YC Root AccessThe Voice AI Platform Powering a Billion Calls a Year
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40 min read · 7,828 words- 0:00 – 3:06
A Billion Voice AI Calls a Year
- GAGustaf Alströmer
[upbeat music] Today, I'm here with Nikhil and Jordan from Vapi. Um, thanks for coming. Uh, why don't we start with you guys telling us about Vapi? What are you guys building?
- JDJordan Dearsley
So Vapi is a platform for deploying voice agents. Uh, today we have about a billion calls served, uh, annually, and we work with folks like Amazon and Uber and Intuit helping to, uh, automate their phone calls.
- GAGustaf Alströmer
What would you say is the biggest misconception about voice AI right now?
- NGNikhil Gupta
Probably the fact that, um, people don't realize how hard it is-
- GAGustaf Alströmer
Mm-hmm
- NGNikhil Gupta
... uh, to get a reproduction-
- GAGustaf Alströmer
Yeah
- NGNikhil Gupta
... to a grade. Like all these businesses out there, um, they wanna resolve 100% of their calls, and it just takes so much effort. Um, what's hard, most people don't realize how to take their business processes and make them into agents. Um, making it into an agent that's a cohesive experience for our customers-
- GAGustaf Alströmer
Mm-hmm
- NGNikhil Gupta
... that's low latency, again, at the cost that they need. It's following all the guardrails-
- GAGustaf Alströmer
Mm-hmm
- NGNikhil Gupta
... that are relevant to them.
- GAGustaf Alströmer
Mm-hmm.
- NGNikhil Gupta
Uh, so the skill of voice agent building is just hard, and, and that's why we exist, to make the... make it easier for them.
- JDJordan Dearsley
Yeah. And, and I would say, like, voice as opposed to chat is a very unconstrained interface.
- NGNikhil Gupta
Yes.
- JDJordan Dearsley
You can say or do anything, and customers expect that it'll say or do anything back-
- NGNikhil Gupta
Yeah
- JDJordan Dearsley
... on- once they, once they get how it works.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
So there's a whole fundamental different set of challenges under extremely low latency-
- NGNikhil Gupta
High, low, low latency
- JDJordan Dearsley
... uh, conditions.
- GAGustaf Alströmer
It takes a human 10 years to learn how to-
- JDJordan Dearsley
Yes
- GAGustaf Alströmer
... speak properly, and you're supposed to do it out of the box.
- JDJordan Dearsley
And then on top of that, you're putting it in front of real customers.
- NGNikhil Gupta
Yeah.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
And so, uh, you, you, you better make sure it works. It's not an internal tool. It's not whatever. It's like, if we are down, like, your customers don't get help that day.
- 3:06 – 6:49
Betting on Better, Faster Models
- JDJordan Dearsley
you don't actually know.
- NGNikhil Gupta
Yeah. And we were trying to then, like, boil it down, like, to something irrefutable.
- GAGustaf Alströmer
Yeah.
- NGNikhil Gupta
Uh, and like, I think Jordan now has a good framework around it.
- GAGustaf Alströmer
Mm-hmm.
- NGNikhil Gupta
Like, what's something that, like, in 10 years just feels, like, inevitable?
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
Mm-hmm.
- NGNikhil Gupta
Like, what is something... We don't know. We didn't know it was gonna be, like, next year or, like, this fast. Uh, but, like, if we kept on this path, in 10 years, can we claim that models are gonna get cheaper, faster, and better, and reach human performance?
- GAGustaf Alströmer
Mm-hmm.
- NGNikhil Gupta
Like, will, will it be fast enough at the intelligence, fast enough? It was like, "Well, yeah. What the hell?" Like, it's like-
- GAGustaf Alströmer
Yeah
- NGNikhil Gupta
... it's just so obvious when you look at the graph that that's gonna happen. So we didn't know the exact timestamp, uh, but it was just a macro trend we could really, like, lean on. So that wa- that's what it, it became a ir- irreducible fact.
