Poolside CEO says most companies shouldn’t build foundation models

2 min read At the HumanX AI Conference, Poolside CEO Jason Warner advised companies to focus on AI applications rather than building foundation models. He emphasized that intelligence is as crucial as electricity and warned against creating models just to attract VC funding. Poolside is pursuing AGI through software and prioritizing defense and government AI before launching consumer products. Warner believes that only a few players will dominate foundation models, making application-layer AI the smarter approach in the evolving AI landscape. March 11, 2025 10:35 Poolside CEO says most companies shouldn’t build foundation models

Key Highlights

AGI Ambitions – Poolside is “literally” chasing artificial general intelligence through software.
Focus on Applications – Warner warns against building foundation models just to attract VC funding.
Competitive Edge – Companies should integrate foundation models into products, not rely on them as standalone offerings.
Hard Problems First – Poolside is tackling defense and government AI before launching consumer apps.

Why It Matters

🚀 Foundation Model Reality – Only a few players will dominate, making application-layer AI more viable.
🔍 Strategic Shift – The AI race is shifting from model-building to real-world implementation.
💡 Poolside’s Bet – By focusing on high-stakes industries, Poolside aims to differentiate itself in the crowded AI space.

With AGI as the end goal, is Poolside’s approach the smarter play in AI’s evolving landscape?

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