[HN Gopher] Kai Fu Lee's New AI Company: Yi-Open Source
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       Kai Fu Lee's New AI Company: Yi-Open Source
        
       Author : mark_l_watson
       Score  : 140 points
       Date   : 2023-11-06 03:37 UTC (17 hours ago)
        
 (HTM) web link (www.01.ai)
 (TXT) w3m dump (www.01.ai)
        
       | mark_l_watson wrote:
       | I read the first paragraph of a paywalled article that said that
       | the company has a $1B evaluation in less than a year.
       | 
       | I have always been a fan - I bought his PhD Thesis to read about
       | 40 years ago. Kai Fu Lee has had an interesting career!
        
         | throwaway4good wrote:
         | The valuation is mentioned this TechCrunch article as well:
         | 
         | https://techcrunch.com/2023/11/05/valued-at-1b-kai-fu-lees-l...
         | 
         | Valued at $1B, Kai-Fu Lee's LLM startup unveils open source
         | model
         | 
         | ...
         | 
         | The startup's ability to commence model training quickly is no
         | doubt an outcome of its smooth fundraising, which is critical
         | to securing top-tier talent and AI processors. While declining
         | to disclose how much 01.AI has raised, Lee said it's valued at
         | $1 billion after receiving financing from Sinovation Ventures,
         | Alibaba Cloud and other undisclosed investors.
        
         | whitten wrote:
         | What was his thesis about ?
        
           | mark_l_watson wrote:
           | The thesis described the Sphinx speech to text system. It
           | ran, if I remember correctly, on a few VAX minicomputers.
           | 
           | In the early part of my career (first 20 years) I
           | concentrated on tackling very difficult problems wherever I
           | worked, accepting some failures and some successes. Reading
           | his thesis was important to me because it gave me a feeling
           | for trying to solve hard problems in a low resource
           | environment (although I did have a Lisp Machine, access to a
           | Connection Machine and a Butterfly Machine - so not terribly
           | resource poor!)
           | 
           | For what it's worth: I am in my 70s, still waste deep in AI
           | tech, and I still look for a few people to follow to get
           | inspired.
        
             | ycdavidsmith wrote:
             | You inspire me.
        
       | echelon wrote:
       | What is up with all of these {number}.ai companies?
       | 
       | 01.ai
       | 
       | 11.ai
       | 
       | https://twelvelabs.io (couldn't get 12.ai, huh?)
       | 
       | There are about a half dozen more.
       | 
       | I'm laughing at the domain squatter that bought 900.ai, 99999.ai,
       | and 1234567.ai
       | 
       | This has to be the worst possible thing to name your company.
        
         | growt wrote:
         | Before the Internet companies would name themselves
         | ,,1a-locksmith" to appear first in the yellow pages in book
         | form. Maybe we have gone full cycle?
        
         | antupis wrote:
         | 420.ai, 69.ai or 666.ai are much worse.
        
           | staunton wrote:
           | Shh, Elon might get some ideas...
        
             | simion314 wrote:
             | made me laugh, thinking that next Elon domain would be
             | xxx.xxx to max the X.
        
           | dheera wrote:
           | In Chinese, 666 is a very good number.
           | 
           | 6 sounds like the character Liu  which technically means
           | something like smooth flowing but is used to compliment
           | someone's well-practiced skills.
           | 
           | "666" is often said when someone does something impressive
           | and smoothly. Like if someone double-flips a pancake and it
           | lands perfectly, that's the kind of situation you'd say "666"
           | to compliment them.
        
             | CaptainFever wrote:
             | On the other hand, don't use 444.ai
        
           | Yoric wrote:
           | Are you telling me that there isn't already a 69.ai working
           | on deepfake porns? I'd be surprised.
        
         | throwaway4good wrote:
         | Number domain names seem to be popular in countries that don't
         | use the latin alphabet - ie China or Japan.
         | 
         | 01.ai is pretty cool name and domain ... for sure beats grok or
         | calling something open when it is actually closed.
        
           | mmahemoff wrote:
           | China and Japan also have numerical stock tickers, e.g.
           | Sony's ticker 6758 instead of e.g. SONY.
           | 
           | I guess numeric IDs like that were a consequence of early
           | tech making it hard to deal with more complex character sets
           | ... maybe the association lives on in those cultures?
           | 
           | There's also deeper associations with numbers like 8
           | representing luck, 4 meaning death etc.
        
