Anthropic's $10B Round, Klarna's IPO, a16z's 72-Deal Seed Investment Machine, and Why Marc Benioff Rejects AGI Hype

TL;DR

Marc Benioff believes AGI hype overstates what today’s large language models can do because they combine a finite set of algorithms with a relatively finite set of internet data rather than consciousness or genuine personhood. Salesforce is instead applying agentic AI to support and sales, reducing human support roles from about 9,000 to 5,000 while calling back previously neglected leads. Read on to see how that strategy is changing Salesforce’s products and operations.

Transcript

We have all been sold a lot of hypnosis around what's about to happen with AI. You're talking to somebody who is extremely suspect if anybody uses those initials. Agi. Today we're joined by one of the greatest founders of the last 20 years, Mark Benny off from Salesforce. When you look at other data clouds, Snowflake, Data Brick, Palanteer, Foundry... Read More

Key Insights

• Large language models today are two things combined: a finite set of algorithms that have improved incrementally over five years, and a relatively finite set of data pulled off the internet. Together they feel intelligent but are not conscious or a 'being'.
• AGI is treated with deep suspicion by Benioff, who says people have been sold 'hypnosis' around what AI is about to do, and that this is not the actual current state of technology despite how amazing today's AI is.
• Over-reliance on inaccurate AI is a real danger. Benioff cites articles about doctors so dependent on inaccurate AI that they gave patients bad advice while becoming intellectually lazy, calling it a huge warning sign.
• Salesforce refuses to join the AI talent-buying frenzy. While Zuckerberg pays record sums and offers reach a billion dollars, Benioff says the company is focused instead on defining the next generation of the enterprise.
• Agentic support let Salesforce cut human support agents from about 9,000 to about 5,000, rebalancing that headcount into other growing parts of the company. Its help.salesforce.com uses an omni-channel supervisor coordinating human and digital agents.
• Salesforce had over 100 million leads across 26 years it could never call back due to too few SDRs. Its new agentic sales product now calls those leads back and holds conversations, integrated through the omni-channel supervisor.
• Data Cloud plus AI has passed $1 billion in revenue and is Salesforce's fastest-growing cloud product in 26 years. A federated data cloud harmonizing all company data (a reason for buying Informatica) makes the AI more accurate.
• Benioff believes every piece of software Salesforce sells will be agentic, comparing it to how software was never on-prem again after 2000. He promises humans and agents working together across Sales Cloud, Service Cloud, and Slack.

Questions & Answers

Q: Why is Marc Benioff skeptical about AGI?

Benioff says people have been sold “hypnosis” about what AI is about to do and that AGI is not the current state of technology. Today’s models can feel intelligent, but he argues that they are not conscious beings, have no childhood, and have not suffered.

Q: What are large language models made of, according to Benioff?

Benioff describes them as a finite set of algorithms combined with a relatively finite collection of internet data. He says the algorithms have improved incrementally over roughly five years, producing systems that can feel intelligent without actually being conscious or human.

Q: What danger does Benioff see in over-relying on inaccurate AI?

He cites two articles about doctors who became overly reliant on inaccurate AI, gave patients bad advice, and became intellectually lazy. Benioff calls this a major warning sign that people must recognize both AI’s usefulness and its limitations.

Q: Is Salesforce joining the AI talent-buying frenzy?

No. Benioff says Salesforce is not following other large incumbents into that competition, even as offers reach a billion dollars. The company is focused on defining the next generation of the enterprise by examining what works and allowing tactics to shape strategy over time.

Q: How has agentic AI changed Salesforce’s support operations?

Salesforce added an agentic layer at help.salesforce.com, where an omni-channel supervisor coordinates human support agents and digital agents. Benioff says this helped reduce human support roles from about 9,000 to about 5,000, with the headcount rebalanced into other growing parts of the company.

Q: How is Salesforce using agentic AI for sales leads?

Benioff says more than 100 million people contacted Salesforce over 26 years without receiving a callback because the company lacked enough staff. Its agentic sales system now calls those leads back, holds conversations, and integrates the interactions through an omni-channel supervisor.

Q: How large is Salesforce’s Data Cloud and AI business?

Benioff says Data Cloud combined with AI has exceeded $1 billion in revenue and is Salesforce’s fastest-growing cloud product in 26 years. The federated Data Cloud harmonizes company data in one place, which he says makes the AI more accurate.

Q: Does Benioff expect all Salesforce software to become agentic?

Yes. Benioff says he does not think Salesforce will sell any piece of software that is not agentic. He expects humans and agents to work together across products including Sales Cloud, Service Cloud, and Slack.

Summary & Key Takeaways

• Benioff is openly suspect of anyone using the initials AGI, arguing today's large language models are a finite set of incrementally improved algorithms trained on finite internet data. They can feel like a person but are not conscious, have no childhood, and haven't suffered, so much of the AI narrative is hypnosis rather than reality.

• Rather than buying AI talent like other incumbents, Salesforce focuses on agentic AI. Its help.salesforce.com agentic support layer, run by an omni-channel supervisor balancing human and digital agents, let it cut support headcount from about 9,000 to 5,000 and redeploy those people into other growing parts of the company.

• Salesforce's Data Cloud combined with AI has surpassed $1 billion in revenue as its fastest-growing product in 26 years. Agentforce, unannounced a year ago and unshipped until November, handles as many interactions as support agents. Benioff eyes Snowflake, Databricks, and Palantir Foundry, all at three to four billion in revenue.