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Surge AI’s CEO says he would never hire these 2 roles at an early-stage startup

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There’s a new set of consulting firms leveraging AI to compete with the giants.

  • Surge AI’s CEO says two roles don’t belong on a founding team: Product managers and data scientists.
  • As a former data scientist, Edwin Chen said the role adds little value in a company’s early days.
  • Product managers don’t make sense early on — founders and engineers should own the product, he said.

Product managers and data scientists have no place on a founding team, said Surge AI’s CEO, Edwin Chen.

Chen said on an episode of “No Priors Podcast” published Thursday that he often hears early-stage founders list the roles among their first five to 10 hires. “This is just wild to me,” he said.

Chen, who used to be a data scientist himself, said he would not hire data scientists early.

“Data scientists are great when you want to optimize your product by 2% or 5%, but that’s definitely not what you want to be doing when you start a company,” he said.

“You’re trying to swing for 10x or 100x changes, not worrying and nitpicking about small percentage points that are just noise anyway.”

The founder of the data labeling startup also said product managers don’t make sense early on. He said that the role becomes useful only once engineers no longer have the time or capacity to drive product direction.

“Your engineer should be hands-on. They should be having great ideas as well,” he said.

Product managers are great when your company gets big enough, but at the beginning, you should be thinking about yourself, about what product you want to build,” he added.

Surge AI and Chen did not respond to a request for comment from Business Insider.

The great product manager debate

Chen’s comments come as the debate continues in the startup world over the role of product managers.

Product managers have been referred to — both affectionately and critically — as “mini-CEOs” of the products they oversee. They act as a bridge among engineers, sales teams, customer service, and other departments, ensuring that products align with user needs.

But the role has become a polarizing one, with some tech workers arguing that product managers add little value, Business Insider’s Amanda Hoover reported in November.

Microsoft wants to increase the number of engineers relative to product or program managers, BI’s Ashley Stewart reported in March. Other companies like Airbnb and Snap are rethinking the need for product managers.

The call for executives to go “founder mode” — a concept coined by the Y Combinator cofounder Paul Graham and touted by Airbnb’s CEO, Brian Chesky — has some leaders questioning whether they should delegate product decisions to product managers.

In 2023, Chesky merged product management with marketing, and Snap told The Information in the same year that it laid off 20 product managers to help speed up the company’s decision-making.

Others believe product managers’ influence will only grow in the age of AI.

Microsoft’s chief technology officer, Kevin Scott, said on an episode of the “Twenty Minute VC” podcast published in March that product managers play a crucial role in setting up “feedback loops” to make AI agents better.

Read the original article on Business Insider
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Elon Musk fires back at Trump’s claim that his companies will still enjoy subsidies

Elon Musk looking at President Donald Trump in the Oval Office.
“The ‘subsidies’ he’s talking about simply do not exist,” Elon Musk wrote on X after President Donald Trump said Musk’s companies will still enjoy government subsidies.

  • President Donald Trump walked back his earlier attacks on Elon Musk and his companies.
  • Trump said Musk’s businesses will continue to enjoy federal subsidies.
  • However, Musk says that the subsidies Trump is “talking about simply do not exist.”

President Donald Trump said on Thursday that he won’t touch the federal subsidies Elon Musk’s companies are enjoying because he wants Musk to continue to prosper.

Musk, however, begs to differ.

“The ‘subsidies’ he’s talking about simply do not exist,” Musk wrote in an X post on the same day.

The Trump administration has already scrapped or slapped expiry dates on every clean energy incentive “while leaving massive oil & gas subsidies untouched,” Musk wrote in his post.

Musk’s EV company, Tesla, is already feeling the pinch. Tesla said during its earnings call on Wednesday that removing the $7,500 EV credit under Trump’s “One Big Beautiful Bill” would affect its US sales.

Vaibhav Taneja, the company’s chief financial officer, said the “abrupt change” meant the company has a “limited supply of vehicles in the US this quarter.”

SpaceX, on its part, wins federal contracts on merit, Musk said in his X post on Thursday. Musk said his rocket company is “doing a better job for less money. Rerouting SpaceX’s work to “other aerospace companies would leave astronauts stranded and taxpayers on the hook for twice as much,” he added.

The White House, Tesla, and SpaceX did not respond to requests for comment from Business Insider.

Threats and market jitters

Musk had been a prominent backer of Trump during last year’s presidential campaign and enjoyed a close relationship with Trump.

Musk spent at least $277 million supporting Trump and other GOP candidates in the 2024 elections. Shortly after Trump’s victory in November, he headed the White House DOGE office and led the administration’s cost-cutting efforts.

That was until last month, when Musk and Trump began to turn on each other.

Their relationship started to break down on June 5, when Musk attacked Trump’s signature tax bill in an X post, calling it a “MOUNTAIN of DISGUSTING PORK.” He also claimed credit for Trump’s victory in last year’s election.

“Such ingratitude,” Musk wrote.

Hours later, Trump threatened to cancel Musk’s government contracts in a Truth Social post, saying it would be the “easiest way to save money in our Budget.” That drew a tit-for-tat response from Musk, who said he would decommission SpaceX’s Dragon spacecraft, which is used in NASA missions, before walking it back.

Musk expressed regret over what he had said about Trump a few days later. Some of his posts about Trump “went too far,” Musk said.

The détente, however, didn’t last.

On July 1, Trump said DOGE should take a “good, hard, look” at Musk’s companies after Musk said he would start a new political party and defeat GOP politicians who voted for Trump’s tax bill.

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote on Truth Social.

“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” he added.

Musk dared Trump to follow through on his threat: “I am literally saying CUT IT ALL. Now.”

The markets were not as confident as Musk. Tesla’s stock fell by 5% after Trump’s post on July 1. Tesla’s shares are down by over 24% year to date.

Musk’s business empire has received at least $38 billion in government contracts, loans, subsidies, and tax credits over the last 20 years, per an analysis published by The Washington Post in February.

On Wednesday, Musk told investors on Tesla’s earnings call that the company is entering a “weird transition period where we will lose a lot of incentives in the US.”

“Does that mean like we could have a few rough quarters? Yeah, we probably could have a few rough quarters,” Musk said.

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