inside look at how Perplexity builds product—which to me feels like what the future of product development will look like for many companies:AI-first: They’ve been asking AI questions about every step of the company-building process, including “How do I launch a product?” Employees are encouraged to ask AI before bothering colleagues.Organized like slime mold: They optimize for minimizing coordination costs by parallelizing as much of each project as possible.Small teams: Their typical team is two to three people. Their AI-generated (highly rated) podcast was built and is run by just one person.Few managers: They hire self-driven ICs and actively avoid hiring people who are strongest at guiding other people’s work.A prediction for the future: Johnny said, “If I had to guess, technical PMs or engineers with product taste will become the most valuable people at a company over time.”

Typical projects we work on only have one or two people on it. The hardest projects have three or four people, max. For example, our podcast is built by one person end to end. He’s a brand designer, but he does audio engineering and he’s doing all kinds of research to figure out how to build the most interactive and interesting podcast. I don’t think a PM has stepped into that process at any point.

We leverage product management most when there’s a really difficult decision that branches into many directions, and for more involved projects.

The hardest, and most important, part of the PM’s job is having taste around use cases. With AI, there are way too many possible use cases that you could work on. So the PM has to step in and make a branching qualitative decision based on the data, user research, and so on.

a big problem with AI is how you prioritize between more productivity-based use cases versus the engaging chatbot-type use cases.

we look foremost for flexibility and initiative. The ability to build constructively in a limited-resource environment (potentially having to wear several hats) is the most important to us.

We look for strong ICs with clear quantitative impacts on users rather than within their company. If I see the terms “Agile expert” or “scrum master” in the resume, it’s probably not going to be a great fit.

My goal is to structure teams around minimizing “coordination headwind,” as described by Alex Komoroske in this deck on seeing organizations as slime mold. The rough idea is that coordination costs (caused by uncertainty and disagreements) increase with scale, and adding managers doesn’t improve things. People’s incentives become misaligned. People tend to lie to their manager, who lies to their manager. And if you want to talk to someone in another part of the org, you have to go up two levels and down two levels, asking everyone along the way.

Instead, what you want to do is keep the overall goals aligned, and parallelize projects that point toward this goal by sharing reusable guides and processes.

Perplexity has existed for less than two years, and things are changing so quickly in AI that it’s hard to commit beyond that. We create quarterly plans. Within quarters, we try to keep plans stable within a product roadmap. The roadmap has a few large projects that everyone is aware of, along with small tasks that we shift around as priorities change.

Each week we have a kickoff meeting where everyone sets high-level expectations for their week. We have a culture of setting 75% weekly goals: everyone identifies their top priority for the week and tries to hit 75% of that by the end of the week. Just a few bullet points to make sure priorities are clear during the week.

All objectives are measurable, either in terms of quantifiable thresholds or Boolean “was X completed or not.” Our objectives are very aggressive, and often at the end of the quarter we only end up completing 70% in one direction or another. The remaining 30% helps identify gaps in prioritization and staffing.

At the beginning of each project, there is a quick kickoff for alignment, and afterward, iteration occurs in an asynchronous fashion, without constraints or review processes. When individuals feel ready for feedback on designs, implementation, or final product, they share it in Slack, and other members of the team give honest and constructive feedback. Iteration happens organically as needed, and the product doesn’t get launched until it gains internal traction via dogfooding.

all teams share common top-level metrics while A/B testing within their layer of the stack. Because the product can shift so quickly, we want to avoid political issues where anyone’s identity is bound to any given component of the product.

We’ve found that when teams don’t have a PM, team members take on the PM responsibilities, like adjusting scope, making user-facing decisions, and trusting their own taste.

What’s your primary tool for task management, and bug tracking?Linear. For AI products, the line between tasks, bugs, and projects becomes blurred, but we’ve found many concepts in Linear, like Leads, Triage, Sizing, etc., to be extremely important. A favorite feature of mine is auto-archiving—if a task hasn’t been mentioned in a while, chances are it’s not actually important.The primary tool we use to store sources of truth like roadmaps and milestone planning is Notion. We use Notion during development for design docs and RFCs, and afterward for documentation, postmortems, and historical records. Putting thoughts on paper (documenting chain-of-thought) leads to much clearer decision-making, and makes it easier to align async and avoid meetings.Unwrap.ai is a tool we’ve also recently introduced to consolidate, document, and quantify qualitative feedback. Because of the nature of AI, many issues are not always deterministic enough to classify as bugs. Unwrap groups individual pieces of feedback into more concrete themes and areas of improvement.

High-level objectives and directions come top-down, but a large amount of new ideas are floated bottom-up. We believe strongly that engineering and design should have ownership over ideas and details, especially for an AI product where the constraints are not known until ideas are turned into code and mock-ups.

