The FDE Playbook for AI Startups with Bob McGrew

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Bob McGrew helped build some of the most influential technologies of the past two decades. Bob was an early engineer at PayPal, an early executive at Palantir and was recently Chief Research Officer at OpenAI – where he led the development of ChatGPT, GPT-4 and the o1 reasoning model.

During his time at Palantir he was a pioneer of the Forward Deployed Engineer (FDE) model, a strategy that is at the heart of the AI boom today. On this episode of The Lightcone, he explains how FDEs became central to today’s startups, why “doing things that don’t scale at scale” works, and where he sees the biggest opportunities for founders working in AI.

Apply to Y Combinator: https://www.ycombinator.com/apply
Work at a startup: https://www.ycombinator.com/jobs

Chapters:
00:29 – From PayPal to Palantir to OpenAI
02:19 – The Role of a Forward Deployed Engineer
03:19 – How Palantir Invented It
07:56 – Product Discovery in the Field vs. Sales
09:51 – Echo and Delta Teams Explained
13:34 – Training Ground for Founders
14:35 – Consulting or Real Software?
17:54 – The Birth of Palantir’s Ontology
23:04 – Why AI Companies Adopt It
36:17 – What Success Metrics Look Like
41:14 – Building with Demo-Driven Development
44:56 – Joining the US Army Reserve
47:43 – Opportunities for Founders

Date: September 8, 2025

30 thoughts on “The FDE Playbook for AI Startups with Bob McGrew

  1. This is not a new concept. We’ve been doing this in the aerospace industry for years. Embed engineers at the aircraft manufacturers or military brand and do what FDEs do these days. Silicon Valley always rebranding old concepts as if it’s something new and groundbreaking 🙄

  2. This sounds like a new wrapper around agile development where you get quick feedback from customers.

    I like the team structure: Echo Teams handle customer engagement, while Delta Teams swiftly develop solutions, allowing for agile adaptation and maintaining a balance between immediate and strategic goals.

    This video showed up in my weekly AI + Business newsletter, and it was a great addition. Thanks!

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