UPDATE: In a bold statement on the “a16z” podcast released just yesterday, Replit CEO Amjad Masad asserted that the economy does not require true Artificial General Intelligence (AGI) to experience profound transformation. Instead, he advocates for the development of “functional AGI,” which he claims is already capable of reshaping society and automating substantial portions of the workforce.
Masad’s remarks come at a time when the tech industry is grappling with the significance and feasibility of achieving true AGI, a form of AI that can learn and adapt across various knowledge domains like humans. He emphasized that while the quest for true AGI continues, “functional AGI” that learns from real-world data can already deliver significant economic value. “We can get to like functional AGI,” he stated, highlighting its potential to automate labor across multiple sectors.
The tech landscape is currently saturated with discussions about the implications of AGI, yet Masad believes the focus should shift. He expressed skepticism about the possibility of achieving true AGI, declaring, “I’m bearish on true AGI breakthrough because what we built is so useful and economically valuable.”
Masad warned that the industry might be ensnared in a “local maximum trap,” wherein companies optimize existing AI models instead of innovating towards a genuine breakthrough. “Who knows?” he pondered regarding the timeline for solving the general intelligence problem, indicating it may not occur within our lifetimes.
Masad’s commentary arrives amid a broader skepticism about AGI’s viability. Notably, prominent AI experts, including Gary Marcus, have questioned whether current AI models can evolve into true general intelligence. In a recent blog post, Marcus stated, “Nobody with intellectual integrity should still believe that pure scaling will get us to AGI.” This sentiment reflects a growing realization that past predictions of AGI’s imminent arrival have often been overstated.
Additionally, the recent launch of OpenAI’s GPT-5 failed to meet lofty AGI expectations. OpenAI CEO Sam Altman acknowledged during a press call in August that while the model exhibits general intelligence, it still lacks critical elements that define true AGI. Similarly, Yann LeCun, Meta’s chief AI scientist, cautioned that achieving AGI could still be decades away, emphasizing that “most interesting problems scale extremely badly.”
As the debate over AGI continues to unfold, the focus on “functional AGI” may serve as a pivotal shift in how the tech industry approaches AI development. As Masad noted, the current advancements in AI have the potential to automate large swathes of labor, making it an urgent priority for businesses looking to stay competitive.
The tech community and stakeholders worldwide are now left to ponder: Is the pursuit of true AGI worth the investment of time and resources, or should the focus be on harnessing the capabilities of functional AGI for immediate economic impact?
Stay tuned for more updates on this developing story as the future of AGI and its implications for society continue to evolve.
