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The Voice AI Platform Powering a Billion Calls a Year

Vapi (YC W21) is a platform for building and deploying voice AI agents. Today, it serves about a billion calls a year and works with companies like Amazon, Uber, and Intuit. In this episode of Founder Firesides, co-founders Jordan Dearsley and Nikhil Gupta sit down with YC’s Gustaf Alströmer to talk about years of pivots and burnout, the AI therapist prototype that became Vapi, and why OpenAI’s voice launch almost made them pivot again. They explain why turning powerful models into reliable voice agents is a business of its own, what it took to learn enterprise sales, and how coaching helped them build a stronger cofounder relationship. https://vapi.ai 00:00 — A Billion Voice AI Calls a Year 03:06 — Betting on Better, Faster Models 06:49 — Building a One-Click Zoom Button 10:44 — Walking Away From a Working Business 14:07 — Building an AI Therapist After a Breakup 17:56 — 300 Slack Channels and No Marketing 21:10 — Why One Founder Stopped Coding 24:34 — Why the AI Labs Didn’t Replace Vapi 27:44 — How They Handle Co-Founder Conflict Apply to Y Combinator: https://www.ycombinator.com/apply Work at a startup: https://www.ycombinator.com/jobs

Gustaf AlströmerhostJordan DearsleyguestNikhil Guptaguest
Sep 25, 202632mWatch on YouTube ↗

EVERY SPOKEN WORD

  1. 0:00 – 3:06

    A Billion Voice AI Calls a Year

    1. GA

      [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?

    2. JD

      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.

    3. GA

      What would you say is the biggest misconception about voice AI right now?

    4. NG

      Probably the fact that, um, people don't realize how hard it is-

    5. GA

      Mm-hmm

    6. NG

      ... uh, to get a reproduction-

    7. GA

      Yeah

    8. NG

      ... 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-

    9. GA

      Mm-hmm

    10. NG

      ... that's low latency, again, at the cost that they need. It's following all the guardrails-

    11. GA

      Mm-hmm

    12. NG

      ... that are relevant to them.

    13. GA

      Mm-hmm.

    14. NG

      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.

    15. JD

      Yeah. And, and I would say, like, voice as opposed to chat is a very unconstrained interface.

    16. NG

      Yes.

    17. JD

      You can say or do anything, and customers expect that it'll say or do anything back-

    18. NG

      Yeah

    19. JD

      ... on- once they, once they get how it works.

    20. NG

      Yeah.

    21. JD

      So there's a whole fundamental different set of challenges under extremely low latency-

    22. NG

      High, low, low latency

    23. JD

      ... uh, conditions.

    24. GA

      It takes a human 10 years to learn how to-

    25. JD

      Yes

    26. GA

      ... speak properly, and you're supposed to do it out of the box.

    27. JD

      And then on top of that, you're putting it in front of real customers.

    28. NG

      Yeah.

    29. GA

      Yeah.

    30. JD

      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.

  2. 3:06 – 6:49

    Betting on Better, Faster Models

    1. JD

      you don't actually know.

    2. NG

      Yeah. And we were trying to then, like, boil it down, like, to something irrefutable.

    3. GA

      Yeah.

    4. NG

      Uh, and like, I think Jordan now has a good framework around it.

    5. GA

      Mm-hmm.

    6. NG

      Like, what's something that, like, in 10 years just feels, like, inevitable?

    7. GA

      Yeah.

    8. JD

      Mm-hmm.

    9. NG

      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?

    10. GA

      Mm-hmm.

    11. NG

      Like, will, will it be fast enough at the intelligence, fast enough? It was like, "Well, yeah. What the hell?" Like, it's like-

    12. GA

      Yeah

    13. NG

      ... 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.

    14. GA

      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-

    15. NG

      [laughs]

    16. GA

      ... "Wow, it kinda works."

    17. NG

      Yes.

    18. GA

      Like, they can, you can s- say something with my voice.

    19. NG

      Yeah.

    20. JD

      Yeah.

    21. GA

      And then in the background, you were building this big company that basically-

    22. NG

      Yeah

    23. GA

      ... would be able to answer the phone with low la- latency.

    24. NG

      Everywhere. Yes.

    25. GA

      Yeah.

    26. NG

      Exactly.

    27. JD

      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-

    28. GA

      Mm-hmm

    29. JD

      ... 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."

    30. GA

      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.

  3. 6:49 – 10:44

    Building a One-Click Zoom Button

    1. GA

      came out of, right?

    2. JD

      Yeah.

    3. NG

      Yeah.

    4. JD

      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-

    5. GA

      'Cause you had to go to Google Calendar-

    6. JD

      Yes

    7. GA

      ... uh, find the day, then open the link, then find the link, then click on the right link.

    8. JD

      And then-

    9. NG

      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.

    10. GA

      So 10 clicks-

    11. NG

      Something like that

    12. GA

      ... like 12 times a day.

