of life and how much hedonism or fun, if that's why you're interested in, up until you get to operational on of wealth. Like there isn't that much difference between like a student going out. Like some of the best fun you could do just like going out to clubs or traveling or whatever, going to low income places and like having fun there. And then it's not that much better when you're pulling, you know, a few hundred grand a year.
Starting point is 01:07:53 It's like you're kind of stuck at that point. But what you want to focus on is building enough equity. and up until to the point where you're just like starting to build a family because that's when you're gonna have to like sell down a little bit
Starting point is 01:08:09 you're not gonna have as much time and so on and so forth so I would just like focus on building equity that's super helpful yeah the first startup I was at I had equity I did the same thing as you
Starting point is 01:08:22 I like took a lower salary to try to get as much equity as possible but I think I felt victim to the sentiment like oh but on yourself I didn't even like pay the strike like price to vest my shares. And I looked at it the other day
Starting point is 01:08:35 and the company had sold and I was like, shit. I didn't know how much for, but yeah, if someone gives you the opportunity for equity, it's usually worth it. If you think they have a good chance of selling, especially if people are building to sell. It feels like some people are building to sell
Starting point is 01:08:51 quickly versus some people are building to sell on a longer time horizon. I do want to ask you, what do billionaires know about money that people just starting out in entrepreneurship don't realize. Like, what's something you wish you knew about the way money works itself or things you can do with your money, like two years ago, four years ago? Money is, money, like cash, like dollars are worthless. They are depreciate, fast depreciating assets. Like, they depreciate faster than your 177.000.
Starting point is 01:09:29 Honda Civic, right? Like, it's like, don't hold cash. Like, again, that's why I emphasize equity. It's like assets, like buying assets. Like, all the assets go up, like gold right now is just ripping like a shit coin. So assets go up. Cash doesn't. And do stocks really go up, though?
Starting point is 01:09:54 Like if you're just doing S&P or is it just kind of like a wealth maintenance thing from your perspective? I mean, over the past couple years, the S&P has been dominated by a few companies, then they've gone up a lot. Like, if you invest in the S&P, what is it, like 20, 30% in 2025? That's huge. Is it 20, 30%? I'm not entirely sure. I think the average is 10% with accounts for inflation and be like 5% returns.
Starting point is 01:10:20 Oh, really? That's it? Okay. I don't know. I do have some money with like a money manager that has, like just like trying to maintain wealth. But I also do buy stock. I buy,
Starting point is 01:10:35 I invest in startups. I buy stock in the companies that I really like. I bought Tesla like a long time ago because I really liked the product. It's like the grug brain approach to investing. It's like, buy stocks you like. I don't know. I don't want to give like too much of financial advice
Starting point is 01:10:54 because like a lot of this is like very, very selective. But like the main. the main idea here is assets, like understanding inflation, how inflation works and how the dollar is like continuously being printed. Really, every currency out there is like continuously being printed. And if you're optimizing for cash,
Starting point is 01:11:13 you're really losing wealth and you're not really building wealth. Wealth is through accumulation of assets. And those assets tend to, there's certain assets that tend to compound. I bought Bitcoin. When I left Facebook to start Replit, I sold my Facebook shares, which I could have held on them, and though they've done really well. But I bought Bitcoin and put the rest in my company. And so understanding inflation is core and go research that.
Starting point is 01:11:43 I really understand how the system is working on debt and quantitative easing and all that stuff. You don't have to understand that that much in depth, but the main lesson is the economy is run on inflation. and the rich don't hold cash, they hold assets. I don't know. I mean, I don't really think about money all that much. And I don't say it in a way to like, you know, to brag or anything. It's just like for me, just like build cool shit and money will come. Right.
Starting point is 01:12:23 important things and products and services that you think are just the future. Try to predict where the future is headed. Be plugged enough to figure out where the future is headed. Like follow the tech news, follow the trends, and form a prediction about the future, and then bet on that and then evaluate that over time. And continue to figure out. Like when you hear about a new thing,
Starting point is 01:12:49 don't be cynical about it. Like you hear about, like, you know, a lot of my generation, heard about Bitcoin. A lot of them is like, what is this? But if you pay a little bit of attention, you're like, okay, and you understand the system, you understand that this is an alternative asset to cash. And like, you know, a lot of people are looking for alternative assets. And so you have some hypothesis about the future. So have some predictions and some beliefs about the future and try to bet behind them. And again, most importantly, build things. I think that's the best way to gain wealth is to build useful things.
