UPDATE: In a striking announcement, Replit CEO Amjad Masad declared that the future of the economy hinges not on the elusive “true AGI” but on the immediate potential of “functional AGI.” Speaking on the latest episode of the “a16z” podcast released Thursday, Masad emphasized that practical AI systems are already capable of transforming various sectors of the economy.
Masad argued that while tech giants like OpenAI and Google chase the dream of true AGI, the reality is that functional AGI—AI that learns from real-world data to autonomously complete tasks—is more than sufficient to revolutionize labor markets. “We can get to functional AGI,” Masad stated. “We’re on that track for sure,” suggesting that AI advancements can effectively automate substantial portions of today’s workforce.
Critically, Masad expressed skepticism about achieving true AGI, which would mimic human-like reasoning across diverse fields. “I’m bearish on true AGI breakthroughs,” he stated, highlighting that current AI innovations are already yielding significant economic value. He warned that the industry may be caught in a “local maximum trap,” where companies optimize existing models rather than pursue revolutionary advancements.
Masad’s comments come amid an ongoing discourse in the tech industry regarding the viability of AGI as a goal. Major players, including Microsoft and Meta, continue to invest heavily in AGI research. However, some experts are voicing doubts about whether today’s large language models (LLMs) can evolve into true general intelligence. “Nobody with intellectual integrity should still believe that pure scaling will get us to AGI,” stated AI expert Gary Marcus in August.
This skepticism was echoed by OpenAI CEO Sam Altman, who remarked during a recent press call that while the newly released GPT-5 demonstrates general intelligence, it still lacks key elements associated with AGI. The broader sentiment in the industry reflects a growing realization that the timeline for achieving true AGI may extend beyond our lifetimes.
Masad’s insights are particularly timely as the tech world grapples with shifting expectations around AI capabilities. He contends that the focus should shift to leveraging current AI technologies that can automate and enhance productivity. As companies strive to harness these innovations, the implications for employment and economic structures are profound.
The discussion surrounding AGI’s feasibility is gaining traction, with veterans like Yann LeCun, Meta’s chief AI scientist, cautioning that achieving AGI could take decades. “Most interesting problems scale extremely badly,” LeCun noted earlier this year, indicating that simply increasing data and computational power may not lead to smarter AI.
As the conversation evolves, the emphasis on functional AGI may reshape how we perceive the future of work and technology. With Masad’s call for immediate attention to practical AI solutions, the industry stands at a crossroads that could redefine societal and economic landscapes.
Stay tuned for more updates as this story develops and the implications of Masad’s insights unfold across the tech sector.
