Figma CEO on failed Adobe deal, startup landscape, big redesign with AI

Figma's CEO discusses the failed Adobe acquisition, emphasizing the company's continued growth and innovation despite the setback. He highlights Figma's use of AI to enhance existing design tools, the rapid development in the AI field, and the company's strategy to offer AI features for free during the beta phase in 2024. The CEO also contemplates the future of the company, hinting at a potential IPO, and reflects on the importance of staying independent and focused on product improvement.

Takeaways

• 🧠 Figma is integrating AI into its platform to enhance users' existing creative abilities, using Open AI for its Large Models (LMs) and a diffusion model hosted by Amazon.
• 🔧 Figma's approach to AI is modular, allowing for the flexibility to swap out models as the technology evolves, acknowledging the rapid pace of change in the field.
• 🏁 The AI models are currently in a race to improve, with both performance and cost decreasing, suggesting a potential for specialization among AI companies in the future.
• 🆓 Figma's AI features will initially be offered for free during the beta phase, with the company planning to absorb the costs for 2024 to understand user engagement and usage patterns.
• 💰 Pricing for the AI features post-beta will be determined based on beta usage data, with a clear communication of costs planned for 2025.
• 🤔 The company is considering different pricing models, including subscription or per-usage basis, and is aware of various successful models in the industry.
• 🛠 Figma's focus is on deeply integrating AI to add functionality that improves designers' workflows, rather than just superficially applying AI.
• 🌟 The CEO of Figma reflects on the current landscape of AI companies, drawing parallels to the dot-com era, and ponders which companies will stand out in the future.
• 🚫 Six months after the failed Adobe acquisition, Figma has continued to innovate and grow, suggesting that the company's focus remained on its own development.
• 💼 The CEO hints at a potential IPO as a future path for Figma, indicating that while one path (M&A) was explored, the other (IPO) is now more likely.
• 🚀 Figma is committed to remaining an independent company, focusing on building for its users and continuing to innovate.

Q & A

What AI technologies is Figma currently utilizing for its features?

Figma is using Open AI for its language models and a diffusion model hosted by Amazon, as these were the ones working well for their use cases.

How does Figma approach the modularity of AI models in its system?

Figma builds its AI integration in a modular way, allowing for the swapping out of models as the only constant in the field is change.

Is the CEO of Figma seeing AI models becoming commoditized?

The CEO acknowledges that while it takes work to change out models for others, the field is in a period of rapid development with models getting faster and prices decreasing, suggesting a race and potential for specialization among model companies.

What is Figma's strategy for the pricing of its AI features during the beta phase?

Figma will make its AI features free during the beta mode in 2024, with the intention of understanding user engagement and usage patterns before determining the costs.

How does Figma plan to approach the cost of offering free AI features in 2024?

Figma intends to cover the costs during 2024, as they are uncertain about user engagement with the new features and will use the beta phase to inform their pricing strategy.

What pricing models has Figma observed working in the AI space?

While Figma has seen both subscription and per-usage pricing models work, they believe the chatbot approach differs significantly from a product approach and will need to determine the best model over time.

What is Figma's focus in integrating AI into its product?

Figma aims to integrate AI deeply into its product to add functionality that improves a designer's life, rather than just superficially applying AI.

What does the CEO of Figma consider when evaluating the success of an AI company in design?

The CEO reflects on the difficulty of predicting success, comparing the current period to the dot-com era, and suggests that important companies will be built, but it's uncertain which ones will stand out.

How did the failed Adobe deal impact Figma's operations and strategy?

Despite the failed acquisition by Adobe, Figma continued to accelerate its development, announcing new AI features and a new slide product, indicating a strong focus on remaining an independent company.

Is an IPO a potential future goal for Figma after exploring the M&A path?

The CEO hints at an IPO as a possible future path for Figma, suggesting that after trying the M&A route, the other path in tech would likely be considered.

What was Figma's approach during the acquisition process with Adobe?

Figma maintained its pace of development and innovation throughout the acquisition process, ensuring that they were able to continue announcing new features and products post the deal falling through.

