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October 23.2025
3 Minutes Read

Why Scaling AI Models Might Not Be the Future: Insights from Cohere's Sara Hooker

Confident woman discussing scaling AI models in a minimalistic office.

The Transition from Scaling to Adaptation in AI

The landscape of artificial intelligence is undergoing a pivotal shift. While major tech firms pour billions into building expansive data centers with the hope of achieving superintelligent systems, a notable trend suggests that this approach may be nearing its limits. Sara Hooker, Cohere's former VP of AI Research, positions her new startup, Adaption Labs, as a counterpoint to the prevailing narrative that scaling up is the sole path to AI improvement. Rather than just adding more compute power, Adaption Labs aims to create AI systems that continuously learn and adapt from their environments, encapsulating a more nuanced understanding of intelligence.

The Limitations of Current AI Training Models

The belief that merely increasing the size and power of AI models will lead to unprecedented breakthroughs in AI capabilities is under scrutiny. Despite the allure of scaling, evidenced by the astronomical investments in data centers—some equating to the size of Manhattan—experts like Hooker argue that such scale has not necessarily translated into intelligent systems capable of real-world application. Instead, the models often remain static once deployed, unable to learn from experiences or adapt in real-time.

Adaption Labs: A New Paradigm for AI

Founded by Hooker and Sudip Roy, Adaption Labs champions the philosophy that the future of AI lies in its ability to be dynamic. Hooker emphasizes that adaptation is the core of learning, akin to human experiences. For example, if someone stubs their toe, they instinctively learn to be more cautious around that area in the future. Ideally, AI should operate with a similar capacity—learning from its mistakes and continuously evolving. Hooker states, "This is what we see as the heart of learning, one that today’s AI systems lack, as they often just repeat errors without an efficient mechanism to adapt." Moreover, traditional reinforcement learning (RL) methods have not kept pace with the need for AI to learn effectively in real-world applications, where mistakes can be frequent. This gap underscores the demand for innovative approaches like those being developed at Adaption Labs.

The Cost of Customization in Large AI Models

As enterprises turn to AI to enhance their operations, many find themselves confronted with exorbitant costs for customization. For instance, reports indicate that companies seeking help from established firms like OpenAI for fine-tuning their AI models might face bills exceeding $10 million. This presents a barrier, especially for smaller organizations eager to harness AI but lacking the financial resources. Hooker's approach offers a potential solution by creating systems that can adapt and learn without the same heavy financial burden, making AI more accessible.

Future Predictions: Shifting Focus from Scale to Performance

The implications of this paradigm shift are profound. As the industry wrestles with the limitations of scaling, we may see a broader acceptance of adaptive AI models, where systems are not only more efficient but also more user-friendly and applicable across various industries. By transitioning from a one-size-fits-all approach to more agile, adaptable models, businesses can leverage AI in ways that align with their unique needs, improving performance and cost-effectiveness.

Conclusion: A Call for Rethinking AI Development

The discourse around AI has long been centered on the race for scale, but new voices like Sara Hooker’s are challenging us to look deeper. As AI systems evolve to meet the complexities of real-world interactions, the potential for innovation becomes limitless. Stakeholders across the tech landscape must begin investing resources towards fostering adaptability in AI. Those willing to pursue this new frontier may very well lead the next wave of AI breakthroughs.

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The OpenAI Mafia: Exploring 18 Startups Revolutionizing AI Industries

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02.19.2026

Is Your Startup’s Check Engine Light On? Insights from Google Cloud’s VP

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02.18.2026

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