Solving the Hardest Problems in Dev Tools | Jake Cooper, Founder of Railway

18 Jul 2025 · 1 h 28 min · 44 chapters

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In short

Railway’s approach to “solving the hardest problems in dev tools” by making deployment, scaling, and infrastructure configuration cheap in both time and money, especially for AI-era software teams that must iterate faster than competitors.

Guest background

Jake Cooper is founder of Railway. He grew Railway to “mid eight figures” in revenue. He focuses on backend infrastructure for AI-native software and on internal systems that improve developer experience and support.

Key claims

  • Traditional dev infrastructure (Terraform, cloud dashboards, Kubernetes/Ansible/YAML) forces teams to learn many “knobs” and do slow, error-prone configuration work.
  • Railway abstracts those hard parts: users deploy by providing a GitHub repo and desired resources; Railway manages provisioning, versioning, rollouts, and live infrastructure.
  • AI increases iteration speed, so lacking tooling risks being out-executed.
  • Railway’s product-market fit accelerated in the last six months as new users hit fewer “edge” problems and adoption surged.
  • Railway invests heavily in speed and support as part of the product, not a cost center.

Notable examples

  • Started with a “crappy script” to spin up databases (Postgres first) to avoid AWS dashboard setup delays.
  • Built internal support tooling to reach ~24-hour SLAs (and faster for enterprise), using macros plus AI context.
  • “Templates” and an open-source kickback program: template creators can earn 25% of revenue when others deploy their templates.
  • Community “bounties” route questions to specialized experts (e.g., Python throughput issues).
  • Built own data centers to reduce latency toward ~100ms and lower network costs for data-intensive AI workloads.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Introduction to Hard Problems

0:00 to 0:39

Explore the challenges within software development and the need for effective tools.

“There's only two modes, hard problems, doing hard things.”

The Unique Value of Railway

1:01 to 1:30

Learn how Railway simplifies the complexities of backend infrastructure.

“Railway has made a bunch of creative and bold product bets, like enabling users to create templates, earning a revenue share when other people use them, and building their own data centers and cloud service.”

Rapid Ramp-Up for New Hires

1:30 to 1:55

Discusses how Railway integrates new hires quickly to tackle hard problems.

“What hyper growth companies get wrong on org design.”

Rapid Ramp-Up for New Hires

2:06 to 3:14

Discusses how Railway integrates new hires quickly to tackle hard problems.

“If you're running a finance team, you know how much time gets wasted on expense management.”

Understanding Railway's Infrastructure

3:26 to 4:31

Jake explains how Railway abstracts complex infrastructure for users.

“Really quick, for people who don't know, I've heard Railway described as solving the hardest problem in DevTools.”

Historical Context of Cloud Infrastructure

4:31 to 5:20

A look at the traditional cloud infrastructure practices before Railway.

“So pre-Railway, what was I doing to do all this stuff?”

Challenges in Traditional Deployments

5:20 to 6:29

Discusses the difficulties of blue-green deployments and configuration management.

“There's a little bit of kind of like knowledge or stuff you have to kind of like know as you're going.”

The Concept of Railway's Design

6:29 to 7:21

Jake shares the reasoning behind the name and design philosophy of Railway.

“or my to do this or anything else like that, I'm going to go and deploy it, right.”

Prioritizing User Experience

7:21 to 8:14

Understanding Railway's value proposition in saving time and costs.

Founding Railway: The Initial Steps

8:14 to 9:01

Learn about Jake's journey and the initial steps taken to launch Railway.

“So what I thought was hard was actually, you know, it's still hard.”
Show all 44 chapters

The Evolution of Railway's Features

9:01 to 11:47

Jake shares insights on how Railway's features evolved from user feedback.

“I think things are going well, so I wouldn't mess up anything in general.”

The Market Shift in Software Development

11:47 to 14:00

Discussion on the growing demand for faster and simpler software solutions.

“But that's probably a pretty small percentage of people.”

Navigating the Competitive Landscape of AI Tools

14:00 to 16:30

Learn how companies need agile tooling to keep pace with competitors in AI.

“And in the age of AI, there's almost like a very, very material risk of like being out executed by your competitors because they are moving so quickly.”

Adoption of Railway by Enterprises

16:30 to 18:20

Understand the challenges and strategies for larger enterprises switching to Railway.

“basically say like, oh, what is this tool?”

The Journey of Securing Early Investments

18:20 to 21:50

Discover how early-stage investment conversations can lead to successful fundraising.

“two things and then at the end you know we had about half a million dollars worth of angel commits and then it kind of just all came together in that and then started doing it.”

Evolving Perspectives on AI Utilization

21:50 to 25:00

Explore the shift in mindset regarding AI's capabilities and applications.

“Dude, if I'd be so powerful, if I could read.”

Leveraging Automation for Efficiency

25:00 to 28:00

Learn about the importance of leveraging automation to gain efficiency in operations.

“One thing that I say often is grit, process, repeat.”

Understanding Customer Support Challenges

28:00 to 29:20

Learn about the importance of improving customer support response times and the unique solutions Railway has implemented.

“Like people would give us tickets and it would take like five or six days to like respond on some of these things.”

Building Community and Technical Solutions

29:20 to 31:20

Explore how Railway engages its community to solve technical questions through bounties and collaboration.

“We work in it in-house, our designers work on it and our engineers work on it.”

Navigating Product Development Decisions

31:20 to 33:10

Discover how Railway makes strategic product decisions by listening to user needs and avoiding feature overload.

“And it's now affecting these 10 ,000 people.”

Recognizing Product-Market Fit

33:10 to 33:30

Jake shares a pivotal moment when he realized Railway had reached a tipping point of success.

Innovative Product Features and Revenue Models

33:30 to 36:10

Learn about Railway's unique features, including one-click infrastructure templates and revenue generation strategies.