Starting point is 01:13:23 a few AI billionaires that has a, it's funny that it's even a contrarian perspective on the future of AI, but why do you think AI isn't going to kill us all? I, a lot of my peers in Silicon Valley have this like very mechanistic view of life. They think of humans as, you know, meat robots. And I think fundamentally, I think there's something more than that. There's something, there's some spark about consciousness, about humanity that's different and that's special and that life is important. Maybe it's a religious view, but even without like a very concrete religious view, you can arrive at the same answer by just being perceptive, like just looking at the world around you. Like how can this all be an accident? Like just like even through science, like when you
Starting point is 01:14:24 look at, you know, I see these videos of like how DNAs work and just like this sane engineer, micro, like nanoengineering. Just like it doesn't feel like an accident. So there's something about the mystery of life, the mystery of creation, the mystery of why we're here that I try to struggle with. And I think a lot of people in Silicon Valley, a lot of people in tech have this very dry physicalist view. We're automaton. It's input, output.
Starting point is 01:14:57 And therefore, the natural conclusion is that humans are not very special. We're going to build a more intelligent being. That intelligent being is going to be so much more intelligent that, again, treat us like ants in the same way we treat ants. But no, I think there's something special about humans. And I believe in, like, I'm, like, I'll tell you something about my personal life that I think is very interesting. I think a lot of success
Starting point is 01:15:30 comes down to like mindset and visualization. Why does that work? Why does visualization work? It does work. A lot of people swear by it. If you visualize yourself as successful, I should visualize the cars that I want to drive. And invariably, I would get those cars
Starting point is 01:15:49 somewhere in another. I would like, if I want to meet someone, I would like have this intent about meeting this person and eventually I will meet them somehow and it's like random circumstance like whether it was like people in tech that are respected with us Paul Graham, Mark and Jason I always wanted to meet Paul Graham
Starting point is 01:16:13 and I always had this intent of like I would like imagine the conversation we would have. Paul Graham is the founder of Y Combinator and like he also founded the site Hacker News and I was reading that a lot. He wrote a lot about programming and things like that. I really respected how he thought.
Starting point is 01:16:30 And, you know, one morning, obviously, like, I do things in the world. I don't sit there just visualize. Like, you act. One morning in 2017, I get a message from Sam Altman on Twitter. And he's like, hey, I'm Sam. I run, and I say, dude, I know who you are. So Sam before opening,
Starting point is 01:16:51 I was running Y Combinator, the Premier, startup accelerator. And it's like, I'd like you to come meet me. And so I went and met him and he gave me this address. I'm like, where is this? This is not why I come in here. I know my, why come in my view? And I walked in this place and it was called Open AI.
Starting point is 01:17:09 And next to it was NeuroLink. It was like a small Elon thief them in the mission in San Francisco when Elon was still involved in opening eye. So I met, met Sam there. And when we sat down, he said he had his laptop front of him and turning around. He's like, read this email. There's an email from Paul Graham. And he says, like, there's this site replica.
Starting point is 01:17:28 It's, like, really cool. It's something I've thought about for a long time where we can, like, make it really easy to code and host applications. And we should, like, reach out to them and get them into the YC batch. And we had, like, try to apply to YC many, many times before. But it, like, had this intention that, like,
Starting point is 01:17:46 I'm going to meet Paul Graham and he's going to, like, know about a replica. We're going to discuss it. And he's going to get really excited about it. And that happened. And like two years ago, I was like totally different person, totally different industry. So it would be really cool to meet Tucker Carlson. I respect him a lot.
Starting point is 01:18:05 I respect how brave and courageous he is and how he can speak his mind and how inspiring is, like, view of America is and what it could be. And through a series of accident, I ended up meeting him. Do you know Martin Screlli? Farmer bro? That sounds a little familiar, but no. You should definitely look up Martin Scraly. Martin Screlly is a farmer entrepreneur
Starting point is 01:18:36 that went to prison for some financial reasons, but he became very notorious for a few things. One is he bought a Wu-Tang album that was like won in production and like he become hated because like he hoarded that. but like also he just like was like the initial like social media troll and like got into under everyone's nerves and all of that but anyways I used to watch his stream because he would like put out
Starting point is 01:19:03 a lot of really cool financial material we talked about financial literacy and I learned a lot from him and when he got out of prison one day he was like coding online it was coding a replica and so like I sent him a message I'm like hey like I saw you're quoting a replica it would be called like I sent him a tweet so he responded We got on a phone, whatever. I ended up investing in his new startup. And you know, you should just send a few other people in Silicon Valley. And then one day he's like, you know, I owe you, man. You know, it's really cool.
