AI won't replace designers because it lacks taste and subjective opinion. Instead, as AI gets better at generating highly opinionated (though not perfect) designs, it will serve as a powerful exploration tool. This plants more flags in the option space, allowing human designers to react, curate, and push the most promising directions further, amplifying their strategic role.

To achieve 1000x efficiency, Unconventional AI is abandoning the digital abstraction (bits representing numbers) that has defined computing for 80 years. Instead, they are co-designing hardware and algorithms where the physics of the substrate itself defines the neural network, much like a biological brain.

While LLMs dominate headlines, Dr. Fei-Fei Li argues that "spatial intelligence"—the ability to understand and interact with the 3D world—is the critical, underappreciated next step for AI. This capability is the linchpin for unlocking meaningful advances in robotics, design, and manufacturing.

Designing a chip is not a monolithic problem that a single AI model like an LLM can solve. It requires a hybrid approach. While LLMs excel at language and code-related stages, other components like physical layout are large-scale optimization problems best solved by specialized graph-based reinforcement learning agents.

Just as TSMC enabled "fabless" giants like NVIDIA, Recursive Intelligence envisions a "designless" paradigm. They aim to provide AI-driven chip design as a service, allowing companies to procure custom silicon without the massive overhead of hiring and managing large, specialized hardware engineering teams.

True co-design between AI models and chips is currently impossible due to an "asymmetric design cycle." AI models evolve much faster than chips can be designed. By using AI to drastically speed up chip design, it becomes possible to create a virtuous cycle of co-evolution.

AI is developing spatial reasoning that approaches human levels. This will enable it to solve novel physics problems, leading to breakthroughs that create entirely new classes of technology, much like discoveries in the 1940s led to GPS and cell phones.

OpenAI is designing its custom chip for flexibility, not just raw performance on current models. The team learned that major 100x efficiency gains come from evolving algorithms (e.g., dense to sparse transformers), so the hardware must be adaptable to these future architectural changes.

For creative work like design, AI's true value isn't just accelerating tasks. It's enabling designers to explore a much wider option space, test more possibilities, and apply more craft to the final choice. Since design is non-deterministic, AI serves creative exploration more than simple speed.