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According to Jesse Lyu of Rabbit, the essence of startups can be summed up as "Expand rapidly, or face swift demise," but the key is to persevere and never surrender.

Rabbit's co-founder and CEO, Jesse Lyu, faces the possibility of his company's demise with a pragmatic mindset. Despite the looming threat posed by multibillion-dollar competitors like Google, Microsoft, or Apple, Lyu remains resolute in his determination not to give up. Speaking at StrictlyVC LA, Lyu shared his philosophical approach to the potential challenge of being overshadowed by industry giants. The company's flagship product, the r1 pocket AI assistant, garnered significant attention following its debut at CES, presenting an innovative concept. Lyu described the device's functionality as a combination of "intent" and "action," which enables it to act as a voice-powered assistant capable of remotely managing apps and performing complex tasks, akin to ChatGPT's conversational abilities.

Reflecting on his vision from a decade ago and the recent advancements in technology, Lyu expressed enthusiasm for the potential of devices like the r1. However, he acknowledged the initial challenges faced in integrating language models with action-based functionalities, leading to the development of the "large action model." This model, trained on user interactions with popular apps, aims to automate tasks effectively by extracting relevant elements from app interfaces. While third-party language models are utilized for language processing, Lyu assured that the company's hardware sales have been successful, with significant orders received for the r1. Regarding potential subscription models, Lyu emphasized the device's affordability and simplicity, expressing skepticism about its feasibility. However, he hinted at future plans for users to train and sell their app-specific models, with Rabbit potentially benefiting from this endeavor.

Despite the fierce competition from tech giants investing heavily in AI, Lyu maintains a Zen-like perspective on Rabbit's survival. He acknowledges the high failure rate among startups and emphasizes the importance of focusing on one's own endeavors amidst competition. Lyu sees competition as an opportunity for growth, acknowledging the inherent risks and uncertainties associated with startup ventures. Ultimately, Lyu remains committed to navigating the challenges ahead, viewing entrepreneurship as a survival game where success hinges on perseverance and determination.


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