    13. JD

      And then, and then you, like, fiddle with your microphone and all of that stuff.

    14. GA

      Yes.

    15. NG

      Yes.

    16. JD

      And not to mention, about 30% of people, uh, were late to meetings.

    17. GA

      Hmm.

    18. JD

      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-

    19. GA

      [laughs]

    20. JD

      ... uh, who paid-

    21. GA

      'Cause I had a lot of meetings during the day.

    22. JD

      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-

    23. GA

      Yeah

    24. JD

      ... and then our MRR was 40.

    25. GA

      Mm-hmm.

    26. JD

      Um, and then we did an internal Bookface launch, and then our MRR was, like, $100, and then it-

    27. NG

      Well, then actually we launched on Bookface without integrating Stripe at all-

    28. JD

      Yes

    29. NG

      ... into the app. So because we just wanted to get it out-

    30. JD

      Yeah

  4. 10:44 – 14:07

    Walking Away From a Working Business

    1. GA

      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-

    2. JD

      Yeah

    3. GA

      ... there's a bunch of companies now that basically do this, that you had-

    4. NG

      They do it really well. I mean, there's like... I think we knew-

    5. JD

      Mm-hmm.

    6. NG

      I don't know if you'd add something here.

    7. JD

      Mm-hmm.

    8. NG

      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.

    9. GA

      Mm-hmm.

    10. NG

      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.

    11. GA

      Because they take notes anyway.

    12. NG

      They took notes after every meeting, and they, they look at notes. So in services industry, you just care a lot about, like, notes.

    13. GA

      Yes.

    14. NG

      And we knew we could build businesses there, but I think at this point we were just burnt out.

    15. JD

      Yeah.

    16. NG

      Um, I don't know.

    17. JD

      Mostly.

    18. NG

      Mostly burnt out.

    19. JD

      And at this point, like, it's not like a bad business. Like, we were half a million revenue at the time.

    20. GA

      Yep.

    21. JD

      Uh, we, we had 10,000 paying, like, users. Like, it was, it was great. But I think-

    22. GA

      And you're living in Toronto still.

    23. JD

      Yeah, living in Toronto.

    24. GA

      'Cause you basically were here for the batch and then moved back to Toronto to stay there.

    25. JD

      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-

    26. NG

      That was basically it. I think it just felt like-

    27. JD

      Yeah

    28. NG

      ... like, is this gonna be the most important thing, one of the most important things in the next 10 years? Like-

    29. JD

      And we were like, man, calendar app, like after four years of cal- like, like-

    30. GA

      This is basically end of '22, early '23.

  5. 14:07 – 17:56

    Building an AI Therapist After a Breakup

    1. JD

      Yeah.

    2. GA

      Smart. And then when did you build the therapy app? The... You built a voice AI therapy app that you would talk to.

    3. JD

      Yeah.

    4. NG

      Yeah.

    5. JD

      Yeah. So we were pivoting, yeah, for roughly about three months-

    6. NG

      Yes

    7. JD

      ... 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.

    8. GA

      Yeah.

    9. JD

      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-

    10. GA

      Yeah

    11. JD

      ... like why doesn't it sound and feel like a person? Like-

    12. GA

      Was it good at giving you advice?

    13. JD

      Yes.

    14. GA

      Or, or listen to you?

    15. JD

      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?"

    16. GA

      Wow.

    17. JD

      "Did a model just like diagnose me [laughs] or something?"

    18. GA

      That's pretty good for being that early.

    19. JD

      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.

    20. GA

      Mm-hmm.

    21. JD

      And so the longer that we kept toying with it, we found one guy, our friend, and also angel investor. His name's Mo.

    22. GA

      Mm-hmm.

    23. JD

      Uh, he-- I gave it to him, and he would talk to it like literally every day-

    24. GA

      Mm-hmm

    25. JD

      ... 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.

    26. GA

      And what was the state of the models at the time when you were building this?

    27. JD

      Really slow.

    28. GA

      Slow.

    29. JD

      Super slow, super expensive.

    30. GA

      So the problem was it's expensive, and it's like the latency was not-

  6. 17:56 – 21:10

    300 Slack Channels and No Marketing

    1. GA

      And then how'd it go from there? Like what happened the next six months?

    2. JD

      People just came to us.

    3. GA

      Yeah.

    4. NG

      Well, I remember also you, like, uh, I think this part is also really cool, uh, because you have the first customer-

    5. GA

      Yeah

    6. NG

      ... but it's not quite PMF yet. I mean, no one knows about you, right?

    7. GA

      Yeah. Mm-hmm.

    8. NG

      Uh, you have like a, a powder, dry powder. So Jordan, like I remember scraped every YC company.

    9. JD

      Mm-hmm.

    10. NG

      Like I don't know how he did that, but like he had an... He was in contact with everyone-

    11. JD

      Mm-hmm

    12. NG

      ... in YC who was building in voice.

    13. GA

      Yeah, there wasn't that many.