           | timfsu wrote:
           | Another reason number domains are popular in Asia is that
           | they are much easier to type, especially historically on
           | mobile
        
         | astrange wrote:
         | Number domains are relatively common in China because you can
         | easily make Chinese language puns with them.
         | 
         | (I don't know what this one means, but it probably is one.)
        
           | alisonatwork wrote:
           | I suppose you can pronounce 01 as Ling Yi  (zero one), but
           | also Ling Yi  (another), so 01.ai could be read as "another
           | AI".
           | 
           | Seem like the Chinese name of the company is Ling Yi Mo Wu
           | which could translate as "Zero One All Things" - not a bad
           | name for a tech company.
        
             | astrange wrote:
             | Clearly it's either named after the Peter Thiel book or the
             | song from Love Live.
        
         | gwervc wrote:
         | Look at the name of the company: Yi. Seems congruent then to
         | use 1, pronunced yi in Chinese, as a domain name.
        
       | TekMol wrote:
       | How can an open source company have a valuation of $1B?
       | 
       | How do open source businesses work at all? I sometimes read about
       | companies like these, with huge valuations and then the next day
       | I read about some open source developer asking for donations
       | because their project, which powers half of the internet [1], is
       | not making him enough to pay for food. What makes the difference?
       | 
       | Over the years, I wrote some tools for my own use, which are way
       | better than their commercial counterparts. If I would spend a few
       | weeks to polish one of them and open source it, it would probably
       | gain widespread adoption. But how could I then build that into a
       | business?
       | 
       | [1] Relevant XKCD: https://xkcd.com/2347/
        
         | lgeorget wrote:
         | Not all projects are "business-able" I think. A nice tool with
         | an identifiable user base, a nice UI, etc. is easier to market
         | than a NTP library even if the latter has more probability to
         | be critical and to get installed in billions of devices.
        
         | blackoil wrote:
         | Very common way: Go Open Core, sell hosting and plugins and
         | proprietary engines etc and if that's not enough do a coup and
         | change license to prevent competition from providing same
         | services.
        
         | flarion wrote:
         | like any other startup. time, energy and passion. define
         | problem/pain. talk loads w potential customers. ask them if
         | they would pay for it. excel in customer success. find ways to
         | scale and be found :)
        
           | upupupandaway wrote:
           | Or... or... s/he could convince a VC that the startup would
           | multiply the potential opportunity in the space the tools
           | cover by 10x and get a really fat check for generating the
           | right hype with the right crowd.
           | 
           | /s
        
             | flarion wrote:
             | doesn't work w/o traction.
        
         | bman_kg wrote:
         | the visual you linked makes perfect sense, wonder how many
         | companies are like that...
        
         | imjonse wrote:
         | In this case being open source is a nice feature, but not the
         | main one the business is built around. If you have terabytes of
         | data and thousands of GPUs to train on plus the talent to work
         | on it you have a clear advantage over many other possible
         | competitors, even if you give them the source. This is not
         | nearly comparable to building yet another open source todo app
         | or analytics dashboard in JS.
        
         | throwaway4good wrote:
         | It is the price equity is being raised at.
         | 
         | OpenAI is at 80B.
        
         | pierrefermat1 wrote:
         | You could spend sometime looking into the business models of
         | Elasticsearch/Docker. Albeit not successful in some eyes as
         | they are exactly profit printing, but they have indeed raised
         | enough to be unicorn status.
        
         | thibo_skabgia wrote:
         | Listed OSS business models here if useful:
         | https://github.com/anhtho-lago/awesome-opensource-company#bu...
         | 
         | Also, the comments here were interesting:
         | https://news.ycombinator.com/item?id=37682684
        
       | Roark66 wrote:
       | Is it going to be as open as the (not-at-all)OpenAI?
        
         | victor9000 wrote:
         | less
        
       | Conscat wrote:
       | > We predict that AI 2.0 will create a platform opportunity ten
       | times larger than the mobile internet, rewriting all software and
       | user interfaces.
       | 
       | I was a bit interested until I read this. If this claim is to be
       | believed, then the company appears to be entirely out of touch
       | with reality, and it makes claims like outperforming llama-70b
       | seem even more incredulous.
        