Outlines

00:00

🤖 AI Adoption and Modularity in Product Development

The speaker discusses the integration of AI into their product, specifically mentioning the use of Open AI for their language models and Amazon-hosted diffusion technology. They emphasize the importance of modularity in AI implementation, allowing for the easy swapping of models as the field rapidly evolves. They also touch on the commodification of AI models and the potential for specialization among AI companies in the future, while acknowledging the current competitive race in the industry.

Keywords

Figma CEO

Figma CEO refers to the Chief Executive Officer of Figma, a company that specializes in cloud-based design tools and interfaces. In the context of the video, the CEO is discussing the company's strategy and developments, particularly in relation to their failed acquisition by Adobe and their ongoing work with AI.

Adobe deal

The 'Adobe deal' refers to a previously attempted acquisition of Figma by Adobe Inc., a multinational software company known for its creative and multimedia software products. The deal did not go through, as mentioned by the Figma CEO, due to regulatory issues.

Startup landscape

The term 'startup landscape' describes the current state and environment of new businesses and companies, especially in the technology sector. The Figma CEO touches upon this when discussing the rapid development and competition in the field of AI within startups.

AI

AI, or Artificial Intelligence, is the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the script, AI is central to Figma's strategy, with the CEO discussing the integration of AI into their product features.

LMs

LMs, or Large Models, are a type of AI model that can process and understand large amounts of data. The CEO mentions using Open AI for their LMs, indicating the application of such models in enhancing Figma's design tools.

Diffusion model

A diffusion model, in the context of AI, refers to a type of generative model that can create new data based on learned patterns. The CEO mentions using a diffusion model hosted by Amazon for Figma's AI features.

Commoditization

Commoditization is the process by which goods or services become similar in quality and price, turning into commodities. The CEO discusses the potential commoditization of AI models and the implications for Figma's strategy in the competitive AI market.

Pricing

Pricing in this context refers to the strategy and structure for how Figma plans to charge for their AI features. The CEO explains that they will initially offer the AI features for free during the beta phase and will determine pricing based on usage patterns.

Subscription model

A subscription model is a type of pricing strategy where customers pay a recurring fee to access a product or service. The CEO mentions considering this model for Figma's AI features, comparing it to the per-usage basis and reflecting on which approach will be more suitable.

Chatbot approach

The 'chatbot approach' refers to the use of AI in conversational interfaces, like chatbots, to interact with users. The CEO differentiates this approach from Figma's product-focused integration of AI, emphasizing the depth of functionality they aim to provide.

IPO

An IPO, or Initial Public Offering, is when a private company goes public by offering its shares for sale to the general public for the first time. The CEO hints at the possibility of Figma pursuing an IPO as an alternative to the M&A route they previously explored.

Highlights

Figma CEO discusses the failed Adobe deal and its aftermath, emphasizing the company's continued growth and innovation.

The CEO highlights the use of Open AI for Figma's LMs and Amazon-hosted diffusion models in their AI-powered features.

Reasons for choosing specific AI models are based on their effectiveness for Figma's use cases.

A modular approach to AI allows for flexibility and the ability to swap out models as the technology evolves.

The rapid development in the AI field is characterized by faster models and decreasing prices.

Figma anticipates specialization among AI model companies in the future.

Figma's AI features will initially be in beta mode and offered for free to gauge user engagement and usage patterns.

The company plans to absorb the costs of the AI beta in 2024, with pricing strategies to be determined based on user feedback.

Figma is considering different pricing models, including subscription or per-usage basis, for the broader rollout of AI features.

The CEO differentiates between chatbot and product approaches to AI integration, emphasizing Figma's commitment to enhancing designer's lives.

Reflections on the current state of AI companies, drawing parallels to the dot-com era and the potential for lasting impact.

The CEO's perspective on the challenges and opportunities in building a successful AI company in the design space.

Six months post-Adobe deal, Figma has continued to accelerate, launching new features and a slide product.

Figma's billion-dollar breakout fee and the CEO's hints at a potential IPO as a future path for the company.

The importance of maintaining momentum and independence for Figma during the acquisition process and beyond.

Figma's focus on building as an independent company and the potential for future growth and innovation.