“honestly it's in like the last six months where it's it's like you know we had a conversation with the team where I was basically like, the oil rig is set up.”

Building Custom Data Centers for Enhanced Performance

36:10 to 38:10

Understand the rationale behind Railway's decision to build its own data centers and the benefits it provides.

Philosophical Views on Progress and Capitalism

38:10 to 41:40

Jake discusses the challenges of making progress in a capital-driven society and the importance of tackling hard problems.

“this whole concept yeah so the thinking behind it is that we can actually do a lot of really, really cool stuff and build a better experience because we have our own hardware, right?”

The Challenge of Esoteric Knowledge in Tech

42:00 to 43:26

Discussing the scarcity of specialized knowledge in tech and its implications.

“And so another reason and like, you know, we're not here using investor money to like fulfill this like, you know, philosophical like burden or whatever, right?”

Innovative Management Structures at Railway

43:26 to 45:40

Exploring the unique managerial strategies implemented within Railway.

“What are some bad ideas that we had that we did?”

Navigating Growth and Funding

45:40 to 47:58

Insights on balancing rapid growth and investor relations at Railway.

“And so when you think about that from like a cultural perspective, it's like, how could they possibly understand the most operandi of that company?”

Cultivating Autonomy in Startup Teams

47:58 to 53:11

How Railway fosters an environment where employees are empowered to solve problems autonomously.

“or your RSUs at 500 million versus 50, you've taken out 10X upside from them and the interest in joining, like the opportunity that they get from joining.”

Defining and Steering Company Culture

53:11 to 56:00

Understanding how culture develops in a startup and the role of the founder in shaping it.

“It is a blank canvas for you to go in and push forward.”

Understanding Company Culture

56:00 to 58:24

Explore how company culture is formed and the role of founders in shaping it.

“And so you can almost like quantify those, like either problems or opportunities as like, we want to be here, and we're here.”

Identifying Core Values

58:24 to 1:01:13

Learn about the significance of defining core values and their impact on culture.

“work to quantify what that culture is, right?”

Building in Public and Creating Luck

1:01:13 to 1:03:10

Discuss the concept of building in public and creating opportunities through visibility.

Innovative Remote Work Structures

1:03:10 to 1:06:14

Examine how remote work structures differ and the challenges they present.

Evolving Management Practices

1:06:14 to 1:10:06

Discuss the need for evolving management practices in fast-growing companies.

Organizational Design Challenges in Startups

1:10:06 to 1:12:26

Explore the common pitfalls in managing hyper-growth startups and the need for effective management structures.

“And two, actually, it's like, one of the number one complaints that I hear from employees who have gone through like hyper growth periods, right?”

Innovative Management Practices

1:12:26 to 1:13:46

Learn about unique management strategies from companies like Amazon and Netflix that enhance team effectiveness.

“If you've read the No Rules Rules book, there's a lot of really, really solid stuff in there.”

The Importance of Taking Weekends Off

1:13:46 to 1:17:04

Understand the reasoning behind avoiding weekend work for better productivity and reflection.

“Or I had this deadline and I was behind it.”

Cultural Expectations Around Work Ethic

1:17:04 to 1:19:10

Discuss the pressure to work overtime in Silicon Valley and its impact on productivity and creativity.

“Like you live for the weekend because you make your week so efficient and so good that you can take the weekend off.”

Strategic Focus: Avoiding AI Competition

1:19:10 to 1:21:06

Dive into decision-making strategies regarding investment in AI and the importance of staying focused on core strengths.

“So I think that that's kind of more where it's kind of like gravitated towards.”

Learning from Successful Leaders

1:21:06 to 1:23:44

Discover insights on leadership and patience from influential figures like Mark Zuckerberg.

“I don't really have like like founders or whatever.”

User-Centric Product Development

1:23:44 to 1:24:06

Explore how to prioritize user feedback in product development to create solutions that meet genuine needs.

“And it's not really like a thing, but like I think Mark has like really, really, really good patience and really, really good identification of like things that are important, right?”

The Importance of Timing in Product Development

1:24:06 to 1:25:55

Learn how patience and strategic timing can enhance product roadmaps.

“So they have the patience to go and wait out for like a ton, a ton of time so that they can potentially be first in this market and just kind of like way around.”

Jake Cooper's Online Presence

1:25:56 to 1:26:56

Discover where to find Jake Cooper online and his writing habits.

“Actually, I might have written something a little while ago.”

Upcoming Episodes and Closing Remarks

1:27:15 to 1:28:02

Get a preview of upcoming episodes and the host's gratitude to listeners.

“And the week before that with Grant Lee on how Gamma grew to over 50 million in ARR with only 30 employees.”
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Transcript

Automatic transcript. May contain errors.

0:00There's only two modes, hard problems, doing hard things. We want to make it as cheap as possible in both time and money, saving a ton of time to go and spit up these things and then only paying for what you actually use when you're going and doing that. We want you to spend as little time as possible on the kind of configuration, drudge work, etc. So that you can actually go out and build the thing you actually wanted to go out and do, right? Like we won't start a business to go and learn about Antwerp or Kubernetes or any of this other thing. But current generation of software, if you want to start a business that will actually kind of like scale for you, you do have to go and learn these things, right?

0:30Unless you use, you know, the tools that we were building so that you can actually spend all of the time working on the actual problem that you started your business to solve.

0:38Turner Novak:Welcome to The Peel. I'm your host, Turner Novak, founder of Banana Capital. Today's guest is Jake Cooper, founder of Railway. We make all of that stuff that you would need to potentially retain somebody to go and manage those things. You can just do it yourself. Jake has grown Railway to mid eight figures in revenue, and our conversation gets into how they solve the hardest problems in dev tools and the importance of backend infrastructure in AI native software. In the age of AI, there's a very, very material risk of being out executed by your competitors because they are moving so quickly. Railway has made a bunch of creative and bold product bets, like enabling users to create templates, earning a revenue share when other people use them, and building their own data centers and cloud service.