- GAGustaf Alströmer
It's almost like we, on the outside, got, like, some spot checks or, like, sometimes we heard a cloned voice model be like, of my voice, and be like-
- NGNikhil Gupta
[laughs]
- GAGustaf Alströmer
... "Wow, it kinda works."
- NGNikhil Gupta
Yes.
- GAGustaf Alströmer
Like, they can, you can s- say something with my voice.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
Yeah.
- GAGustaf Alströmer
And then in the background, you were building this big company that basically-
- NGNikhil Gupta
Yeah
- GAGustaf Alströmer
... would be able to answer the phone with low la- latency.
- NGNikhil Gupta
Everywhere. Yes.
- GAGustaf Alströmer
Yeah.
- NGNikhil Gupta
Exactly.
- JDJordan Dearsley
It just wasn't, I think, very obvious to people that people would be talking to models. Like, this was before GPT-4o real time and all that stuff. But we had chained together transcription model, our trainings model, text-to-speech model together, and when you talk to it, it would, like, take 10 seconds to reply, and it was really shitty, and it would, like, sound like garbage, and it would interrupt you and all that. At the time, we thought it was just reducing latency, latency. If you could just reduce the latency, then we could do it. And so if, if you draw that line out of how latency is trending-
- GAGustaf Alströmer
Mm-hmm
- JDJordan Dearsley
... per dollar, per, you know, uh, com- per, like, compute, um, it looked good. And so we were like, "Okay. Well, let's set a vector that's ambitious. Let's assume that everybody's gonna be talking to agents, and that'll be the default interface for everything."
- GAGustaf Alströmer
You guys have been on a long journey to PMF, and now you have it. Let's go back to sort of, like, the very beginning. You applied to YC with a very different company than you even did YC with, with.
- 6:49 – 10:44
Building a One-Click Zoom Button
- GAGustaf Alströmer
came out of, right?
- JDJordan Dearsley
Yeah.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
Yeah, exactly. We were late to a lot of meetings 'cause we were booking a lot of customer interviews, and we realized this was a problem, and it was hard to join meetings, so we just solved this-
- GAGustaf Alströmer
'Cause you had to go to Google Calendar-
- JDJordan Dearsley
Yes
- GAGustaf Alströmer
... uh, find the day, then open the link, then find the link, then click on the right link.
- JDJordan Dearsley
And then-
- NGNikhil Gupta
Which opens another webpage. Then you click to launch Zoom, which then opens, uh, finally the Zoom app, and then you click join into the meeting.
- GAGustaf Alströmer
So 10 clicks-
- NGNikhil Gupta
Something like that
- GAGustaf Alströmer
... like 12 times a day.
- JDJordan Dearsley
And then, and then you, like, fiddle with your microphone and all of that stuff.
- GAGustaf Alströmer
Yes.
- NGNikhil Gupta
Yes.
- JDJordan Dearsley
And not to mention, about 30% of people, uh, were late to meetings.
- GAGustaf Alströmer
Hmm.
- JDJordan Dearsley
Uh, at least a minute or two late to their meetings. And so we found very, very, you know, strong product market fit with one user, which was you-
- GAGustaf Alströmer
[laughs]
- JDJordan Dearsley
... uh, who paid-
- GAGustaf Alströmer
'Cause I had a lot of meetings during the day.
- JDJordan Dearsley
Yes, yeah, with your office hours and stuff. So, so it was about... I think you paid 20 bucks a month. Uh, I think we said it was 10 bucks, and then you were like, "No, it's gonna be 20 bucks a month," and then, then you paid us 20 bucks a month. And then you got your wife on it-
- GAGustaf Alströmer
Yeah
- JDJordan Dearsley
... and then our MRR was 40.
- GAGustaf Alströmer
Mm-hmm.
