
No Priors Ep. 35 | With Sarah Guo and Elad Gil
Sarah Guo (host), Elad Gil (host)
In this episode of No Priors, featuring Sarah Guo and Elad Gil, No Priors Ep. 35 | With Sarah Guo and Elad Gil explores how Fine-Tuning, RAG, and Open Source Will 10X AI’s Impact Hosts Sarah Guo and Elad Gil outline six levers—multimodality, long context, customization, memory, recursion, and model orchestration—that can make today’s AI systems 10–100x more useful without waiting for dramatically bigger base models.
How Fine-Tuning, RAG, and Open Source Will 10X AI’s Impact
Hosts Sarah Guo and Elad Gil outline six levers—multimodality, long context, customization, memory, recursion, and model orchestration—that can make today’s AI systems 10–100x more useful without waiting for dramatically bigger base models.
They dive into model customization via fine-tuning, RLHF/RLAIF, and RAG, explaining why OpenAI’s fine-tuning push and Google’s AI-feedback research are pivotal for scaling quality and lowering costs.
The conversation then turns to Meta’s strategic sponsorship of open-source models like LLaMA, drawing analogies to past infrastructure plays such as MySQL and Linux, and what that means for the broader ecosystem.
Finally, they explore how generative AI could catalyze a new wave of consumer apps and social networks, and advise founders to pursue the “easy markets” and near-term value rather than overly hard markets at this stage.
Key Takeaways
You can 10–100x usefulness of existing models with system design, not just bigger models.
Multimodality, longer context windows, customization, memory, recursion, and routing between specialized models can radically improve performance on real use cases using GPT-3. ...
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Fine-tuning and RLHF are proven to unlock massive step-changes in usability.
ChatGPT’s success came from fine-tuning GPT‑3. ...
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RAG is critical for trustworthy, up-to-date, and cost-effective applications.
By retrieving from a controlled corpus (e. ...
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AI-generated feedback (RLAIF) can substitute for expensive human raters in many domains.
Google’s work shows AI can often evaluate AI outputs as well as humans, enabling cheaper and faster iterative improvement of models, especially when domain-specific models are already more accurate than human experts.
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Meta’s open-source push is a strategic bet to avoid lock-in and shape the stack.
By sponsoring strong open models like LLaMA 2, Meta reduces dependence on external labs, catalyzes a developer ecosystem, and externalizes some R&D cost—similar in spirit to prior open-source infrastructure plays.
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Generative AI creates a real opening for new social and consumer products.
New modalities—AI-native content creation, agents, and personalized feeds—may enable fresh consumer experiences beyond “Twitter but different,” although incumbents like Meta and X are positioned to benefit heavily.
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Founders should favor ‘easy’ high-value problems now over hard markets.
Given the abundance of low-hanging fruit, they advise focusing on tractable, valuable use cases (even if technically challenging) rather than grinding on very hard markets before the platform wave is saturated.
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Notable Quotes
“You don't need to wait for GPT‑7; you can 10x or even 100x use cases with existing models today.”
— Elad Gil
“Fine-tuning really just means you create a lot of feedback… and it created a dramatic step function in the utility of GPT‑3.5.”
— Elad Gil
“I think of the core driver [for RAG] as trustworthiness—citation, control of information source.”
— Sarah Guo
“Instead of having to hire an army of people to fine-tune these models, you can actually have an AI help fine-tune this model.”
— Elad Gil
“It’s no GPU before product/market fit. I think that’s the takeaway.”
— Elad Gil
Questions Answered in This Episode
How should teams decide when to use fine-tuning versus RAG for a given enterprise application?
Hosts Sarah Guo and Elad Gil outline six levers—multimodality, long context, customization, memory, recursion, and model orchestration—that can make today’s AI systems 10–100x more useful without waiting for dramatically bigger base models.
Get the full analysis with uListen AI
What governance and validation processes are needed if we increasingly rely on AI-generated feedback (RLAIF) instead of humans?