1:16We want to be as quick as possible and racking our own allows us to move even closer to that kind of like metal.

1:23Turner Novak:We talked about how Railway fully ramps new hires in four weeks. Nobody joins a startup to be told what to do. They join a startup to work on hard problems. Using Discord instead of Slack. What hyper growth companies get wrong on org design. It's really, really important to have operators be also managers. And why you shouldn't always work on the weekend. Horsepower gets you a lot of the way, but at a certain point, you need to refine your technique. And if you're working all the time, you don't really have a space to figure out where you essentially lost time. A quick thank you to Angelo at Railway and Erica at Redpoint for helping brainstorm topics for Jake.

1:59Turner Novak:A reminder, I publish two episodes of The Peel every week, exploring the world's greatest startup stories, just like this one. Before we talk to Jake, we have to talk about RAMP. If you're running a finance team, you know how much time gets wasted on expense management. Chasing receipts, categorizing transactions, waiting for expense reports, it adds up quickly. RAMP handles all of this automatically. RAMP is a corporate card and expense management platform that over 40 ,000 companies like Shopify, CBRE, and Stripe are using to streamline their financial operations. But here's what makes their corporate card different.

2:32Turner Novak:Every transaction gets automatically categorized and matched to receipts. No more wondering what that$47 charge was for three weeks later. You can set spending controls, get real-time alerts, and even block certain merchant categories. It's like having a finance team member embedded in every purchase. That's pretty cool. The platform also integrates with your accounting system and ERP, so everything flows through without manual data entry. It's like having a finance team member embedded in every purchase. The platform integrates with your accounting system and ERP, so everything flows through without any manual data entry.

3:05Turner Novak:That's pretty cool. Whether you're issuing cards to a few employees or managing spend across departments, Ramp gives you visibility and control without the paperwork. Stop chasing receipts. Check out ramp.com slash the peel. Get$250 and see what a corporate card can actually do for you. Time is money. Save both with Ramp. Jake, welcome to the show. Thanks for having me. Yeah, thanks for coming. I think this will be fun. Really quick, for people who don't know, I've heard Railway described as solving the hardest problem in DevTools. What is that? Actually, and then what is Railway? Yeah, so I think it's like the intersection of a lot of hard problems.

3:44And so that's what makes it quite difficult. So we are really easy to use cloud platform. You kind of just go to dev.new or railway.com. You start almost like kind of skewing out the things that you want. You say, give me Postgres, deploy my GitHub repository, give me a starter Python app, you know, start writing some code, et cetera. And we, as the underlying kind of infrastructure or cloud provider will automatically go in and kind of provision those resources for you. So we solve a lot of really, really hard problems in terms of delivering user experience to users. When people think about like cloud infrastructure, they think of like servers and like Kubernetes and like, you know, YAML and all of these other like complicated kind of things.

4:21And we try and abstract a lot of those things into really, really easy to use infrastructure by starting on a lot of the user experience stuff and ending all the way at building our own data centers to power a lot of that experience.

4:31Turner Novak:So there's a lot of hard problems in between, whether they're user experience problems, infrastructure problems, configuration management problems, versioning, deployment, rollouts, kind of stuff like that, live infrastructure. So pre-Railway, what was I doing to do all this stuff? What did the world kind of look like? Yeah, so a lot of it runs on things like Terraform. So you'll go and basically write your infrastructure as code, and then you'll be able to kind of like roll out and apply it, right? which requires you to know every knob, bell, whistle, config, etc. So you'll pull in kind of a definition.

5:05You'll go and set the properties you want to go in and do. Usually you end up doing this actually after you've kind of explored some of the really, really complicated cloud dashboards that Google or Amazon or whatever have. You have to figure out how to like version your config when you work on Teams and go and like roll out these kind of services. There's a little bit of kind of like knowledge or stuff you have to kind of like know as you're going. to roll them out. So like, how do you do things like blue-green deployments, which is, you know, I will cut, I will spin up a new version of the service, I'll let it kind of like warm up, and then I will like seamlessly cut the traffic so that whenever you deploy new versions of your code, the thing doesn't go down, right?

5:43So those are things that you have to kind of know the underlying bells, bells, whistles, et cetera. And for us, the alternative is you just give us your GitHub repository, we will go and roll it out for you, and then we will go and automatically manage things like that and slowly expose all of those nods, bells, and whistles instead of you having to kind of like swallow the whole thing at once, you know?

6:01Turner Novak:So for someone who's maybe confused with a lot of the technical terminology that you just said, the idea is that you make it super simple to do a lot of these more complicated, disparate, traditionally separate and harder to kind of orchestrate all together infrastructure things and you kind of tie it into one easy to use platform. Yep, exactly right. We make all of that stuff that you would need to potentially retain somebody to go and manage those things. You can just do it yourself by saying, hey, I've just I've got this thing that I had working locally on my machine, I wrote a little web server, it returns, you know, my gym sessions or my to do this or anything else like that, I'm going to go and deploy it, right.

6:36And you can deploy databases, you can deploy functions, you can deploy pretty much anything, right. And we make it trivial to not just deploy simple stuff, but everything under the hood so that you can scale to infinity.

