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Small Language Models, Big Bets | Prithvi Raj - 360Labs.ai

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Brief overview

AI-native means rethinking every pre-LLM process; small fast teams beat IT giants, and applications beat foundational models.

  1. AI native is a process rewrite, not a featureEven an app with no AI in it counts if every workflow and hiring decision was rebuilt around what exists post-LLM.
  2. Speed is the only defensible advantageHe rejects moats outright: nothing stops Infosys spinning up a boutique arm, so the answer is always team and always being faster.
  3. India should build applications, not foundation modelsSarvam raised 53 million with government backing, but he'd rather see fine-tuned, on-device, Indian-language small models and consumer products.
Executive Summary AI
  • Prithvi defines AI native as rethinking every single process of what would have happened before an LLM existed, and says his shop qualifies even on projects with no AI features because every engineer comes from an AI research or AI engineering background and every coding workflow runs on something like cloud code or a codex.
  • He illustrates the 24-hour prototype claim with a call the day before yesterday with a public steel company that gave a one-sentence brief for an AI-native CRM and ERP: the CTO parsed their website and competitors into a single PRD, a senior engineer sprinted for two hours, and the demo call left the client asking which competitor the product had been sold to before.
  • Asked how a team of 10 scales against TCS with 600,000 employees and about $28 billion in revenue and Infosys with about 300 plus 1000 employees, he answers that scale is solved through team, citing Steve Jobs calling the Macintosh team his greatest product and a public Danish logistics company where his team sat with the control tower manager and shipped a SaaS platform within a week.
  • On India's AI bet he argues language has always been an abstraction of reality rather than reality itself, so future foundational models will be world models or physics-based models, and India's better use of resources is fine-tuned, on-device, multilingual small models — his own two senior engineers work from 12 midnight to 4am on an AI-native Linux operating system with SLM 360 embedded, with de
  • He places India's play at the application layer, notes that people don't like paying for software in India (GPT dropped its price to 300 rupees) and that after Dr. Saab, a WhatsApp-first AI doctor, they stepped back from consumer because a company putting 50 people on one product will always outscale them, returning instead through Omni AI, Crawl360 and hardware plans.
Key Quote
“When we say AI native, so that effectively for us means rethinking every single process of what would have happened before an LLM existed.”
— Prithvi
Key Quote
“So I actually don't think the future belongs to LLM.”
— Prithvi
Key Quote
“the main job of the founder is effectively just like recruitment and team building”
— Prithvi