Rabbit CEO Jesse Lyu on the high-risk, highly-hyped r1 AI companion | StrictlyVC LA

Device and Pricing

• The R1 device addresses the challenges of using multiple apps by integrating various tasks into a single platform.
• Priced at $200 with no subscriptions, the R1 aims to minimize risk and ensure accessibility.

Large Action Model (LAM)

• LAM, the centerpiece of the R1's software, is an AI trained on real human interactions with various apps.
• LAM symbolically extracts buttons and elements from interfaces to automate tasks, working with any user interface without requiring specific knowledge or changes.
• Unlike traditional AI assistants, LAM does not require user passwords or sensitive information, addressing privacy concerns.

Business Model

• The company is not losing money by selling the R1 device and does not plan to use a subscription model.
• A "teach mode" feature allows users to create their own "rabbits" (LAM-powered applications) and potentially sell them through an app store-like platform.
• A partnership with Praxity provides free credits for its language model on the first 100,000 R1 devices.

Competition and Growth

• The speaker acknowledges the potential threat from larger companies like Apple, Google, and Microsoft but emphasizes the importance of focusing on their own growth and survival as a startup.