State of the AI Industry in a Screenshot

AI companies really make 180 degree shifts overnight.

Oct. 2024 post goes into extended detail aobut how much work it is to build a RAG system, the competetive advantage in AI is not the LLM but being incredbly smart about what you feed into the context window.

Oct. 2025 proclaims RAG is dead: just pass everything into the 2M token context window, let agents decide what to pass in.

Source: Founder of a YC backed financial analysis company.