They dive into model customization via fine-tuning, RLHF/RLAIF, and RAG, explaining why OpenAI’s fine-tuning push and Google’s AI-feedback research are pivotal for scaling quality and lowering costs.
Get the full analysis with uListen AI
In what ways could Meta’s open-source strategy reshape power dynamics between big AI labs, cloud providers, and startups?
The conversation then turns to Meta’s strategic sponsorship of open-source models like LLaMA, drawing analogies to past infrastructure plays such as MySQL and Linux, and what that means for the broader ecosystem.
Get the full analysis with uListen AI
What would a truly ‘gen-AI native’ social network look like, beyond just adding AI features to existing platforms?
Finally, they explore how generative AI could catalyze a new wave of consumer apps and social networks, and advise founders to pursue the “easy markets” and near-term value rather than overly hard markets at this stage.
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For founders, how do you practically distinguish between an ‘easy high-value’ AI opportunity and a deceptively hard market that will stall progress?
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Transcript Preview
(music plays) Hi, No Priors listeners. Time for a host-only episode. This week, Elade and I talk about the path to better model quality from here, the potential of fine-tuning, RLHF, RLAIF, RAG and retrieval systems generally, Meta's sponsorship of the open source model ecosystem, and finally, the beginning of a new set of consumer applications and social networks. Thanks for tuning in. So one thing everybody is thinking about, uh, is what it takes to get to 10X or 100X better AI systems. Like, I-I think it'd be useful just to sort of enumerate the- the elements to sort of step function better. Elade, what do you think?
Yeah. You know, it's interesting because there's- there's a few different aspects of that that people always talk about. There's scalability of datasets and compute and parameters and all these things. But the reality is, I think a lot of people believe that in order to 10X or even 100X use cases and usages for AI, outside of that there's things that could just be done on existing models today. So you don't need to wait for GPT-7 or whatever. You could start with GPT-4 or GPT-3.5 and add these things. And I think they are kinda bucketed into five or six areas. Number one is multimodality. So that means being able to use text or voice or images or videos, both input and output. So you should be able to talk to a model, type to it, upload an image and ask about the image (laughs) , and then it could output anything from code to a short video for you. Um, second is long-context windows. So basically when you prompt a model, you basically are feeding it data or commands or other things, and everybody realizes that you need longer and longer and longer context windows. So Magic, for example, is doing that for code. You know, you should be able to dump in an entire code repo into a coding model instead of having to do it piecemeal. Um, third, which we're gonna talk about today, is model customization. So that's things like fine-tuning, something known as RAG, r-, uh, there's data cleaning, there's labeling, there's a bunch of stuff that just makes models work better for you. Uh, fourth is some form of memory, so the AI actually remembers what it's doing. Uh, fifth is some form of recursion, so looping back and reusing models. And then sixth, which is related, is potentially a bunch of small models that are very specialized being orchestrated by a central model or sort of AI router that says, "Well, for this, for this specific task or use case, I'm gonna route the prompt or the data or the output into this other model that's doing this other thing," which is basically how the human brain works, right? You, uh, process visual information through your visual cortex, but then you use other parts of your brain to make decisions, right? And so it's very similar to what evolutions were decided was an optimal approach. But I think it's really interesting because I think many people in the field know that these five or six things are absolutely coming, and they- they can dramatically improve the performance on existing systems. Again, 10X, 100X better for certain things. And so it's more just a matter of when, right? It's not really an if anymore. A bunch of people are working on different aspects of this, and, you know, I think it's all coming really fast. And so what... you know, there's sort of two things that came out in the last week or two that are really relevant to this, it'd be great to get your thoughts on. One is OpenAI announcing that they're not gonna allow people to fine-tune models, and the second is Google, where they looked at human-generated feedback versus AI-generated feedback for models and sort of fine-tuning models that way. So I don't know if you wanna tell people a bit more about what happened with OpenAI and why that's important.
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