Starting point is 01:19:35 How have you been able to help me get back into the startup game? What can I do for you? I'm like, you know, you were on Tucker the other day. Invited you on the show. I would love to meet him. And then he made that connection. We got on a call. I have very similar story with Joe Rogan as well.
Starting point is 01:19:52 I got on Joe Rogan's show. So, I mean, I'm kind of digressing a lot. But all I'm saying is that there's like more mystery to life. And I've experienced a fair amount of affecting the world in a very indirect sort of mental way. And there's something to that. And like a lot of people just don't struggle with the fact that there's, more to life than this just like mechanistic physics of it all. So when you start from this premise,
Starting point is 01:20:26 and I can talk about all the different, I can like have a technical debate about AI as well. But just like at rock bottom, I feel like there's something special about humans. There's something about the mystery of the world that we haven't really figured out. By that same token, just to clarify, because I think this is fairly high-level thinking,
Starting point is 01:20:44 but I understand what you're saying about it, is basically you feel as though you're the type of individual that thinks there's magic to life and you will things into existence. And this is something that it is your logical view as well as it is the view that you want to have for humanity. But do you think that these other individuals that have this AI, Doom thesis,
Starting point is 01:21:07 are trying to will that reality into existence? I think there is a sense in which intentions matter and you can get into a self-fulfilling theories of the world right and we've seen that throughout history predicting doom and bringing about
Starting point is 01:21:35 crisis you know happens a lot and so I think it is important to be optimistic and I think if you have it like a doom or mindset and it is dangerous for that reason for sure. And so I do think people who are naturally depressed and not very optimistic do kind of gravitate towards a more dumber mindset. It's so fascinating because with you in particular, I spoke with another AI founder about this.
Starting point is 01:22:07 I was like, it's so interesting that Amjad's thesis is like, like AI won't kill us all. And like you would assume that would be the thesis of all the billionaire AI founders like, oh, it's not going to kill us all. I was like, oh shit, it might actually. But it's really like they're all saying it is, but it's actually not. And I think the only other person that's really in the space with these individuals that has a similar thesis to use, Naval Ravi Kant.
Starting point is 01:22:38 There's probably a few others that I just haven't. consume their content. But what's the main logical reason for it? Just to give people some hope, because I've had a lot of Dumers on my show and I haven't had anyone in your position. So think about how machine learning models are trained. Right now, machine learning models are trained by consuming
Starting point is 01:23:02 super large corpus of content, essentially all of content on the internet. and then simulating creating algorithms so they would learn by creating internal algorithms essentially that's a good way
Starting point is 01:23:21 to send machine learning to simulate how a human might respond to a query you can go really far with that it's amazing that it works but if you give a query to an AI
Starting point is 01:23:41 for something it doesn't have an algorithm for it will fail at. And there's a bunch of research showing that it's called like out of distribution queries or context. So, you know,
Starting point is 01:23:57 if a machine learning model is not trained on a certain like language or flavor of math or something like that, it will struggle to give you like a reasonable output and you end up in hallucination end up with all sorts of problems. The reason AI is really got a coding
Starting point is 01:24:15 because coding has a binary outcome. It's either true or false. Anything that is soft, more requires, like reasoning through the problems not based on prior material. AI right now is not doing very well at. and AI companies are having to buy more and more prepressure data to get better at these things.
Starting point is 01:24:46 So the way they're training models is they'll buy, you know, they'll go into an industry, oh, let's target accounting. We're going to go buy all the data that exists out there. We're going to scrape all the data that exists out there. We're going to buy all the data. We're also going to get accountants in Africa that are going to sit down all day
Starting point is 01:25:01 and they're going to do spreadsheets and they're going to talk over how they're doing spreadsheets. And they did that encoding as well. And they're targeting biotech, counting, science, everything in order to do that. And that's a very repeatable process. And you can create AIs that are very good at doing jobs that people are currently doing. But that is not like a general intelligence that you can drop it like you would drop a human into any sort of environment and they can like learn efficiently. So self-recursive improvement is kind of a fallacy to you.
Starting point is 01:25:36 like when it comes to things that aren't binary? I think we need to struggle with the question of consciousness because consciousness I think is an important ingredient of generality and how humans reflect on their decisions and their questions. And, you know, we come up with these ideas that seemingly come out of nowhere. We call them inspiration, uses, whatever people call them. It's like, oh, suddenly I'm struck by this idea, like Eureka, right? and we don't know how it works in order to build it into machines.