6:48Turner Novak:Why'd you call it railway? There's a couple like different reasons for that. I really like the kind of like infrastructure, almost like monopoly utilities thing, because railway is basically a utilities company for the modern web we want to make it so that you can spin up everything super trivially you just only pay for what you use and it's just a thing that kind of like slides into the background right it doesn't need to be crazy or insane or anything else like that it just kind of works right and so trains are really really solid from an infrastructure perspective really easy to like get around etc and so yeah that was a good one but there's also you know kind of a nod to like ruby on rails or anything else like that in there so there's a couple like things interesting i didn't think of that one in a sense and you said you said think about cheaper to you so what's the value prop is it that you're saving time is it i'm cutting costs by using railway like why would i use it yeah so we want to make it as cheap as possible in both time and money right so saving a ton of time to go and spit up these things and then only paying for what you actually use when you're going and doing that right we want you to spend as little time as possible on the kind of configuration, drudge work, et cetera, so that you can actually go out and build the thing you actually wanted to go out and do, right?

7:57Like, we won't start a business to go and learn about Ansible or Kubernetes or any of this other thing, but current generation of software, if you want to start a business that will actually kind of scale for you, you do have to go and learn these things, right? Unless you use the tools that we were building so that you can actually spend all of the time working on the actual problem that you started your business to solve.

8:15Turner Novak:So when you were starting this, well, with kind of order of operations like what do you start with because i think when i think like all the things you kind of do are sort of separate companies and separate products so you sort of have to build all those different things like how did you get this initially off the ground was like certain things you started with like what was kind of the process of doing that yeah so i started with the thing that i thought would be the hardest if that makes sense um because i was like cool if we can actually solve this then we have a really really good shot at solving all of the other stuff um Turns out I was really dumb and a lot of hard things.

8:47So what I thought was hard was actually, you know, it's still hard.

8:50Turner Novak:It was like the easiest thing. Yeah, well, it wasn't the easiest, right? But it was definitely somewhere in the middle. Maybe on the like, you know, 75 percentile. So if you go back, would you do a different thing first? I don't think so. I'm a big believer in the butterfly effect. I think things are going well, so I wouldn't mess up anything in general. So we were kind of, the thing that I started with was like databases, right? And so databases are actually pretty hard. Like stable storage ends up being actually quite difficult on the, you know, almost like iceberg of like complicated infrastructure things right because you know people have data in their databases and if you lose the data in your database then you have a terrible time or whatever right so i started with that um because i was trying to spin up a bunch of different side projects and every single time i was like oh i want to use side projects or something like that um i'd have to like wait essentially and like go and spin up something in the aws dashboard and then configure you know like any sort of like firewall rules or anything else like that to like get this working so i was like oh man there's got to be a better away right so i started with like a really crappy script uh that just ran on a box i could call the endpoint and it would spin up a database um and then i just kept using that and then as i was kind of iterating through different ideas for like stuff i wanted to work on i just kept expanding this kind of like script and people were like oh this is super cool like you know i kind of spin up like not just postgres i was like yeah sure why not right and so then they started using it and then i was like okay well like you know i'll just like launch it on twitter or whatever and like people can use it so push it out and then people thought it was super cool um and then um i like basically asked, I was like, okay, well, like if I'm, I want to work on this thing, this is like where I think that I'm going to go in general, who's working on this, right?

10:17So I went around to a lot of different people, you know, I went around to like Jason Warner, who was the CEO of like GitHub at the time, and now it's working on poolside. I was like, hey, Jason, you know, like, are, were y 'all working on this? And he was like, yeah, like, you know, something's got moved around as we like, you know, absorb into, you know, from GitHub to Microsoft, but this is super cool. Like, we don't, we're not actually actively working on this. I think it's awesome. You know, you want to take an angel check right and so i went around to a bunch of different people and at the end of it i had like no job offers but like a bunch of commits for an angel check

10:45Turner Novak:so i was like okay like let's let's see where this goes do we were actually trying to get a job sort of in this process i wanted to work on this thing right and i was like okay well like i know i'll start a company at some point in general but just tell me where i can work on the cool problem and i'll just work on a cool problem you wanted to join a company and build this well i just wanted to build this i didn't i didn't really care right in general i was like okay this seems good seems like a thing that you know it's pretty evident people are gonna want it etc somebody must be building this right um and then you know went around couldn't find anybody who's like actually working on it from the angle that i wanted to so i was just like okay well like let's just run with it because you kind of think like should if it's all these different features that sort of already exist all these different places like shouldn't someone have started to expand what they did and start to kind of do the real like your thesis of like someone else should do this did you know why it didn't already exist i think it was like kind of a good enough thing if that makes sense right like this has all the things you need like in aggregate right like it is the everything store right and i don't think people were building software at the rate that they are right now and i think especially with the ai stuff it's accelerated a lot of those things and so we're seeing like massive massive uptick in terms of people who are using and starting to use on railway like we've we've like five extra top of fun in the last like six months so like tons and tons of people are signing up because the rate of iteration software is growing so quickly and now those old primitives like really aren't keeping up right if somebody wants to kind of like vibe code a um you know some sort of thing and then they slam into ansible kubernetes etc they're just gonna be like what do i do right like and they're like there's i don't know if you've seen it but like there's people on the like some subreddit being like hey like how do i not lose my like progress for like the last six months you know like cursor just erase it and it's like oh my god these people like they don't know git like they just they don't get or like versioning or any of the underlying things right so there's this whole kind of oasis or like ocean of people that are like coming to go and build software whether they are people who are trying who are already software engineers moving a lot quicker or new software engineers trying to build something and they're always looking for like something something way quicker right because the iteration loop has gotten so much so much tighter with a lot of the like ai tooling right so if you're like a back-end pro, you're like the Guilfoyle in Silicon Valley, you might see where you're like, I don't need that, I can yield all this.

12:58Turner Novak:But that's probably a pretty small percentage of people. The average person starting a company, I feel like most people are not back-end experts. Yeah. Yeah, yeah. So, the long tail of people who would not be suited for railway is diminishing by the day basically, because we can deploy anything now, right? Actually, anything asked for us. We can't deploy GPU infrastructure just yet. Yeah. But like that is kind of like dwindling, right? And so too is the market growing of people who are just saying, I just want to move a lot quicker, right? And so as our capability kind of gets significantly better and better and better, and those people wanting to deploy faster and faster and faster, we're reaching this kind of inflection point where most people are actually almost capitulating out of that like older mechanism of like building software and moving into the realm of the thing that we've built, right?

