The article seems to be be based on the current limitations of LLMs. I don't think YC and other VCs are betting on what LLMs can do today, I think they are betting on what they might be able to do in the future.
As we've seen in the recent past, it's difficult to predict what the possibilities are for LLMS and what limitations will hold. Currently it seems pure scaling won't be enough, but I don't think we've reached the limits with synthetic data and reasoning.
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