- JDJordan Dearsley
Um, and then we did an internal Bookface launch, and then our MRR was, like, $100, and then it-
- NGNikhil Gupta
Well, then actually we launched on Bookface without integrating Stripe at all-
- JDJordan Dearsley
Yes
- NGNikhil Gupta
... into the app. So because we just wanted to get it out-
- JDJordan Dearsley
Yeah
- 10:44 – 14:07
Walking Away From a Working Business
- GAGustaf Alströmer
it wasn't, uh... Was there anything that was, like, not as good with it? Or, like, why didn't it-- why didn't you stick to this idea? Like, Granola-
- JDJordan Dearsley
Yeah
- GAGustaf Alströmer
... there's a bunch of companies now that basically do this, that you had-
- NGNikhil Gupta
They do it really well. I mean, there's like... I think we knew-
- JDJordan Dearsley
Mm-hmm.
- NGNikhil Gupta
I don't know if you'd add something here.
- JDJordan Dearsley
Mm-hmm.
- NGNikhil Gupta
But, like, to me, it always felt like we knew how to build a business in our company here. Michael, like, would really push us, like Michael Seibel on, um, "Hey, talk to your users. Like, where are they actually using your notes?" Because most people don't use notes.
- GAGustaf Alströmer
Mm-hmm.
- NGNikhil Gupta
And we talked to people, and they realized that, um, there was wealth managers, doc- like nurses, doctors, like they were getting a ton of value.
- GAGustaf Alströmer
Because they take notes anyway.
- NGNikhil Gupta
They took notes after every meeting, and they, they look at notes. So in services industry, you just care a lot about, like, notes.
- GAGustaf Alströmer
Yes.
- NGNikhil Gupta
And we knew we could build businesses there, but I think at this point we were just burnt out.
- JDJordan Dearsley
Yeah.
- NGNikhil Gupta
Um, I don't know.
- JDJordan Dearsley
Mostly.
- NGNikhil Gupta
Mostly burnt out.
- JDJordan Dearsley
And at this point, like, it's not like a bad business. Like, we were half a million revenue at the time.
- GAGustaf Alströmer
Yep.
- JDJordan Dearsley
Uh, we, we had 10,000 paying, like, users. Like, it was, it was great. But I think-
- GAGustaf Alströmer
And you're living in Toronto still.
- JDJordan Dearsley
Yeah, living in Toronto.
- GAGustaf Alströmer
'Cause you basically were here for the batch and then moved back to Toronto to stay there.
- JDJordan Dearsley
Yeah. And it basically became honestly like a lifestyle kind of setup, and we were kinda like taking it easy and, and not... We, we didn't treat it as like a, "Oh, man, this is a generational opportunity. This is our chance to build something huge." We just kept like throwing spaghetti at the wall, and I don't think we just had the ambition to-
- NGNikhil Gupta
That was basically it. I think it just felt like-
- JDJordan Dearsley
Yeah
- NGNikhil Gupta
... like, is this gonna be the most important thing, one of the most important things in the next 10 years? Like-
- JDJordan Dearsley
And we were like, man, calendar app, like after four years of cal- like, like-
- GAGustaf Alströmer
This is basically end of '22, early '23.
- 14:07 – 17:56
Building an AI Therapist After a Breakup
- JDJordan Dearsley
Yeah.
- GAGustaf Alströmer
Smart. And then when did you build the therapy app? The... You built a voice AI therapy app that you would talk to.
- JDJordan Dearsley
Yeah.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
Yeah. So we were pivoting, yeah, for roughly about three months-
- NGNikhil Gupta
Yes
- JDJordan Dearsley
... I think. And then while Nikhil was away, uh, and, and I had just recently come out of a, a, a breakup a weekend, and I was just like super sad, so I just built this AI therapist, uh, to, to go on walks with every day.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
And I spent two hours a day walking with it, and then the rest of the day just like grinding on it to try to improve the latency and make it feel more natural. And I kinda just channeled that, uh, depression into obsession over like just trying to have this like human ex-
- GAGustaf Alströmer
Yeah
- JDJordan Dearsley
... like why doesn't it sound and feel like a person? Like-
- GAGustaf Alströmer
Was it good at giving you advice?