Starting point is 01:26:09 All of like science come, a lot of the scientific, big scientific discoveries come from these eureka moments that is not based on prior, on strict prior training, that is a fundamental paradigm shift, a huge jump that comes from somewhere. We don't know where it is.
Starting point is 01:26:27 And by the way, all the original scientists in antiquity and history talked about this in spiritual, terms. You know, I remember reading Bertrand Russell's book about like the history of like Western philosophy and things like that. And he was talking about Pythagoras. Like Pythagoras was running a religious cult. It was not running a mathematics club. And they came up with all these different theories. And if you look at the current state of humanity, we're actually not having that much scientific breakthroughs. And I think counterintuitively, because we're, we're not. And I think counterintuitively,
Starting point is 01:27:04 we've become so mechanistic in our thinking and less spiritual, less open to mystery and mysticism, that degraded the quality of science. Right. Because science became an industrial process. It became a bureaucracy. It became government funded. It became all of these different things as opposed to people seeking true knowledge or original knowledge and trying to seek in all these different ways
Starting point is 01:27:35 and arriving at it and all sorts of random and interesting and, you know, mystical ways. Science used to be more spiritual, is what you're saying? Yes. I mean, Pythagoras, correct me if I'm wrong, he basically invented like this whole religion of numerology, right? That's probably true.
Starting point is 01:27:54 I think Newton spent most of his life, like Newtonian physics was a side project, most of his life was spending studying a religious text in doing things like alchemy and random things like that. Tesla said that all of his ideas came from dreams.
Starting point is 01:28:11 Yeah. Like spirit world. Einstein too. Like Einstein was like, oh, sitting his chair and like dreaming the whole time. And so we kind of lose something about what is essential to us as humans
Starting point is 01:28:25 and what is true discovery and inspiration when you think about the world in purely mechanistic ways. and I doubt that without struggling with these questions, that we're going to be able to replicate that into machines and have machines going to go discover new discoveries. They're going to do amazing things for science. Like protein folding is an exact kind of problem
Starting point is 01:28:48 that you want to direct an AI on. It's a computational intractable problem. It's really hard for us to solve in many different explicit ways. It is a large data problem, big data problem. And so we're going to use AI to advance. science and all sorts of exciting ways. Those original paradigm shifting ideas I think are human in a way that
Starting point is 01:29:09 is hard to describe. Is there any spiritual practice you do to come up with ideas, be more creative or just do better in business? I do quote plunges. Anyway, I do a cult plunge. I,
Starting point is 01:29:30 it shuts down this like constant thinking, talking mind that I have and suddenly I become more receptive to inspiration and ideas outside of me. I don't know. I think you can replicate some of that in meditation. I haven't done that very well,
Starting point is 01:29:55 but like I find like physical shock to my body tends to create stillness. And so cold plunge is one. of the big ways you can get it with exercise as well like exercise to weight like you can't really think a lot and a lot of people find that but I think you can replicate in different religious practices and things like that but for me like I found that cold plunge just forces my mind in a certain way and I've and it's just like it creates this clarity and sometimes there's like really
Starting point is 01:30:26 exciting ideas that comes out of that it's all about creating state changes um and kind of split testing, like what ideas or I guess even personalities, communication styles like come out of those. But do you feel like I gave you a good answer for like the Dumerism question? I really did want to touch on the cult. But I'll say this. The aspect of Amjad's thesis on AI Dumerism that I found most fascinating way. was in his interview with Tucker Carlson, where he talked about the cult, the Silicon Valley of these AI Dumers.
Starting point is 01:31:14 And when I realized that there's some propaganda involved, maybe some weird spiritual shit, I was like, yeah, I don't really entirely believe in this AI Dume thesis. So I'd definitely recommend checking that out. But by the way, part of the reason why I didn't focus on that is because I think that influence is waning. When I did that interview at 22,
Starting point is 01:31:35 it was at the height of the influence of the effective altruisms. And I think luckily through various things that happened, including, like, you know, tech people responding to it, their influence is sort of winning. But certainly, I mean, in that interview, I talked at length about the self-serving nature of their thesis and how they use that to, like, manipulate people and to gain all sorts of like favors and weird things that are happening there.
Starting point is 01:32:11 But luckily they're not as important. Theoretically, do you suspect intelligence agencies or the military have some involvement with AI development? The cool thing about large-length models is that it doesn't really matter because it is a very simple process. Being at the frontier is very hard, like creating GPD5.3 or Opus 4.5 or whatever. GPT2 at some point was the frontier.
