BEYOND THE SCALING LAWS

Summary from the TLDR Founders newsletter

A new era of innovation is emerging as the AI industry hits the limits of traditional "bigger is better" scaling. Techniques like real-time reasoning, novel architectures beyond transformers, and embodied AI are opening fresh paths to more robust, generalizable intelligence. Meanwhile, VCs are pivoting focus from bits to atoms, seeing untapped potential in AI-driven disruption in giant industries like energy and logistics. Seed and Series A startups pioneering this shift are attracting the lion's share of funding. As the world enters 2025 with new leadership and a revitalized M&A market, expect a surge of activity from investors who spot these seismic changes.