Despite concerns about the startup's solvency due to API costs and other considerations, Lyu insists that they are not losing money by selling r1. The company has already received close to 100,000 orders for the device. Lyu also dismissed the idea of a subscription model, stating that the device is meant to be cheap and simple. He also mentioned a long-term plan for users to train and sell their own app-specific models, with Rabbit taking a cut of the profits.
Key takeaways:
- Rabbit's CEO Jesse Lyu has developed a pocket AI assistant, r1, that can remotely operate apps and perform complex actions, as well as carry on a conversation.
- The AI assistant uses a "large action model" trained on hours of actual users interacting with popular apps, enabling it to understand and automate tasks.
- Rabbit has managed to avoid losing money on the r1, thanks to the hardware team's ability to negotiate down the costs of parts and materials. They have already received close to 100,000 orders for the device.
- Lyu acknowledges the threat of large tech companies like Google, Microsoft, and Apple in the AI space, but maintains a philosophical approach, focusing on Rabbit's own progress and survival.