- JDJordan Dearsley
Yes.
- GAGustaf Alströmer
Or, or listen to you?
- JDJordan Dearsley
Yeah. Yeah. I remember one time I was talking to GPT-4, uh, and I had this long dialogue about my feelings and stuff like that, and it, and it was like, "You, you, you notice like you always talk about your feelings in the third person. Are you trying to distance yourself from them?" And I was like, "What the fuck?"
- GAGustaf Alströmer
Wow.
- JDJordan Dearsley
"Did a model just like diagnose me [laughs] or something?"
- GAGustaf Alströmer
That's pretty good for being that early.
- JDJordan Dearsley
And I was like, okay, this isn't-- like this is like a unique moment that could not have happened over, over chat that has now happened over voice.
- GAGustaf Alströmer
Mm-hmm.
- JDJordan Dearsley
And so the longer that we kept toying with it, we found one guy, our friend, and also angel investor. His name's Mo.
- GAGustaf Alströmer
Mm-hmm.
- JDJordan Dearsley
Uh, he-- I gave it to him, and he would talk to it like literally every day-
- GAGustaf Alströmer
Mm-hmm
- JDJordan Dearsley
... or like 12 times a day, just like spitballing ideas and stuff. So basically what we, we proved like product market fit for like ChatGPT voice mode that would later come in like two years.
- GAGustaf Alströmer
And what was the state of the models at the time when you were building this?
- JDJordan Dearsley
Really slow.
- GAGustaf Alströmer
Slow.
- JDJordan Dearsley
Super slow, super expensive.
- GAGustaf Alströmer
So the problem was it's expensive, and it's like the latency was not-
- 17:56 – 21:10
300 Slack Channels and No Marketing
- GAGustaf Alströmer
And then how'd it go from there? Like what happened the next six months?
- JDJordan Dearsley
People just came to us.
- GAGustaf Alströmer
Yeah.
- NGNikhil Gupta
Well, I remember also you, like, uh, I think this part is also really cool, uh, because you have the first customer-
- GAGustaf Alströmer
Yeah
- NGNikhil Gupta
... but it's not quite PMF yet. I mean, no one knows about you, right?
- GAGustaf Alströmer
Yeah. Mm-hmm.
- NGNikhil Gupta
Uh, you have like a, a powder, dry powder. So Jordan, like I remember scraped every YC company.
- JDJordan Dearsley
Mm-hmm.
- NGNikhil Gupta
Like I don't know how he did that, but like he had an... He was in contact with everyone-
- JDJordan Dearsley
Mm-hmm
- NGNikhil Gupta
... in YC who was building in voice.
- GAGustaf Alströmer
Yeah, there wasn't that many.
- NGNikhil Gupta
There wasn't that many. There was like 5, 10.
- JDJordan Dearsley
Yeah. And then as we started working with like a few more of them who had the same problem, and then three of them like died along the way just because like that's the nature of, of startups.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
It was mind-blowing.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
Just two years ago it was mind-blowing.
- GAGustaf Alströmer
Yeah, yeah.
- JDJordan Dearsley
People were like, " [gasps] You could... That just responded? Like is that a person?" As we started working with more and more like small startups, and honestly, it was like all over the place. So we had like agencies and like random people out in like Middle America and like r- you know, random tech companies. And so it was just a hodgepodge of like no focus. And so at, at one point it just grew and grew and grew to the point where we had about 300 Slack channels for support.
- GAGustaf Alströmer
Wow.
- JDJordan Dearsley
And not discriminated by like how much they were spending either.
- GAGustaf Alströmer
Just all of them.
- JDJordan Dearsley
Just give... And, and we would, within five minutes of someone giving us a request, we would ship the feature to production. And, and that's roughly... We, we, we did not do any marketing.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
We did not do any sales. We didn't do anything. We just built like, uh, a need that existed in the market.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
And, and again, this was aligned with our original conviction, right?
