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Y Combinator's guide to being an AI-native company: tokenmaxx, don't headcountmaxx

Business Insider·Henry Chandonnet·29 days ago
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Y Combinator partner Diana Hu said that maximizing token usage will be "the critical shift." Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images In Y Combinator's "Startup School," partner Diana Hu advocated for startups to begin tokenmaxxing . "Maximizing token usage, not head count, will be the critical shift," Hu said. Tokens measure spending on AI compute. Hu said founders need to be willing to run an "uncomfortably high API bill." Tokenmaxxing isn't just a trend; it's bona fide advice from Silicon Valley's leading startup accelerator. In a new episode of Y Combinator's "Startup School," partner Diana Hu instructs founders how to build an AI-native company. Hu was a YC-backed founder herself, building augmented reality company Escher Reality, which was acquired by Niantic . "Maximizing token usage, not head count, will be the critical shift," Hu said. "The best companies will be the ones that are tokenmaxxing." Tokens measure the cost of AI computing.…

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