At an AI conference with Jensen Huang and Sam Altman, the speaker argues that memory matters as much as compute and data for AI agents. The Model Context Protocol is a new universal translator that lets different AI systems and software tools talk to each other, solving a critical interoperability problem.
Chapters
You're exactly right, Ed. So there's compute, there's obviously the data, there's obviously the power and the algorithms. But another important component is memory, because when you interface with an agent, you want it to remember you, of course, but it also has to remember itself. Just recently, we hosted our annual AI conference, Sequoia Aircent. We brought together 150 of the top minds in the industry. This is everyone from Jensen Huang and Sam Altman to the young up and comers. And the number one technical topic of the conference was a concept called tool use. Tool use is all about AIs working with each other. We're teaching the computer how to use the computer. And there was, fortunately, a big advancement in our industry over the past few months, a new protocol called Model Context Protocol. Think about each agent as an expert. Think about every piece of software as an expert. Your CRM is really good at remembering your previous interactions with customers. For example, the issue is that those experts don't necessarily speak the same language. What this new protocol allows is a universal translation mechanism so that all these agents and all these softwares can communicate. That is pivotal to us as the United States staying ahead. We have to be working together.