13:45So that's super cool because I think for a long while, we're building a thing and, you know, we go and like pitch it to like VCs and they'd be like, well, like, you know, what problem is it solving? It's like, well, software infrastructure sucks. And you're like, yeah, but like, you know, tell me more about this thing. Right. And now it's people want to move significantly quicker. And in the age of AI, there's almost like a very, very material risk of like being out executed by your competitors because they are moving so quickly.

14:09Turner Novak:And if you don't have the tooling or infrastructure to move at that pace, you're going to get left behind. Right. So now we're in kind of a more interesting spot where it's like, oh, people are moving because it is simultaneously cheaper and faster to use the tools that we've built. And it seems like probably at first you would, getting a big customer, like a bigger enterprise or mid-market business switch over may have been hard. Like it was just like, you kind of got to get somebody starting a company to start building on it. But then is it now it's like a little bit, you're seeing people actually switch and bring their whole like re-architect their entire system on top of real way?

14:42Yeah, so the nice thing is, is that we support all existing open source primitives, right? And so you can actually just go and import things from existing infrastructure you have, right? You have Docker files, that's fine. You have your code base, we can go and automatically go in and detect these things, et cetera. We can import just various different kind of configuration files to kind of automatically import you, right?

15:00Turner Novak:So you don't have to do too much of that in general. So bigger companies, then the benefit actually in this is that nobody wholesale cuts their infrastructure. They just like, they don't do it. Wait, so what does that mean? Like nobody's just going to basically show up and say, well, I spend$2 million a month on AWS us and i want to move all of it over here next week right they just don't do it so it's just like let's just try let's just dig into and set this up like one team use for this while somebody the the way that it usually happens is somebody either hears about us or ari starts bringing it inside the organization for some sort of like either tiger team project or thing that they were like you know wanting to spin up internally and so they ran into essentially this like platform team edge of like this team potentially internally that you know manages all of the this tooling, they've exposed them in various different ways, that ends up being cumbersome.

15:50And that's through no fault of the platform tooling. That's actually the underlying infrastructure. The infrastructure that they are trying to abstract is very, very difficult, and in my opinion, is almost unabstractable. It is at its most baseline form the least complicated you could make that infrastructure. So any attempt to move around actually just ends up pushing the complexity around. So these teams who would end up otherwise spinning up things on that infrastructure can't, right? So they're looking for a new way to kind of move things around. So they'll spin up something on Railway just to kind of start it and then go from there, right?

16:23And so that's what easily happens. Somebody spins it up, it grows inside a little bit in the organization. And then at some point, you know, the OPSEC antibodies of the organization basically say like, oh, what is this tool? It's not like on an approved list or anything else like that. But that gets us into a sales conversation with the other, the people at the company because there's hard things running on it because it was so easy to go and spin up anything on it.

16:43Turner Novak:So then going back to when you were first kind of going through this process of like sort of a side project, kind of became a company, I mean, you got a lot of really impressive people to kind of invest early on. Did they invest before you had a fully baked product and vision and like customer signed up? Or was it like kind of like kind of parallel path that? How did that kind of play out? So, yeah, it was, they definitely invested. like the demo I gave them was one Postgres instance with a shared user so if anybody actually just got into it and like ran anything on it they could just nuke the entire database so it was like really really poorly fleshed out in general so it was like just the inklings just like a bit of that like almost aha moment of oh I can do this thing and here's how I do it in the future and that was kind of the demo that we we went forward with um and as for how we found them I think it was like x or stuff like that i was just like doing the build in public thing sharing etc and then and i said oh if i were to actually go in and raise money uh for this thing who who should i like talk to in general right so is your approach like hey turner i'm raising money like please invest what was your approach it was more like i am building this interesting thing here is this interesting thing who would be interested in giving money money to me to build this interesting thing right and then i had a bunch of people like you know tom preston warner who's really really lovely he like raised his hand in the comment i was like oh we should just chat right like oh my god i love i love twitter or x or whatever right it's just like this bridge that like brings a ton of people together right so it was it was a lot of that honestly of people just kind of putting up their hand or me seeking them out from that like job offer perspective of like you know those two things and then at the end you know we had about half a million dollars worth of angel commits and then it kind of just all came together in that and then started doing it.

18:31Turner Novak:Would you recommend approaching it more like that? When you're getting that first round, we need a million bucks, whatever the number is to get off the ground, like less of a, hey, I need money. Like you're talking to people in the context of like, I'm fundraising, please invest. Treat it more of like a kind of looking for advice, looking for how to unlock, maybe meeting new people. Would you approach it more that way? That's generally the approach that you took, it seems like. yeah so i think this is this is a philosophy that i have just generally it's almost like you should delay delay delay and then just go all in right like it's it's almost you want to wait until you're really really confident and then you know you just be really really confident and almost like turn on a dime right um so like as an example like wasn't super into any of the ai kind of like stuff as really as basically like this i think january basically is when i started kind of just really like digging into it and then i like thought i was like oh this is like really really cool and it will work and i see the way that'll work and i see the way this is going to break in general for a lot of stuff but at least it's it's like solid enough ground to like build basis on right so in the same vein i think that you should continue to work on your project and make sure that it's kind of like going to be something that you're actually going to want to spend like worst case scenario three to five years on you know best case scenario like 10 to 15 years on or whatever right because that's that's how long it is right like it's it's a long journey to be able to like go in and build something etc right and once you raise money like you're you're essentially committing to run that gambit right you are committing to deploy the capital run after the strategy go and build the team etc raise more capital increase the team increase the team right it's it's once you step on the treadmill you are you are on the treadmill right um and you should you should know that you're going to continue to go and do that and that's when you're kind of like marathon starts in general right and there are i think a lot of candidly just like angels out there who are like they're i know there's that whole meme of like VCs want to be helpful, right?

