Synthetic Data Insights

Sahil discusses the unique challenges of using synthetic data for LLMs, particularly the issue of hallucination and the importance of diverse data. He emphasizes the transition from using general-purpose APIs to building custom models, suggesting that companies should make this shift when they have a solid understanding of their use cases and a small, engaged user base. The conversation highlights the iterative nature of developing AI products and the specific scenarios where synthetic data can be most beneficial.