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Why Physical AI Is the Next Platform Shift

Why Physical AI Is the Next Platform Shift

Y Combinator20mJul 25, 2026
0:00 / 20:11

Summary

The discussion centers on Encord's focus on "physical AI"—a strategy prioritizing data scalability—and the broader shifts occurring in artificial intelligence development. Eric, the founder, explains that early AI development relied heavily on manual feature engineering but has increasingly benefited from scaling systems with more data and compute power, a concept known as the “bitter lesson.” His decision to leave a high-paying quantitative finance role stemmed from a desire to build a company contributing to what he sees as a transformative technological shift. The release of ChatGPT signifi

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AI represents a technological paradigm shift of our generation.

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