Startups like Cognition Labs find their edge not by competing on pre-training large models, but by mastering post-training. They build specialized reinforcement learning environments that teach models specific, real-world workflows (e.g., using Datadog for debugging), creating a defensible niche that larger players overlook.

When building core AI technology, prioritize hiring 'AI-native' recent graduates over seasoned veterans. These individuals often possess a fearless execution mindset and a foundational understanding of new paradigms that is critical for building from the ground up, countering the traditional wisdom of hiring for experience.

Small firms can outmaneuver large corporations in the AI era by embracing rapid, low-cost experimentation. While enterprises spend millions on specialized PhDs for single use cases, agile companies constantly test new models, learn from failures, and deploy what works to dominate their market.

A unique dynamic in the AI era is that product-led traction can be so explosive that it surpasses a startup's capacity to hire. This creates a situation of forced capital efficiency where companies generate significant revenue before they can even build out large teams to spend it.

Aravind Srinivas intentionally avoids hiring candidates with established track records from large tech companies. He believes people hungry for their first major success are more motivated and better suited for a startup's intensity than those who may be less driven after a previous big win.

The key technical skill for an AI PM is not deep knowledge of model architecture but a higher-level understanding of how to orchestrate AI components. Knowing what AI can do and how systems connect is more valuable than knowing the specifics of fine-tuning or RAG implementation.