Big challenges today revolve around scaling from our current size to the next level, both on the hiring side and in execution and planning. We don’t want to lose our core identity of working in a very flat and collaborative environment. Even small decisions, like how to organize Slack and Linear, can be tough to scale. Trying to stay transparent and scale the number of channels and projects without causing notifications to explode is something we’re currently trying to figure out.

There are four signs your idea has legs:People pay you money: Several people start to pay for your product, ideally people you don’t have a direct connection toContinued usage: People continue to use your prototype product, even if it’s hackyStrong emotion: You’re hearing hatred for the incumbents (i.e. pain) or a deep and strong emotional reaction to your idea (i.e. pull)Cold inbound interest: You’re seeing cold inbound interest in your product

Every prosumer collaboration product, including Figma, Notion, Coda, Airtable, Miro, and Slack, spent three to four years wandering in the dark until they stumbled on something that clicked.

Oh ElonWell, look, if I were the newly hired chief executive officer of a social media company, and if the directors and shareholders who brought me in as CEO had told me that my main mission was to turn around the company’s precarious financial situation by improving our position with advertisers, and if I spent my first few weeks reassuring advertisers and rebuilding relationships and talking up our site’s unique audience and powerful engagement, and then one day my head of software engineering came to me and said “hey boss, too many people were too engaged with too many posts, so I had to limit everyone’s ability to view posts on our site, just FYI,” I would … probably … fire ... him?

I mean I suppose I might ask questions like “Is this because of some technological limitation on our system? Is it because you were monkeying with the code without understanding it? Is it because you tried to stop people from reading the site without logging in, 3 and messed up and stopped them from reading the site even when they logged in? Is it because you fired and demoralized too many engineers so no one was left to keep the systems running normally? Is it because you forgot to pay the cloud bills? Is it because deep down you don’t like it when people read posts on our site and you want to stop them, or you don’t like relying on ad revenue and want to sabotage my ability to sell ads?”

no matter what the answers are, this guy’s gotta go. If you are in charge of the software engineers at a social media site, and you make it so that people can’t read the site, that’s bad.

Over the past 10 days, [Ultimate Fighting Championship President Dana] White said he, Mr. Musk and [Mark] Zuckerberg — aided by advisers — have negotiated behind the scenes and are inching toward physical combat. While there are no guarantees a match will happen, the broad contours of an event are taking shape, said Mr. White and three people with knowledge of the discussions.People keep emailing to ask about, like, the fiduciary duties and securities-law disclosure issues here, but I’m gonna wait until they’re in the octagon before I worry about that stuff

Reddit is rumored to have plans to go public, but they need better leadership than the current team. Huffman has shown no leadership skills. He doesn’t know how to read the room. Most importantly, he lacks the social empathy to lead a social platform. Even more disappointing is the lack of comments or intervention from Reddit co-founder Alexis Ohanian, the always chatty — who seems to have advice for every other founder, except for his co-founder. […] In an attempt to monetize the content generated by the community, Huffman forgot that it is the people who make the platform. The community is the platform. It is something the owners of social media platforms forget. […] It happened with MySpace. It has happened with Twitter. It is now happening with Reddit. They never learn from past mistakes. They assume that because they own the platform, they own the community. Every time they forget that important thing, they erode the community’s trust. And once that trust goes, so does the unfettered loyalty. People start looking for options.

I have zero faith in Steve Huffman’s ability to lead Reddit. What kind of chief executive officer posts this comment after a massive community backlash?

closing off 3rd party API access mostly serves an IPO, not OpenAI. If Reddit merely wanted to restrict the ability to scrape its data, they could have done so without killing off clients – e.g. via licensing deals. However, perhaps if access to training data is seen as an elbows-out brawl, I could see how Reddit would be extremely protective of its data. I mean, lyrics websites, map makers, and dictionaries go to great lengths to protect their data. It would not be a giant stretch for Reddit to do so as well.

Huffman is right that, in the end, the whole situation reflects a product problem: the native Reddit apps, both on desktop and on mobile, are ugly and difficult to use. (In particular, I find the nested comments under each post bizarrely difficult to expand or collapse; the tap targets for your fingers are microscopic.) Reddit didn’t really navigate the transition to mobile devices so much as it endured it; it’s little wonder that millions of the service’s power users have sought refuge in third-party apps with more modern designs.

Betting against a first-generation Apple product is a bad trade — from infamous dismissals of the iPhone to disappointment with the original iPad. In fact, this is a reflection of Apple’s strategy: Start with a product that’s more an elegant proof-of-concept than a prime-time hit; rely on early adopters to provide enough runway for its engineers to keep iterating; and trust in unmatched capital, talent, brand equity, and staying power to morph a first-gen toy into a third-gen triumph

We are a long way from making three screens, a glass shield, and an array of supporting hardware light enough to wear for an extended period. Reviewers were (purposefully) allowed to wear the Vision Pro for less than half an hour, and nearly every one said comfort was declining even then. Avatar: The Way of Water is 3 hours and 12 minutes.