20:21But angels, I think genuinely, like, they, some of them feel like they got lucky with a lot of their hard work. And, you know, obviously, they've thrown a lot of hard work to it. But they now have, you know, money in spades that they want to actually like go and almost like pay it forward, right? So they're potentially looking to like, say, okay, there's, you know, these, these people who are really, really hungry, just as I was, etc, ready

20:41Turner Novak:to like go on the journey, how can I potentially go in and help them, right? And we've had, you know, the fortune of working with those, those people who, you know, just want to pay it forward, right so that's awesome when you mentioned you were sort of resisting ai like you're like you know i don't know but then it was suddenly like a flip switch so what's been going since chat gpt launch what's been your evolution of thought process on everything ai yeah so my evolution of thought process was like that's just funny because my roommate's been out of open air for like the last seven years so i'm sitting here being like it's cool man or whatever right and And then he's like, non-profit, like, come on.

21:19Yeah, it's fine, right? We go to the site like every month and there's, yeah, like, how's it working? Okay, cool, right? Like, wonder when that thing will like, calm down or whatever. And then at some point it was basically just like, oh, I started using it for a bunch of different things. I think, you know, I think I honestly was probably holding it wrong, if that makes sense, right? Like you were, you were not using it appropriately

21:39Turner Novak:or you like, didn't know how to take it. Yes, you're one of those people when we see those threads, it's like 99 % of people are using chat GPT wrong. Yes. You remember those? This was like a long time ago. So you didn't read those threads, obviously. Dude, if I'd be so powerful, if I could read. If I could read anything, you know, like it's just, I miss things like that, right? So yeah, it was one of those things where I think simultaneously it crossed two bridges in my mind. It got sufficiently good where I could outsource small pieces of work or anything else like that. And I got a good enough flow on it where, and this is still my flow to this day, which is I ask it to do something.

22:14I am very, very concrete about it. I already know how to solve the problem. I don't ask AI to do that. Like, I don't know how to go in and do. I only ask it to do things that I already know how to go in and do so that I can gut check it, et cetera, right? So for me, it was a lot of like, I tried to ask it to like solve things and like various different levels of success. And I would also just end up with like a ton of stuff, right? So a lot of the interesting stuff that's happening right now in my mind is actually, you know people talk a lot about the greenfield stuff right like i can go from nothing to to-do list app or whatever right i actually found that like not that interesting because i actually want to set up the initial scaffolding because i want to know how it works in general and then i want to ask ai to fill out something way quicker than i would right and so like as a very reductive

22:58Turner Novak:example i would be like parallelize this for loop right for me like this is blocking like i need you to actually just like parallelize this i already know how that's going to work in general right i can save a ton of time i'm just like how do i like write the the keystrokes or whatever right And so I've been using it to various degrees on that, where I'm just like, okay, I'm going to write down an RFC on how to do this database migration. We're going to move sessions from Postgres to Redis. This is how it's going to work. And then I just hand it to Claude or Cursor or whatever. And I say, do the first step.

23:27That's our first pull request. Come back to me, et cetera. Very, very deliberate. So it's almost that outsourcing to a junior engineer that is a bit more concrete type of person.

23:37Turner Novak:So you just said junior engineer. I feel like before it was like I was searching to an intern or like a shitty intern but I feel like that's kind of how I initially when all these people explaining what they're using Jash 50 for and I would try it and I would be like it's kind of like when you like the intern that you kind of hope doesn't get a return offer and like leaves and like they aren't very good it's like that's kind of my was my relationship where it was like it wasn't a good product but you could see that it was getting better and I feel like probably to your point within the past six months nine months for the things I kind of use for, I'm like, ah, it's actually pretty good.

24:12Turner Novak:Like, it's actually usable. Like, this is interesting in, like, a work product. I think, like, it's always been, like, better Google. Like, that's always kind of been there. Like, it works for that or whatever. Yeah, I feel like in the last, probably, probably, like, since very early this year, late last year, I've noticed the same thing. Where it's, like, you can actually rely on it. Yep, it's good. It's, like, it's, it's, like, a bionicle arm that once in a while just malfunctions. But it malfunctions in ways where you can be, like, oh, okay, like, stop. Like, just don't, don't do that. right so the way that i've taken to it is basically saying can you one or two shot this task and if you fall off the rails too quickly i'm just gonna bail and just like do this myself i do that too too right and so like that's the utility that i actually sound like really really good for it because it's like it's almost a separation of concerns right like when i try and like work with it to solve a hard problem it's like me and claude are sharing one brain cell and it's like really not a great time and for both like but you know right so like you're trying to figure it out together yeah we're trying to figure it together blind people like wandering through the dark moving around where you're just like okay right and so that i haven't found like you know great success on it but you know separation of concerns the like you know splitting of the like i think it's a bicameral mind of again where you basically say do this for me okay i'll do that for you right like that is actually kind of you know worked quite well right so yeah so i know you're really big on automating things and like just getting leverage and automate like it do you use ai for that are there like other ways to automate things like how could how should somebody think about trying to do that, getting more leverage from automation?

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25:39One thing that I say often is grit, process, repeat. So don't try and automate things right off the bat, right? There's that like very famous XTCD, which is like you automate like very small task that happens very infrequently, but it takes you an entire week to go in and do. It's like, well, that's a waste of time, right? Like you're just, you're not going to get a return on investment there, right? So we talk about leverage. I'm looking for opportunities that I can put in a bit and get a lot out of it, right? And so running that calculus on every single thing that you can actually go in and do, that helps us kind of like quantify leverage.