         | throwaway4736 wrote:
         | Matt Levine once described this very well, although he did it
         | when referring to Adam Neumann and WeWork. I'm paraphrasing,
         | but there are a subset of people who are able to consistently
         | and accurately to great success exploit a bubble in the VC
         | world, by dint of exactly knowing what to say and of being able
         | to get the meeting in the first place.
         | 
         | Lee being able to credibly sell bullshit like the quoted claim
         | is a feature, not a bug. It's somewhat irrelevant if he
         | actually believes it.
        
           | textcortex wrote:
           | Yep, agreed. Also somehow this AI 2.0 thing he is mentioning
           | reminds me of web 3.0 bs. Baseless and delusional.
        
           | upupupandaway wrote:
           | At first I was angry about these grifters because they suck
           | opportunities out of the market, leaving legitimate startups
           | behind. But knowing what I know now, that VCs are also
           | grifters (looking at a16z and its pump and dump crypto win) I
           | have started rooting for the "bad guys". So may Lee attract
           | all VC money in the world to promptly set it on fire like
           | Adam did.
        
             | DevX101 wrote:
             | Curious, what was the a16z crypto dump play? I saw them
             | pump for a few years, until the market tanked.
        
         | jstummbillig wrote:
         | What do you find offence with? Hip speech and yawn-2.0-s aside,
         | I find the claim entirely defendable, given, of course, a
         | certain set of assumptions in this very new and uncertain
         | space.
        
           | upupupandaway wrote:
           | How is it defendable? How do you defend 10x? What about 11x?
           | Why not 3.5x? This is complete bullshit.
        
             | jstummbillig wrote:
             | > How is it defendable? How do you defend 10x?
             | 
             | Uncertainty. Given incomplete information it is common
             | practice to make assumptions about things to give us some
             | starting point from which to act. In this context a round
             | integer value pretty much implies: They are estimating, and
             | they might be completely off.
             | 
             | I guess you could say, "Instead of making assumptions with
             | uncertainty, let's not assume anything", but that makes
             | progress in new and uncertain areas really hard.
        
               | Barrin92 wrote:
               | It's a common and bad practice because quantitative
               | language belongs in the domain of _risk_ , not
               | uncertainty. Two very different things. Risk is the world
               | of stationary laws and empirical data. Fluid markets,
               | mortality stats, that kind of thing. The "10x AI
               | productivity boost" is about as real as the "10x
               | engineer", that's to say, the PR department made it up.
               | It's just vibes, but it's a symptom of a culture that
               | unduly reveres anything that sounds "mathy".
        
               | YetAnotherNick wrote:
               | I think it's pedantic argument. Obviously he meant that
               | his bet is the future is something and willing to work
               | for it. No need to scratch your head. 10x is not maths
               | 10x and no one thinks it is literally 10.0x.
        
           | ben_w wrote:
           | I'm entirely ready to believe AI will soon write all apps and
           | UI. I don't see such rewrites being a x10 market opportunity,
           | given there's already "an app for that" even when there
           | shouldn't be.
        
             | logicchains wrote:
             | He doesn't mean AI will rewrite the apps, he means the
             | apps/their UIs will be rewritten to use natural language
             | input.
        
               | RobotToaster wrote:
               | I thought he meant that more interfaces will be designed
               | to be used by AI.
        
               | jprete wrote:
               | If three of you have such substantially different
               | interpretations of the text, then it's almost certainly
               | bullshit.
        
               | dboreham wrote:
               | > He doesn't mean AI will rewrite the apps
               | 
               | <puts lollipop away>
        
             | echelon wrote:
             | He means that a world that requires engineers for most
             | things vs. a world that doesn't is a very different world.
             | 
             | If your average joe on the street can automate their own
             | random business task, that's a very different world than
             | the one we have today.
             | 
             | This is totally a 10x opportunity if it pans out. Maybe
             | even bigger.
             | 
             | If it pans out.
        
         | T-A wrote:
         | Kai-Fu Lee is (among other things) a SciFi author. Check out
         | "AI 2041" to see what he has in mind:
         | 
         | https://www.space.com/artificial-intelligence-anthology-book...
        
