UPDATE: In a striking declaration, Replit CEO Amjad Masad stated that the economy does not require true artificial general intelligence (AGI) to undergo transformative change. During an episode of the a16z podcast released just yesterday, Masad emphasized that “functional AGI” is more than sufficient to reshape society and automate significant portions of the labor market.
Masad argues that while the tech world fixates on achieving true AGI, which he describes as an intelligence capable of human-like reasoning, the practical application of functional AGI is already within reach. “We can get to functional AGI,” Masad asserted. “It doesn’t need human-like consciousness; it just needs the ability to learn from real-world data and complete tasks independently.”
He continued to outline the vast economic implications of this technology, stating, “We’ll target every sector of the economy and you can automate a big part of labor that way.” This statement comes as AI technologies continue to evolve rapidly, with functional AGI potentially ready to disrupt multiple industries.
Masad’s skepticism about reaching true AGI is noteworthy. He expressed concerns about being “bearish on true AGI breakthrough,” suggesting that the focus on developing AGI could distract from the current capabilities of AI that are already generating immense economic value. “What we’ve built is so useful,” he added, highlighting the importance of optimizing existing technologies rather than chasing theoretical advancements.
Additionally, Masad warned that the AI industry may be ensnared in what’s known as a “local maximum trap,” where companies focus on incremental improvements rather than groundbreaking innovations. “Maybe the general problem is actually not within our lifetimes,” he remarked, provoking thought about the timeline for achieving true AGI.
His comments come amid a broader conversation in the tech community regarding the feasibility and relevance of AGI itself. Industry giants like OpenAI, Google, Meta, and Microsoft are still heavily investing in the quest for AGI, yet skepticism is growing. Notably, AI expert Gary Marcus recently criticized the notion that simply scaling existing models will lead to AGI, stating, “Nobody with intellectual integrity should still believe that pure scaling will get us to AGI.”
The release of OpenAI’s GPT-5 has also sparked debate, with some experts claiming that while it demonstrates advanced capabilities, it still falls short of true AGI. OpenAI CEO Sam Altman acknowledged during a press call that, “This is clearly a model that is generally intelligent,” but admitted it lacks key elements that define AGI.
As the conversation evolves, Masad’s perspective highlights a pivotal moment in the ongoing dialogue about the future of AI. The potential for functional AGI to impact labor markets, economies, and industries is immense, making this a critical area to watch in the coming months.
WHAT’S NEXT: Industry leaders will likely continue to debate the trajectory of AGI development, while companies explore the practical applications of functional AGI in various sectors. This ongoing discussion could redefine technological priorities and investment strategies as we move forward.
Stay tuned for updates on this developing story as the implications of Masad’s insights unfold across the tech landscape.