26:11Turner Novak:So I think there's a lot of different spots. And I think like, you know, the reason people really, really like AI is because you put in a little and you get out a lot. Right. And so this is kind of your equation, regardless of whether you're using AI to go and do this thing. Right. Like put in a little, get a lot. Right. Have there been any examples where like personally or internally that you guys have gotten the most leverage? which the one that I reach for often, and people are like, wait, this is nuts, is we built our own support tooling. There's a couple of startups that do that. There are a couple of startups that do that.

26:44Turner Novak:There's also, when you look at the whole meme of AI is going to replace all software, that's a common example. We built our own support system. Yes, exactly, right? So we built our own support system, and it's awesome. I was using it the other day, and it's a bit of a mess internally. this last quarter because we've been like pushing a ton on like growth and like also like turning off a bunch of our like google cloud machines to move to our own like bare metal infrastructure so it's been like a total zoo from just like people have questions you know stuff like that right and we built this system that's like i feel like i'm like basically playing like starcraft like like it's like high apm like gaming where i'm just like in there just like in the support system in the support system and it's genuinely it's like it's a deeply wonderful experience where you're just like tearing through this thing, right?

27:29And you're just like, it's this. I've got like macros for like common questions. I've got like a little AI prompt on the side that like gives me context on like the thread. And all of this is like stuff that we've built internally, right? And so like, this is a thing where, you know, we have a million users.

27:43Turner Novak:We have three support people, right? And we all rotate like kind of like throughout the queue, but we build a system so that we can actually go and operate and like figure out how quickly can we get back to these users with the level of quality that we really, really need, right? Because for a time, we were actually like really, really bad at support. Like people would give us tickets and it would take like five or six days to like respond on some of these things. It was awful, right? And we looked at this thing. We're like, damn, this is horrible. You know, totally understand where customers are coming from, et cetera.

28:11I was like, how do we get to 24-hour SLA on everything, right? And then like lower than 24 hours on like enterprise and anything else like that, right? So we build all of the tooling around that, right? Some of that is AI. Some of that is like building these things ourselves. Some of it is like, you know, just doing like solving hard problems of like design and engineering so that you can actually gain all the context you need. Because Railway is interesting because since you can deploy anything, people ask a lot of questions about a lot of disparate things. Right. And so trying to figure out ways that you can kind of like pool together knowledge or like start putting people together in the community.

28:42Right. Like we can't answer every single Python question. Right. Like we just it's just untenable. Right. So how do we give these people like topics or, you know, we have these things called bounties in the community now where it's like, oh, cool. if you're having like throughput issues on Python or anything else like that, we can actually go and kick it to kind of like a queue of people in the community who are going around and solving these bounty questions. They get paid every single time they go and solve any of these problems. And we also go and push those people together. So it's like, oh, that person is like an expert on Python, right?

29:09So the Python questions are actually getting routed specifically to that person and they can go and help and solve those things, right?

29:15Turner Novak:So is there like a internal forum or something somewhere? Or, okay. Yep. we're like maybe maybe a contrarian take that we have is like forms unfortunately like have come the way of the dinosaur and everything's been kind of like pulled into like discord communities so there's not a ton of stuff that's indexed right so we'd actually went out and build a ton of tooling around like indexing these threads writing users together pulling any telemetry and information from actually any of the railway projects to say oh this person is deploying python and they've recently kind of done these things etc these are all hints of like how we could actually potentially solve the problem for them do you build like a lot of custom stuff it sounds like but it's it's not core to the actual railway product like how have you rationalized let's build this cool interesting unique thing versus let's just buy one of the dai customer support like is there forum software out there like how did you decide on what to do there so i guess for us it was what are like other people bad at almost that's like an arm for us basically right and so what are your competitors bad at i wouldn't say competitors necessarily but almost like what is the industry as a whole bad at right like software infrastructure as an industry right like add customer support i don't think they're very good at customer support i don't think they're very good at you know developer experience etc so ease of use all those other things um and i don't think they're good at speed right so we've chosen to invest really really deeply in all three of those and have them all kind of like essentially feed into each other right so our customer support experience is a product experience that we design.

30:46We work in it in-house, our designers work on it and our engineers work on it. Everybody works on it because it's part of the product. Right. So that's kind of tied in there and it's fast, right? Like you should be impressed with the level of support that you get and you should be impressed with the product. And now we routinely have people being, what is this piece of software? Like, how did you get, like, is this open source? And we're like, no, we built this. Right.

31:03Turner Novak:Would you ever open source it or sell it? Well, what we'd like to do at some point is actually bring more, you know, we're having conversations with companies to bring them onto the platform as like almost a discussion space because you see a lot of these things where people are like how do i get the voice in my community how do i go and do all this other stuff right what we can do because we have all of the telemetry we can figure out let's say you publish a new version of your software you go and send it to the community now you have issues etc we can take all the stack traces anonymize them and go and send them back to you and say hey listen on this version of redis or on this version of whatever you introduced a bug on this line, you should go ahead and fix it.