    14. NG

      There wasn't that many. There was like 5, 10.

    15. JD

      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.

    16. GA

      Yeah.

    17. JD

      It was mind-blowing.

    18. GA

      Yeah.

    19. JD

      Just two years ago it was mind-blowing.

    20. GA

      Yeah, yeah.

    21. JD

      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.

    22. GA

      Wow.

    23. JD

      And not discriminated by like how much they were spending either.

    24. GA

      Just all of them.

    25. JD

      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.

    26. GA

      Yeah.

    27. JD

      We did not do any sales. We didn't do anything. We just built like, uh, a need that existed in the market.

    28. GA

      Yeah.

    29. JD

      And, and again, this was aligned with our original conviction, right?

    30. GA

      Yeah.

  7. 21:10 – 24:34

    Why One Founder Stopped Coding

    1. JD

      But it was really hard-

    2. NG

      Oh

    3. JD

      ... 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.

    4. NG

      Sure.

    5. JD

      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-

    6. NG

      Yeah

    7. JD

      ... and making zero progress, like that was a really tough time. Just being really shit at something for so long-

    8. NG

      Mm-hmm

    9. JD

      ... and showing no progress.

    10. NG

      Yeah.

    11. JD

      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-

    12. NG

      Yeah

    13. JD

      ... 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.

    14. NG

      Mm-hmm.

    15. JD

      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-

    16. NG

      Mm-hmm

    17. JD

      ... 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.

    18. GA

      Yeah.

    19. JD

      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.

    20. GA

      How many, how many of them do you serve?

    21. JD

      Uh, today we serve, uh, 0.0134%.

    22. GA

      Wow.

    23. JD

      And what I'll say is like-

    24. GA

      And you're still a pretty large company, like by Y-

    25. JD

      Yes

    26. GA

      ... by YC standards.

    27. JD

      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.

    28. GA

      Wow.

    29. JD

      Um, like names that you would think of. And so it's like an impossibly difficult diffusion problem-

    30. GA

      Mm-hmm

  8. 24:34 – 27:44

    Why the AI Labs Didn’t Replace Vapi

    1. GA

      and then they-

    2. JD

      And then we're like, "Okay, cool. We'll, we'll set a reminder."

    3. GA

      Yeah.

    4. JD

      Six months later they come back.

    5. GA

      Yeah.

    6. NG

      Yeah.

    7. JD

      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-

    8. NG

      So many times.

    9. JD

      Yeah

    10. GA

      Yeah

    11. JD

      ... 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.

    12. GA

      Mm-hmm.

    13. JD

      We're trying to hi- hire people, same thing.

    14. GA

      Yeah.

    15. JD

      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-

    16. GA

      Mm-hmm

    17. JD

      ... and all of the labs have their A players on that first problem-

    18. GA

      Yes

    19. JD

      ... and their B players on the second problem. You have your A players on the second problem. So that's the advantage.

    20. GA

      It's a very good framing, and people underestimate how large this enterprise portion is and how s- how long it'll take.

    21. JD

      Oh.

    22. GA

      Like, there is no way this will happen in five years or maybe even 10 years.

    23. JD

      No.

    24. GA

      This will happen over, like-

    25. JD

      20 years

    26. GA

      ... our generation, basically.

    27. NG

      Yes, yes, yes.

    28. GA

      Yeah.

    29. NG

      It'll take a long time.

    30. GA

      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?

  9. 27:44 – 32:19

    How They Handle Co-Founder Conflict

    1. GA

      Cofounders relationships are hard, and you guys seem to build a strong, really strong foundation-

    2. JD

      Mm

    3. GA

      ... 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-

    4. JD

      Mm

    5. GA

      ... uh, or die, because fo- cofounders aren't getting along.

    6. JD

      Yeah.

    7. GA

      And what have you learned? Are there specific practical advice to give to people that are watching this running their own companies?

    8. JD

      Uh, one, like, that is the most important thing, period. Like-

    9. GA

      Mm

    10. JD

      ... 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.

    11. GA

      Nice.

    12. JD

      So there's a great little book on that. It's like our Bible we give to every employee when they show up.

    13. GA

      I have it.

    14. NG

      Yeah.

    15. JD

      Yeah.

    16. NG

      Yeah, yeah, yeah.

    17. JD

      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.

    18. GA

      What are some examples on how you practically do it?

    19. NG

      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.

    20. GA

      Mm-hmm.

    21. NG

      Or you're arguing, like, a completely different thing. You kinda keep moving along.

    22. GA

      Mm.

    23. NG

      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-

    24. GA

      Mm-hmm

    25. NG

      ... is a such a common thing in the company-

    26. GA

      Yeah

    27. NG

      ... for us. Uh, I don't know what other examples come to you.

    28. JD

      Yeah. And I guess, like, a bit, a bit more viscerally it's like-

    29. NG

      Yeah

    30. JD

      ... 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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