Meta’s singular strategic objective is to escape second-tier status and, like Apple and Alphabet, control its distribution. And its path to independence runs through Apple Park. Zuckerberg is spending the GDP of a small country to invent a new world, the metaverse, where Apple doesn’t own the roads or power stations. Vision Pro is insurance against the metaverse evolving into anything more than an incel panic room.

The only product category where VR makes difference is good VR games. Price is not limiting factor, the quality of VR experience is. Beat Saber is good and fun and physical exercise. Half Life: Alyx, is amazing. VR completely supercharges horror games, and scary stalking shooters. Want to fear of your life and get PTSD in the comfort of your home? You can do it. Games can connect people and provide physical exercise. If the 3rd iteration of Vision Pro is good for 2 hours of playing for $2000 Apple will kill the console market. Playstations no more. Apple is not a gaming company, but if Vision Pro becomes better and slightly cheaper, Apple becomes gaming company against its will.

I had hoped BeReal would take its twist on “appointment television” to other mediums — adding a group chat that was only active for a designated period each day, say, or collaborative videos that you could only add to at certain times. That, to me, feels more in the spirit of what the company was trying to build in the first place.

Perhaps the weirdest thing about BeReal this week was the company’s quiet announcement that it plans to never let reporters attribute any statements made by the company. “We’ll be happy to answer questions,” the company wrote in a blog post, “but irrespective of who answers questions, we’ll require that it always be reported as just from and on behalf of the BeReal Crew, not a single individual :).”In general, I don’t have a problem attributing statements to companies. Most PR statements are written by a committee, and it doesn’t always feel accurate to me to attribute a sentence to someone who I know most likely didn’t write it. At the same time, this is a really weird way to say that your CEO (Alexis Barreyrat) plans never to give an interview. And not a great sign for the company overall, I’d say. There’s no shame in keeping your head down and ignoring the press for a long time. But never allowing anyone to speak to the press under their own name is a real sign of weakness.

Of course, you shouldn’t discriminate, but when we say belonging, it has to be more than just inclusion. It has to actually be the proactive manifestation of meeting people, creating connections in friendships. And Jony Ive said, “Well, you need to reframe it. It’s not just about belonging, it’s about human connection and belonging.”And that was, I think, a really big unlock. The next thing Jony Ive said is he created this book for me, a book of his ideas, and the book was called “Beyond Where and When,” and he basically said that Airbnb should shift from beyond where and when to who and what?Who are you and what do you want in your life? And that was a part of the inspiration behind Airbnb categories, that we wanted people to come to Airbnb without a destination in mind and that we could categorize properties not just by location but by what makes them unique, and that really influenced Airbnb categories and some of the stuff we’re doing now.

Murdoch lobbied Trump to punish Facebook and Google for siphoning his newspapers’ advertising revenue. In 2019, Trump’s Justice Department launched an antitrust investigation of Google. In 2021, Google settled and struck a lucrative content-sharing deal with Murdoch. The source also said Murdoch pushed Trump to open up land for fracking to boost the value of Murdoch’s fossil fuel investments. The Trump administration released nearly 13 million acres of federally controlled land to fracking companies. Murdoch, who sources say has become more pro-life in recent years, encouraged Trump to appoint judges who would overturn Roe v. Wade. “Rupert wanted Trump’s Supreme Court justices in so they could make abortion illegal,” a source who spoke to Murdoch said.

numerous sources say they cannot discern what kind of material Salke and head of television Vernon Sanders want to make. A showrunner with ample experience at the studio says, “There’s no vision for what an Amazon Prime show is. You can’t say, ‘They stand for this kind of storytelling.’ It’s completely random what they make and how they make it.” Another showrunner with multiple series at Amazon finds it baffling that the streamer hasn’t had more success: Amazon has “more money than God,” this person says. “If they wanted to produce unbelievable television, they certainly have the resources to do it.”

I think when you're starting a company, it's really useful to ask the question, why now? And this is like, pretty cliche for startup stuff, so if you've heard of it already, apologies, but I do think it's a really useful framework. And that question of why now? Can be societal. Maybe there's some new cultural trend, perhaps it's regulatory. Some law has been passed or appealed. I like the technological version. And for us we saw drones in 2012 and WebGL as few technologies that were happening where because these technologies were happening, new possibilities were suddenly there.

But we're like, why would you do anything in photo editing if you're not on the phone? And so we felt like we were kind of building the wrong place and then eventually sort of shifted our attention to design, which I had been a design internet flipboard and that helped kind of help me realize what would be possible there.

And I would just say don't just go for an idea because it's kind of working. Go for an idea that you really care about because even if it doesn't work, you'll still learn from it and you'll still have one.

