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"Our engineers stopped coding a year ago"

20VC with Harry Stebbings · 1m · transcribed 17h ago
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Section Insights

# 0:00

Introduction to AI Engineering

How has the engineering approach changed over the past year?

The engineering team has transitioned from traditional coding to leveraging a large number of AI engineers to achieve scalable results.

  • The company has shifted focus from coding to AI-driven solutions.
  • A significant number of AI engineers are employed to enhance scalability.
# 0:13

Setting the Stage for Discussion

What is the context of the discussion with Mateo?

The discussion is informal and aims to explore unique insights from Mateo, a notable founder in the hardware industry.

  • The conversation is unfiltered and off-the-cuff.
  • Mateo is recognized as an impressive figure in hardware.
# 0:27

Mateo's Business Success

What achievements has Mateo's company accomplished?

Mateo's company has reached multi-billion dollar valuations, maintains low churn rates, and has expanded globally, including in China.

  • The company has achieved significant financial success.
  • It has a strong global presence and low customer turnover.
# 0:40

Product Quality and Business Standards

What is Mateo's perspective on product quality in relation to brand success?

Mateo emphasizes that a strong brand cannot succeed without a quality product, and he maintains high standards in business.

  • Product quality is crucial for brand success.
  • Mateo is demanding and uncompromising in business.

Transcript

0:00 Well, our engineers stopped coding around a year ago. What they have is hundreds of AI engineers and that is how we can achieve what we are achieving at scale. How much do you spend on cru a month? >> in the hot seats today we have Mateo Frances Cetty. What a fantastic surname. The joys of doing a second show with someone is you get to ask questions that no one else can answer. That's what happened today. We have a totally off-the- cuff, very unfiltered discussion with probably one of the most impressive founders in hardware, having scaled the business to multi-billion dollar valuations, singledigit churn rates, incredible global businesses, now open even in China. This is one of the most unfiltered versions of Matteo and Eight Sleep that you have seen yet.

0:41 >> Great brand with a shitty product goes nowhere. I'm extremely demanding. I'm a weirdo and so I can be a husband on one side, but business-wise, no mercy. Sometimes people say, "Oh, I'm at the final stage with entropic and eight sleep." And to me, that is a really bad red flag. There is no way that these two jobs are any way similar. Our revenue per employees is way higher than Apple. Kids that are being born now will never work, at least for money.

Summary

Mateo Frances Cetty discusses the evolution of his company, Eight Sleep, emphasizing the importance of innovation and high standards in product development. He shares insights into scaling a hardware business to a multi-billion dollar valuation and reflects on the future of work and technology.

- Eight Sleep has transitioned to relying on AI engineers rather than traditional coding.
- Mateo emphasizes the importance of product quality, stating that a great brand cannot succeed with a poor product.
- He has a demanding approach to business, balancing personal and professional roles.
- The company boasts a single-digit churn rate and impressive revenue per employee, surpassing even Apple.
- Mateo warns against comparing unrelated job roles, highlighting the unique challenges of his industry.
- He predicts that future generations may not work for money, suggesting a shift in societal values.

Questions Answered