Latent Space: The AI Engineer Podcast
00:29:48 · Zach Lloyd, S1
For a small team, and it really makes the most sense for a company that's like, I wanna I wanna put in place the right infrastructure so that as models and agents continue to change, we have a system that we're building upon. [00:30:00] S1: There's a lot to go on here. The the the one follow one follow-up question, and then I'm gonna have you plug your AI e talks and just generally where to where to follow-up with you. If you... What is the most steel man criticism of setting up all this? Like, when you encounter criticism or pushback, what should people know as, like, here here is, like, what people are running into? [00:30:24] S2: I'll answer this in, like, there's a certain class of customer where I don't think it makes sense to, like, go on to this particular thing and that's like [00:30:32] S1: Yeah. And beyond the size thing. [00:30:34] S2: Yeah. Where we have challenges right now are companies with very, very bespoke infrastructure or companies with, like, are are kind of not a good fit customer for this, for instance, would be like Uber or Ramp. Like, they're building their own thing. They have very large internal developer teams. But apart from the size thing, I'm thinking like... I mean, there's definitely like the... For some people, they should... It's just gonna be more economical to just use the subs, like, for small... Very small teams, but that comes back to the size Actually...
00:30:34 · Zach Lloyd, S1
[00:30:34] S2: Yeah. Where we have challenges right now are companies with very, very bespoke infrastructure or companies with, like, are are kind of not a good fit customer for this, for instance, would be like Uber or Ramp. Like, they're building their own thing. They have very large internal developer teams. But apart from the size thing, I'm thinking like... I mean, there's definitely like the... For some people, they should... It's just gonna be more economical to just use the subs, like, for small... Very small teams, but that comes back to the size Actually... [00:31:06] S1: Yeah. I don't wanna actually omit the subs stuff because I think a lot of a lot of people go straight to API... Pay by API, and that is between five to 50 times more expensive than just getting a whole bunch of subs. Do people do that? Is is that, like, so against terms of service that, like, just don't bother or, like... [00:31:28] S2: Talk to... Like, a lot of small companies we talk to where they're like, oh, this system seems amazing. We want this, but we're on these, like, collection of $200 subs that we're rotating through. Like, are rotating, [00:31:43] S1: like, 17 different subs. Right?
00:31:43 · S1, Zach Lloyd
[00:31:43] S1: like, 17 different subs. Right? [00:31:45] S2: And then you can't imagine that's allowed, but I I don't... The truth is I just don't really know. But, like, they they are, and it's it's like and it makes... Like, honestly, it's like if you can do that, that's gonna be the cheapest way. But you you you do lose a whole bunch of other benefits if you do that, and it's not a scalable thing. And if your company scales to a certain point, they're... You know, you're definitely not gonna be allowed to do that, but it's like, it it makes sense. [00:32:10] S1: Yeah. I'm just, you know, I'm just saying like, it's... That... That's the extent of subsidy. Like, you get... For like a $200 plan, you get 8,000 of API. Right? [00:32:18] S2: Yeah. It's crazy. [00:32:19] S1: That's not that's not money to sneeze at. [00:32:21] S2: No. No. And it's like, it's one of the... I I mean, just from like a business perspective, it's one of the reasons that, you know, I I don't wanna be in like the pure coding agent business because you you just can't [00:32:34] S1: build Right?
00:32:34 · S1, Zach Lloyd
[00:32:34] S1: build Right? [00:32:34] S2: Good luck fighting. You can't you can't build a competitive coding agent on top of a thing that costs so much more money, and, like, that's just the reality. I mean, Cursor was brilliant. They did it, and then I think that they had a perfect exit and became a model lab because I think they fully realized the economics of it. And so, yeah, the the cool thing about Warp. Factory is it's like we're actually not we're not trying to pitch like a token reselling product. We're trying to pitch basically an, you know, a coding agent optimization platform and a coding agent, like, productivity platform. So we were... We're not in that game with this product, which is a strength. And, like, that game is... I know there's still a few independent coding agents out there. I don't know how they're gonna how they're gonna do it. [00:33:20] S1: It's basically Cognition and OpenCode. That's it. Oh, and and Factory, of course. Let's wrap up with, like, a little plug for your talk. People come... Will come see you, and we'll we'll livestream it and all all that. But give us a general arc of the the sort of series that you've been developing and where where you where you're going to talk about next.
00:33:20 · S1, Zach Lloyd
[00:33:20] S1: It's basically Cognition and OpenCode. That's it. Oh, and and Factory, of course. Let's wrap up with, like, a little plug for your talk. People come... Will come see you, and we'll we'll livestream it and all all that. But give us a general arc of the the sort of series that you've been developing and where where you where you're going to talk about next. [00:33:37] S2: What the talk's gonna focus on is what it looks like to be an engineer in this world of increasing factory engineering, and, like, what what are what are your roles? What's your job gonna be? What are the two types of engineering, product engineering, factory engineering? And then what is this new discipline, if you wanna use the word, of factory engineering actually look like? What are the tools? How do you, as an engineer, build the right skills so that you're engineering the system that builds the software and not just building the software directly? [00:34:07] S1: That is a perfect recap and overview of if people wanna talk to you, where should they find you? If you're hiring, what are you hiring for? Anything that's a good call to action. [00:34:17] S2: Yeah. So come check out warp.dev. So most stuff is there. We're hiring engineers. We're hiring on our go to market team. We're hiring on the data team. We're hiring a designer. So hiring up for a whole bunch of roles. If you're interested in, like, my my musings on factories, I I put out a lot of content on my Twitter now. So Zach Lloyd tweets. So come come follow that, and I'll I'll keep sharing how I'm thinking about it.
00:34:17 · Zach Lloyd, S1
[00:34:17] S2: Yeah. So come check out warp.dev. So most stuff is there. We're hiring engineers. We're hiring on our go to market team. We're hiring on the data team. We're hiring a designer. So hiring up for a whole bunch of roles. If you're interested in, like, my my musings on factories, I I put out a lot of content on my Twitter now. So Zach Lloyd tweets. So come come follow that, and I'll I'll keep sharing how I'm thinking about it. [00:34:39] S1: Will do. Will do. Alright. Thanks so much for your time. Cool. [00:34:42] S2: Cool. Thanks for having me.