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Gaurav Sharma - The Future of AI Won’t Be Centralized
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Gaurav Sharma - The Future of AI Won’t Be Centralized

Secret3 Secret3 June 06, 2025 3 min read
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Gaurav Sharma - The Future of AI Won’t Be Centralized
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1. Emphasizing AI’s Transformative Power

Gaurav emphasized the critical role of AI in the evolutionary journey of businesses, stating that just as companies in the early 2000s had to adapt to the internet to thrive, today's businesses must embrace AI. He asserted that those who resist this transformation will likely face downfall, drawing parallels to the fate of Blockbuster against Netflix. His clear message was, "Companies adopting AI will flourish; those resisting will perish."

2. Revolutionizing Scale with Fewer Resources

Gaurav highlighted the drastic change in the resources required to build billion-dollar businesses. Whereas multiple thousands of employees were once necessary, advancements in AI mean that companies today can achieve the same scale with fewer than 100 developers. By citing successful examples such as Midjourney, he showcased how innovative approaches could radically alter conventional business metrics.

3. Exponential Growth in AI Research Papers

The speaker pointed out a staggering growth in the number of research papers related to AI and machine learning, from only 42 a few years ago to 28,400 today. Gaurav illustrated that this rapid surge reflects a burgeoning interest and investment in AI technology, indicating that a significant proportion (90%) of current software development is AI-centered. This trend underscores the urgency for businesses to leverage AI in their operations.

4. The Critical Role of Computation in AI Adoption

Gaurav conveyed that computation is foundational for artificial intelligence. He explained how advancements in GPU capabilities have accelerated model training times from months to just a day. However, he expressed concern about the widening gap between the rapid adoption of AI and the relatively slow growth of computing resources, noting that this 2.5x delta presents a challenge for future scalability.

5. The Flywheel Effect in AI Development

According to Gaurav, a flywheel effect is emerging in AI, suggesting that as the costs of experimentation decrease, companies will generate more ideas leading to successful businesses, consequently driving further demand for computing resources. He likened this phenomenon to the evolution of CPU demand over the last two decades, implying that we are at the beginning of similar growth trajectories within the AI sector.

6. Centralized Systems Are Becoming Obsolete

Gaurav made a strong case against centralized cloud computing, arguing that the current system hampers builders who are attempting to innovate at speed. He explained the difficulties startups face in acquiring high-quality GPUs and highlighted the inefficiencies and costs associated with traditional data centers. His assertion was that these centralized systems are not designed for the next generation of builders, who need agility and reduced costs in their operations.

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