         | m3kw9 wrote:
         | If they were serious they would have a specific number rather
         | than exactly 10. This is for investment attraction
        
       | lhl wrote:
       | Just an FYI,the Yi license is a custom license an is not what I
       | would describe an "open license":
       | https://huggingface.co/01-ai/Yi-34B/blob/main/LICENSE
       | 
       | It's non-commercial only: "If you plan to use the Yi Series
       | Models and Derivatives for Commercial Purposes, you should
       | contact the Licensor in advance" and "Your use of the Yi Series
       | Models must comply with the Laws and Regulations as well as
       | applicable legal requirements of other countries/regions, and
       | respect social ethics and moral standards," which is all fine and
       | good, but as defined in the terms, "Laws and Regulations" refers
       | to the laws and administrative regulations of the mainland of the
       | People's Republic of China.
       | 
       | I tend to refer to this type of license as NC/China and I don't
       | even bother poking around with those. I'll wait for the next
       | Mistral or other Apache 2.0 model to come out.
       | 
       | Note, for coding, DeepSeek Coder 33B is already stronger and
       | released under a less restrictive license.
        
         | ttflee wrote:
         | The model card for Yi-34B included benchmark scores in several
         | Chinese-oriented evaluation sets, CMMLU, C-eval and GAOKAO.
        
         | omneity wrote:
         | Worth noting they include synthetic data and training other
         | models as derivatives:
         | 
         | > "Derivatives" refers to all modifications to Yi Series
         | Models, work based on Yi Series Models, or any other models
         | created or initialized by transferring the weights, parameters,
         | activations, or output patterns of Yi Series Models to other
         | models to achieve similar performance, including but not
         | limited to methods that require using intermediate data
         | representations or generating synthetic data based on Yi Series
         | Models to train other models.
         | 
         | This model does not seem fit at all for public use except maybe
         | for some research. I suspect they have customers lined up or
         | are currently prospecting/in talks, and this release is purely
         | for marketing purposes.
        
           | ronsor wrote:
           | I'm not sure how enforceable that would even be. Since the
           | output of these models can't be copyrighted, you can't apply
           | a license to them either.
           | 
           | The question of whether the weights can be copyrighted is
           | separate, but I also honestly don't think so. I think all
           | these model weight licenses are an emperor's new clothes
           | scenario, where everyone is too afraid to call out the
           | obvious.
        
         | RobotToaster wrote:
         | Yeah, getting tired of licences like this and stability AI
         | claiming to be open source when they clearly aren't.
        
       | menshiki wrote:
       | Kai Fu Lee has so many terrible takes. Some things he says are
       | borderline delusional.
        
         | OscarTheGrinch wrote:
         | His book AI Superpowers is frontloaded with a lot of "Ra Ra
         | mighty China inevitably will win the AI competition" stuff. I
         | just felt sad for him if AI nationalism is his genuine world
         | view, and not just some party line he has to parrot to appease
         | the commissars.
        
           | krageon wrote:
           | Let's not discount folks just because they are patriotic. A
           | lot of people (including ones you probably do respect) fall
           | into that pit - it's like religion, just something people
           | also do. It doesn't change anything else they achieve.
           | 
           | That said, the license on the AI they produce is not open.
           | Calling it open is dumb and for that a certain measure of
           | disrespect is warranted.
        
       | Misaka-Chen wrote:
       | What is ai2.0? I have never heard this notion.
        
         | upupupandaway wrote:
         | An attempt to coin a sticky term that will be used to group
         | companies in a way that it's easier to sell the "opportunity"
         | to gullible (or greedy) VCs.
        
         | visarga wrote:
         | Maybe it's LLMs as opposed to CNNs, LSTMs and other bespoke
         | models, pre-2020 AI.
        
         | re-thc wrote:
         | 3.0 by now.
        
         | vincnetas wrote:
         | What happened to WEB 3.0? Are we there yet?
         | 
         | https://en.wikipedia.org/wiki/Web3
        
           | mark_l_watson wrote:
           | Painfully, years ago I wrote a book with Web 3.0 in the
           | title. For me that meant semantic web and linked data.
           | 
           | I am enjoying reading this entire thread. For AI skeptics: I
           | am not trying to talk you into anything you don't believe,
           | but just as an experiment, whenever you think about LLMs,
           | appreciate how well they generalize past things they have
           | been trained on. Peter Norvig and a friend of his recently
           | write an article arguing that LLMs probably meet our
           | traditional criteria for AGI.
           | 
           | EDIT: I am aware of the recent paper
           | https://arxiv.org/abs/2311.00871 that argues that LLMs have
           | limited generalization capabilities, but I don't agree.
        
       | upupupandaway wrote:
       | This sounds more like WeAI.
        
       | wodenokoto wrote:
       | It seems like everyone knows Kai Fu Lee. Is his name something
       | one should recognize if you know Andrew Ng and Yang LeCun?
        
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