Duolingo had already implemented several gamification mechanics successfully, such as the progression system on the home screen, streaks, and an achievements system. And second, top digital games at the time had much higher retention rates than our product, which I took as evidence that we hadn’t yet reached the ceiling for gamification’s impact.

The moves counter allowed users only a finite number of moves to complete a level, which added a sense of scarcity and urgency to the gameplay. We decided to incorporate the counter mechanic into our product. We gave our users a finite number of chances to answer questions correctly before they had to start the lesson over.

Depressingly, the result of all that effort was completely neutral. No change to our retention. No increase in DAU. We hardly got any user feedback at all.

When you are playing Gardenscapes, each move feels like a strategic decision, because you have to outmaneuver dynamic obstacles to find a path to victory. But strategic decision-making isn’t required to complete a Duolingo lesson—you mostly either know the answer to a question or you don’t. Because there wasn’t any strategy to it, the Duolingo moves counter was simply a boring, tacked-on nuisance. It was the wrong gamification mechanic to adopt into Duolingo. I realized that I had been so focused on the similarities between Gardenscapes and Duolingo that I had failed to account for the importance of the underlying differences.

Referrals work for Uber because riders are paying for rides on a never-ending pay-as-you-go system. A free ride is a constant incentive. For Duolingo, we were trying to incentivize users by offering a free month of Super Duolingo. However, our best and most active users already had Super Duolingo, and we couldn’t give them a free month when they were already in a plan. This meant that our strategy, which needed to rely on our best users, actually excluded them.

Now when looking to adopt a feature, I ask myself:Why is this feature working in that product?Why might this feature succeed or fail in our context, i.e. will it translate well?What adaptations are necessary to make this feature succeed in our context?

Our failure with the Gardenscapes-style moves counter hadn’t actually disproved any of the original reasons why we believed gamification still had upside for Duolingo—we had only learned that the moves counter was a clumsy attempt at it. This time, we would be more methodical and intelligent about features we added or borrowed.

We deliberately made our leaderboard as casual and frictionless as possible; users were automatically opted in and could progress to the top of the first league by merely engaging consistently in their regular language study. By keeping the game mechanic exciting, but making it simpler than in FarmVille 2, we felt like we had struck the right balance of adopting and adapting.

Blockbuster responded by pricing Blockbuster Online 50 cents cheaper, accelerating Netflix’s stock slide. Netflix, though, knew that Blockbuster was carrying $1 billion in debt from its spin-off from Viacom, and decided to wait it out; Blockbuster cut the price again, taking an increasing share of new subscribers, and still Netflix waited.

A common example of diminishing returns is choosing to hire more people on a factory floor to alter current manufacturing and production capabilities. Given that the capital on the floor (e.g. manufacturing machines, pre-existing technology, warehouses) is held constant, increasing from one employee to two employees is, theoretically, going to more than double production possibilities and this is called increasing returns. If we now employ 50 people, at some point, increasing the number of employees by two percent (from 50 to 51 employees) would increase output by two percent and this is called constant returns. However, if we look further along the production curve to, for example 100 employees, floor space is likely getting crowded, there are too many people operating the machines and in the building, and workers are getting in each other's way. Increasing the number of employees by two percent (from 100 to 102 employees) would increase output by less than two percent and this is called "diminishing returns."

In software development, technical debt (also known as design debt[1] or code debt) is the implied cost of additional rework caused by choosing an easy (limited) solution now instead of using a better approach that would take longer.[2] Analogous with monetary debt,[3] if technical debt is not repaid, it can accumulate "interest", making it harder to implement changes. Unaddressed technical debt increases software entropy and cost of further rework.

Common causes of technical debt include: Ongoing development, long series of project enhancements over time renders old solutions sub-optimal.

Parallel development on multiple branches accrues technical debt because of the work required to merge the changes into a single source base. The more changes done in isolation, the more debt.

The reason startups are so counterintuitive is that they're so different from most people's other experiences. No one knows what it's like except those who've done it. Which is why YC partners should usually have been founders themselves.

the essence of what happens at YC is to figure out which problems matter most, then cook up ideas for solving them — ideally at a resolution of a week or less — and then try those ideas and measure how well they worked. The focus is on action, with measurable, near-term results.

A small improvement in navigational ability can make you a lot faster, because it has a double effect: the path is shorter, and you can travel faster along it when you're more certain it's the right one. That's where a lot of YC's value lies, in helping founders get an extra increment of focus that lets them move faster. And since moving fast is the essence of a startup, YC in effect makes startups more startup-like.Speed defines startups. Focus enables speed. YC improves focus.

However good you are, good colleagues make you better. Indeed, very ambitious people probably need colleagues more than anyone else, because they're so starved for them in everyday life.