SO MANY THINGS need to go right just so you can watch a TikTok! | E2215
Episode
75 min
Read time
2 min
Topics
Productivity, Startups, Sales & Revenue
AI-Generated Summary
Key Takeaways
- ✓Context Engineering for Cost Control: Newbird AI reduces inference costs and prevents hallucinations by isolating specific problem areas before querying LLMs, similar to preparing focused questions before a doctor visit rather than describing every possible symptom. This approach delivers 90% reduction in meantime to incident response and resolution.
- ✓IT Operations Complexity: Delivering a single TikTok video requires multiple infrastructure layers including content storage with quality control software, data integrity verification, content distribution networks, and edge caching to prevent backend server overload. Each layer generates massive log data requiring AI analysis that humans cannot process at scale.
- ✓Autonomous vs Consultative AI Deployment: Most customers initially deploy Hawkeye in consultation mode where it creates remediation reports and code changes but requires human approval before execution. Low-risk actions like feature flag toggles receive autonomous approval, while critical changes need human oversight, allowing gradual trust building.
- ✓Teacher Leverage Through AI: SubjectAI enables teachers to serve three times more students by automating grading, lesson planning, and feedback while keeping teacher platform usage under one hour daily. Students spend three hours daily on the platform with 96% completing at least one course, demonstrating high engagement through short-form videos and AI-generated games.
- ✓B2B Education Sales Cycles: SubjectAI pivoted from direct-to-consumer AP courses to district sales in 2021, initially struggling with multi-year sales cycles before optimizing to under six months by 2024. District sales provide more equitable access to poverty-stricken areas compared to affluent-only direct-to-consumer models while creating stickier revenue.
What It Covers
This Week in Startups explores applied AI through three segments: Newbird AI's agentic system for IT operations that reduces incident response time by 90%, SubjectAI's classroom tools serving students three hours daily, and a 2019 Alexander Wang interview predicting AI's trajectory.
Key Questions Answered
- •Context Engineering for Cost Control: Newbird AI reduces inference costs and prevents hallucinations by isolating specific problem areas before querying LLMs, similar to preparing focused questions before a doctor visit rather than describing every possible symptom. This approach delivers 90% reduction in meantime to incident response and resolution.
- •IT Operations Complexity: Delivering a single TikTok video requires multiple infrastructure layers including content storage with quality control software, data integrity verification, content distribution networks, and edge caching to prevent backend server overload. Each layer generates massive log data requiring AI analysis that humans cannot process at scale.
- •Autonomous vs Consultative AI Deployment: Most customers initially deploy Hawkeye in consultation mode where it creates remediation reports and code changes but requires human approval before execution. Low-risk actions like feature flag toggles receive autonomous approval, while critical changes need human oversight, allowing gradual trust building.
- •Teacher Leverage Through AI: SubjectAI enables teachers to serve three times more students by automating grading, lesson planning, and feedback while keeping teacher platform usage under one hour daily. Students spend three hours daily on the platform with 96% completing at least one course, demonstrating high engagement through short-form videos and AI-generated games.
- •B2B Education Sales Cycles: SubjectAI pivoted from direct-to-consumer AP courses to district sales in 2021, initially struggling with multi-year sales cycles before optimizing to under six months by 2024. District sales provide more equitable access to poverty-stricken areas compared to affluent-only direct-to-consumer models while creating stickier revenue.
Notable Moment
Alexander Wang predicted in 2019 that AI regulation would not be tricky, comparing it to airplane autopilot precedent. Five years later, his forecast proved accurate as self-driving car regulations remain relatively permissive, with Chinese companies even training in The US due to lax oversight.
Episode Transcript
You know, what engineers do is troubleshoot, fix problems. They create problems, and then they fix the problems they created. There's a lot of interest now in how to use AI, especially gen AI, and how that can ease the burden of IT operations. The moment you get on a phone and you're looking at a TikTok video, I mean, the number of layers that are involved to deliver that, not withstanding the physical infrastructure to deliver the audio and video content, but the infrastructure software and physical infrastructure that it takes to store the media, it's a very complex environment and people want more of this faster. Just for fun, can you walk me through some of the software that goes into making a TikTok appear on my phone, for example? The videos have to be stored somewhere, so there's some quality control. So there are software associated with that. And then when the video gets edited and uploaded and stored, you wanna make sure that there's no data loss, no integrity compromise on the video. And then the distribution aspect of it, and then there's edge caching. You don't want somebody looking at the video to hit the back end server each time, and so there's what's called content distribution networks involved. This Week in Startups is brought to you by Uber. Bad data equals bad AI. Your AI is only as good as the data it learns from. Uber? That's right. Uber AI solutions now works with enterprises around the world to source, label, evaluate, and scale real world high quality data for every industry everywhere so that you can focus on building the next big thing. High quality data equals smarter and faster AI. Uber.com/twist. Perspective AI. Surveys, they never capture what customers are really thinking. That's why we use Perspective AI, real insights straight from your customers. And the first two months are on us. Just go to getperspective.ai/twist. And CLA, innovation takes balance. Our CPAs, consultants, and wealth advisors can help you get from start up to where you want to end up. Get started now at claconnect.com/tech. Hey, everybody. Welcome back to Twist. And if you are in The United States, tomorrow is Thanksgiving, so I presume you are listening to us on the plane, from the car, wherever you are. We're glad you're spending the day before the great holiday with us. Now on the show today, New Bern, a Twist five hundred company that is building what it calls an agentic AI SRE. What does that mean? Well, it means they're applying modern AI technology to helping companies ensure that their cloud setup actually works. As the cloud becomes more complicated, there's more wires and tubes to connect, and this company wants to make sure that you never get them crossed. Then Jason talks to SubjectAI. It is a really cool company in the ed tech space. Like some others, it's helping students have more personalized educational tools and also helping …
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“Most customers initially deploy Hawkeye in consultation mode where it creates remediation reports and code changes but requires human approval before execution.”
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“Newbird AI's agentic system for IT operations that reduces incident response time by 90%”
“SubjectAI's classroom tools serving students three hours daily”
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