KEITH RABOIS' NEW RULES OF VERTICAL AI

Summary from the TLDR Founders newsletter

Frontier models will continue to improve. Vertical AI that does the job end-to-end gains from improving models. Use model routing to optimize workflows - long term, model mixes and open-weights can recapture margin. Let labs supply intelligence, but own the data loops, private data, corner cases, and last-mile liability. Earn data by having a primary product that customers pay for, and learn what labs can't by doing work previously done by humans.