Starting point is 01:32:47 Now you can train GPT2 on your phone. So there isn't enough of a gap that they can create to have proprietary technology. This technology is decentralizing and becoming more accessible really, really quickly on order of months. Now we have open source models from China. coming out and maybe there's involved in the government there but coming out that are as good as like the models
Starting point is 01:33:14 that came out three months ago from Anthropic and Open AI so maybe but it doesn't really matter because once we learn what they've done in the latest generation of things and as compute gets cheaper anyone can replicate
Starting point is 01:33:31 these things at home and that's the cool thing about what's happening in the world today these companies are trying to create enough of a mode around data and computer and things like that in order to block competitors and create more proprietary technology and create an oligopoly around it. But so far they haven't been successful, luckily. So you would suspect that the top models are at most a few months ahead of what's publicly accessible.
Starting point is 01:34:00 Okay. That's fair. I think a lot of people have suspicions that, oh, they're gatekeeping this technology that's 10 years ahead. You can download Kimi 2.5. on your computer and run it. And you would get a model that is as good as, you know, GPD5 when it first came out.
Starting point is 01:34:18 I'm John, you've built a billion-dollar company by making tools more accessible to the everyday person. If you could distill everything you've learned, what's the one piece of advice you would give to make sure anyone listening could find success? I was started with intention, with intention. and focus and not and and and and and perseverance like if you're really intent on finding success
Starting point is 01:34:50 you're going to find success no matter who you are like I think if you if you put if you just like visualize it you put your mind into it you have the right mindset you don't have limiting beliefs I can meet whoever like I can there's no difference between me and some other you know billionaire I can learn all the skills needed. No one is like, we're better than me. Start with these beliefs and you're going to be unstoppable. I think at some point, the hard thing
Starting point is 01:35:28 about scaling a company from like a billion dollars to $100 billion to $1 trillion is the game changes fundamentally. And that's what I'm going through. right now, you know, you become resource rich but time poor. That's like the worst feeling. Like you don't have enough time to do things manually and you have to like delegate a lot. You have to learn how to like build a team and hire and do all these different things. Those are all very important. But I think getting the initial set of success, it's all about
Starting point is 01:36:08 being really good at believing yourself, not quitting, not taking no for an answer, keep going, keep going, never quit. I think those are really the only necessary ingredients in order to achieve enough success to potentially retire or, like, escape the rat race. I love that. I've been wanting someone to give that.
Starting point is 01:36:39 advice for a while. It's kind of like this idea that people say you get what you deserve, but it's really like you get what you want. And to find a success, you have to really genuinely want it. And if you don't have it, then you actually don't want it. Yeah. Yeah, exactly. That's right. You have to really, really want it. Here's the irony of life. At some point, you're going to get to a position. We're like, do I really want it? And that's when, you know, you have to grow and change your mind. And that's what I'm saying is scaling past that is a different thing. Like, there isn't any material thing that I really want right now.
Starting point is 01:37:18 I'm not that liquid of a rich person, right? Like, on paper, I have large wealth. Like, I can't buy everything that I want. But I also bought enough things to know that that's not what life is about. And I wish that for everyone. I wish for everyone to get to a point that they find that the material world is just like not all that worth it. I think money is
Starting point is 01:37:39 great in so many ways but you buy a car and you're like, all right, that's cool. It's like it's not going to really at some point you're like, okay, what do I really want? And that question is actually a lot harder. But if you're starting from zero,
Starting point is 01:37:56 you know, fix your mind on whatever it is, a car, success, status, whatever it is, and drive really hard at it and you're going to get it. Beautiful. Well, everyone, this has been your guest. I'm John Mossad. This is the Jack-Neil podcast.
Starting point is 01:38:11 I appreciate you coming on. Thank you. Thanks for listening to this episode of the A16Z podcast. If you like this episode, be sure to like, comment, subscribe, leave us a rating or review, and share it with your friends and family. For more episodes, go to YouTube, Apple Podcast, and Spotify. Follow us on X and A16Z and subscribe to our substack at A16Z. Thanks again for listening and I'll see you in the next episode.
Starting point is 01:38:42 This information is for educational purposes only and is not a recommendation to buy, hold, or sell any investment or financial product. This podcast has been produced by a third party and may include paid promotional advertisements, other company references and individuals unaffiliated with A16Z. Such advertisements, companies, and individuals are not endorsed by AH Capital Management LLC, A16Z, or any of its affiliates. Information is from sources deemed reliable on the date of publication, but A16Z, does not guarantee its accuracy.

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