- GAGustaf Alströmer
Yeah.
- 21:10 – 24:34
Why One Founder Stopped Coding
- JDJordan Dearsley
But it was really hard-
- NGNikhil Gupta
Oh
- JDJordan Dearsley
... because like up until this point, like the way that we determined the value that we were providing was always like what were we shipping.
- NGNikhil Gupta
Sure.
- JDJordan Dearsley
And to change my mindset from, okay, I'm building all the time, to like, I'm just like sending a bunch of cold emails-
- NGNikhil Gupta
Yeah
- JDJordan Dearsley
... and making zero progress, like that was a really tough time. Just being really shit at something for so long-
- NGNikhil Gupta
Mm-hmm
- JDJordan Dearsley
... and showing no progress.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
But then eventually over time we started to master that, like, oh, somebody comes in and they're starting to spend money. Like I should email them and get on a call with them and present some options and send them a contract-
- NGNikhil Gupta
Yeah
- JDJordan Dearsley
... and get that signed. So we started to build this like kinda motion of, uh, uh, building contracts. Um, and then eventually I, I couldn't ever crack like the outbound sale and like going out and like finding new customers. They always came to us.
- NGNikhil Gupta
Mm-hmm.
- JDJordan Dearsley
Uh, and so I ended up getting a sales advisor, and that was like instrumental in like just teaching me like proper sales process and-
- NGNikhil Gupta
Mm-hmm
- JDJordan Dearsley
... like prospecting and like how to make sure that you qualify for pain and don't waste time on people who are gonna waste your time, uh, and how you present commercials in a nice way and, and all that. And what I'll add is like we didn't know this at the time.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
Now we do. Uh, this market is like the Milky Way. It is enormous. It's like there's about 3 trillion minutes annually that are business to consumer.
- GAGustaf Alströmer
How many, how many of them do you serve?
- JDJordan Dearsley
Uh, today we serve, uh, 0.0134%.
- GAGustaf Alströmer
Wow.
- JDJordan Dearsley
And what I'll say is like-
- GAGustaf Alströmer
And you're still a pretty large company, like by Y-
- JDJordan Dearsley
Yes
- GAGustaf Alströmer
... by YC standards.
- JDJordan Dearsley
And what I will say is like some of the largest telecom sort of companies in the world have like sub 1% of that volume as well.
- GAGustaf Alströmer
Wow.
- JDJordan Dearsley
Um, like names that you would think of. And so it's like an impossibly difficult diffusion problem-
- GAGustaf Alströmer
Mm-hmm
- 24:34 – 27:44
Why the AI Labs Didn’t Replace Vapi
- GAGustaf Alströmer
and then they-
- JDJordan Dearsley
And then we're like, "Okay, cool. We'll, we'll set a reminder."
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
Six months later they come back.
- GAGustaf Alströmer
Yeah.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
Um, and, and I think Michael Seibel, we had a chat with him about this, and 'cause this came up, like, like I was like-
- NGNikhil Gupta
So many times.
- JDJordan Dearsley
Yeah
- GAGustaf Alströmer
Yeah
- JDJordan Dearsley
... like this, this, like, dilemma of like, oh, the labs. And then we'd go out to fundraise and they'd be like, "Oh, the labs," and like, it was just like the constant FUD.
- GAGustaf Alströmer
Mm-hmm.
- JDJordan Dearsley
We're trying to hi- hire people, same thing.
- GAGustaf Alströmer
Yeah.
- JDJordan Dearsley
Um, and, and the way Michael framed it was super helpful. He was like, "There's two generational problems in AI. One is AGI, and the other is just, like, deploying AGI in the enterprise. Both are equally difficult-
- GAGustaf Alströmer
Mm-hmm
- JDJordan Dearsley
... and all of the labs have their A players on that first problem-
- GAGustaf Alströmer
Yes
- JDJordan Dearsley
... and their B players on the second problem. You have your A players on the second problem. So that's the advantage.
