The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Cohere Founder on How Cohere Compete with OpenAI and Anthropic $BNs | Why Counties Should Fund Their Own Models & the Need for Model Sovereignty | How Sam Altman Has Done a Disservice to AI with Nick Frosst

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Sep 1, 2025
Nick Frosst, co-founder of Cohere and AI researcher, dives into the challenges and opportunities in AI development. He critiques the reliance on benchmarks and discusses how Cohere competes with giants like OpenAI. Frosst argues for countries funding their own AI models, emphasizing model sovereignty, and shares insightful reflections from his time at Google Brain with Geoffrey Hinton. He also addresses misconceptions about AI threats and the need for more relevant data over sheer computational power.
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INSIGHT

Talent Value And Retention Realities

  • AI talent commands high pay because skilled researchers add enormous value.
  • Big-money hires can be volatile, and high pay doesn't guarantee retention.
ANECDOTE

Training With Scraps Of GPUs

  • Cohere began training models using fragmented GPUs stitched across data centers to save cost.
  • That early engineering proved you can train with small resources, though it's much slower than renting large clusters.
ADVICE

Compete By Focusing On ROI

  • Stay singularly focused on a customer segment to compete with deeper-funded rivals.
  • Optimize for ROI and production deployment, not headline model size or consumer growth.
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