- GAGustaf Alströmer
It's a very good framing, and people underestimate how large this enterprise portion is and how s- how long it'll take.
- JDJordan Dearsley
Oh.
- GAGustaf Alströmer
Like, there is no way this will happen in five years or maybe even 10 years.
- JDJordan Dearsley
No.
- GAGustaf Alströmer
This will happen over, like-
- JDJordan Dearsley
20 years
- GAGustaf Alströmer
... our generation, basically.
- NGNikhil Gupta
Yes, yes, yes.
- GAGustaf Alströmer
Yeah.
- NGNikhil Gupta
It'll take a long time.
- GAGustaf Alströmer
Yeah. Tell me about the company right now. Like, like, s- give me an update on where you guys are and, and sort of like where's the sight set on? Like, where are you gonna go next?
- 27:44 – 32:19
How They Handle Co-Founder Conflict
- GAGustaf Alströmer
Cofounders relationships are hard, and you guys seem to build a strong, really strong foundation-
- JDJordan Dearsley
Mm
- GAGustaf Alströmer
... uh, from knowing you guys for a couple years. Like, can you just, like, practically how do you do it? Like, how do you interact with each other? People watching this might not know, but cofounder breakups is, like, top reason why these companies actually fall apart-
- JDJordan Dearsley
Mm
- GAGustaf Alströmer
... uh, or die, because fo- cofounders aren't getting along.
- JDJordan Dearsley
Yeah.
- GAGustaf Alströmer
And what have you learned? Are there specific practical advice to give to people that are watching this running their own companies?
- JDJordan Dearsley
Uh, one, like, that is the most important thing, period. Like-
- GAGustaf Alströmer
Mm
- JDJordan Dearsley
... full stop. Um, if that is not in well-functioning order, none of this other stuff matters. Uh, so me and Nikhil, uh, pretty early on we invested in getting, uh, coaches for this kinda stuff. So we got, uh, interpersonal dynamics coach that helped us, like, actually learn how to communicate with each other, uh, and work through the principles of, uh, what's called non-violent communication.
- GAGustaf Alströmer
Nice.
- JDJordan Dearsley
So there's a great little book on that. It's like our Bible we give to every employee when they show up.
- GAGustaf Alströmer
I have it.
- NGNikhil Gupta
Yeah.
- JDJordan Dearsley
Yeah.
- NGNikhil Gupta
Yeah, yeah, yeah.
- JDJordan Dearsley
It's incredible. It's... and it's, it's so simple. Um, and so through that we kind of built up the skills to be able to work really well together.
- GAGustaf Alströmer
What are some examples on how you practically do it?
- NGNikhil Gupta
So one sentence I think we both say often is like, "Can you understand me?" Because this often happens in discussions, at least I noticed with, like, other people who are not, uh, pilled on N- NVC, where you'll be arguing about something, but it's not quite, um... You don't know what you're arguing about even sometimes.
- GAGustaf Alströmer
Mm-hmm.
- NGNikhil Gupta
Or you're arguing, like, a completely different thing. You kinda keep moving along.
- GAGustaf Alströmer
Mm.
- NGNikhil Gupta
It's like, and then taking that moment to, like, if you're, if it feels like we're circling, like, can you just, like, pause and understand me-
- GAGustaf Alströmer
Mm-hmm
- NGNikhil Gupta
... is a such a common thing in the company-
- GAGustaf Alströmer
Yeah
- NGNikhil Gupta
... for us. Uh, I don't know what other examples come to you.
- JDJordan Dearsley
Yeah. And I guess, like, a bit, a bit more viscerally it's like-
- NGNikhil Gupta
Yeah
- JDJordan Dearsley
... when we're talking and disagreeing, you can sort of feel, like, when things are getting elevated-
Episode duration: 32:19
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