31:39And it's now affecting these 10 ,000 people. Here's a funnel right to these 10 ,000 people if you want to talk with them and figure out actually how to solve, reproduce, et cetera, these things. So those are things that I don't know if we would actually sell this offer outright, but we want to basically make sure that it's not just a cost center, but actually a revenue generation center. And it is because we do an open source kickback program. So if you host anything on Railway and you go and build the template for it, you get 25 % of any of the revenue that you go in that people get when they did or that we get when people go and deploy that piece of software

32:12Turner Novak:oh interesting so it's almost like the notion template type strategy for infrastructure right yeah the figma plugins or anything like that yeah interesting okay uh and then like so we talked about like super like complex complicated product we started with just databases like how did you think about expanding over time like any key product decisions that you feel like you've made it's a lot of the same thing that i mentioned previously which is like no no no fuck yes let's do it right so this listening to the users not necessarily saying we're going to ship everything right because we don't want to make like software nachos we want to make like actually a really really solid product it's a software nacho well it's like everything in the sun you're just adding everything to it um it's it's from like the bear right like when there's a there's a chef that's basically the restaurant show yeah right where it's like he's working on fine dining thing and you know the chef is basically like you made nachos right this is like not a fine dining experience right so we want to make something that's a very very like you know like concrete and deliberate and you know it is this thing right so that's that's kind of what we want to go and do from that perspective what was there a point when you felt like things were really starting to work like customer like there's like almost like a tipping point in business modeling some like finding pmf it was like a certain thing where it's like holy shit i think railway is like a thing like this is going to be like a pretty big like it's really working yeah i i would say honestly it's in like the last six months where it's it's like you know we had a conversation with the team where I was basically like, the oil rig is set up.

33:38Like we can run this thing straight upward, right? We just make it faster for people to build and deploy software. We make the experience better. We go and push towards this vision that we have of a unified new way to kind of like build software. This can definitely work, right? And we're seeing it now. We're seeing it with the inflection point of so many new people kind of like coming onto the platform and trying to build and deploy something, right? and then running to edges of the platform

34:04Turner Novak:that we're like, oh man, I guess we gotta fix that, you know, right? But it's just so many like new people just doing this, right? Where it's starting to, you know, really kind of like take off in my mind, right? So it's the like, it's the closest to product market fit I've ever felt. So, but it only keeps getting crazier, right? So I'd say it's like, it just keeps going. One thing you mentioned, you built your own data centers. Yes. this is a railway metal t-shirt it's like metal and it spells real yeah okay so maybe that's the answer to this question and maybe it's like one of a couple answers to this question but what do you feel have been some of the more bold product decisions that you've made over the past couple years i would say metal is really like one of them making one click infrastructure and templates is another one that like is paying off we have like people in the community making like six figures off of these templates right so they're like actually getting like okay so so what is it's like a back-end template like if i want to do this and i'm listening like holy shit i can make six figures a year making real templates like what am i making yeah so you know it's software that people want to go in and deploy right so whether it's like a system design kind of yeah right so if you're saying hey you know i want to start a software project and you know i write python and i want stripe and you know it's kind of like these boiler boilerplate things that people have like gone and built right um or it could be like packaged versions of software that requires a little bit of kind of like almost like DevOps handholding to go in and spin up and scale.

35:34So like we provide the tooling for it. You kind of consume this package in a way that you are none the wiser of how it should scale. And then the person kind of like maintaining it actually goes and figures out how this thing should scale over time, right? Like, so like, you know, self-hosted click house or like N8N or like plausible or any of those other things, right? And so it can start with some community version of the thing being hosted and then it can kind of move towards like a first party version of you know redis or click house or whatever like hosting their their self-hosted distribution on railway right so if i'm using

36:07Turner Novak:someone's template and they make a change to the template does it change my infrastructure setup no so you get a you get you get a notification that there's a new version of it right and so you can go and consume that right you can go and read about the changes you can go and see all of those things in there right i want to accept their change of like they figured out a way to actually speed something up by changing like 25 faster on you know workloads for like asynchronous rights or something like that right and then you're saying oh okay cool i've had those issues in general right so instead of this being a thing where you know github is like through no fault of their own like a series of broken pointers you're basically saying okay well how do i go and get the new version of that software how do i go and update is like a home chart is like something else like as a new docker version or something figure out where they host the change log or anything else like that it's like we put all those things together so you can kind of like riffle through this like version of software and then get the latest version of it and then also pin it so that you know you go and downstream push of a version of this and then now breaks everybody's apps or anything else like that you know like versioning control for infrastructure sort of yeah and so this is the point of the earlier problem like we're solving a lot of problems it's like how do you not just like deploy your software but like how do you evolve it over time right like how do you iterate on it in a safe way right like actually at large companies most of the software outages it's not part of like a software error like you shipped a bug or anything like those big outages that happen like facebook cloudflare like whatever that's a config based outage like it's actually a property that they were trying to go roll out when they were upgrading system and just something got fucked up during the process because you know the the peek under the hood and like how the sausage is made is essentially you know there's a version of a piece of software and then there's an engineer whose job is it to like version and update that piece of software right and how that happens can range from one click really easy to like consume to i'm doing basically like open heart surgery on this like piece of software to get it from like version n to version n plus one and we automate the entire life cycle of that interesting and then you also built your own data centers yeah what was the thinking on that like do you do you have a cloud service that you're offering to people like can you just kind of explain this whole concept yeah so the thinking behind it is that we can actually do a lot of really, really cool stuff and build a better experience because we have our own hardware, right?

38:26Like we are moving from the realm of milliseconds down to like microseconds, right? That's like some sort of experience that we can actually make better. It's a portion that we can make faster, right? Like we can push the edge of that experience because we're not actually beholden to, you know, operating through the primitives that the cloud providers offer, which, you know, they're solid. But at a certain point, those things end up falling flat from both ability to drive the experience and also, you know, kind of outcomes that you'll have at scale, right?

38:59Turner Novak:So for people deploying on the railway cloud now, yeah, so it's essentially like a cloud that you can go in and deploy on, right? So yeah, the reason to go and do that is to drag the product experience forward, right? And do things that other people possibly can't. so what's an example of something that they wouldn't be able to do well so like on aws or gcd or anything else like that we can spin up workloads you know it'll take like a few seconds or anything else like that like we can get into millisecond like deploy times now right because we have a lot of our own infrastructure and it may be possible to like go in and push those things out and he ends up a lot done a lot of like really really cool work on just like spinning stuff up but it ends up being on the realm of like a second ish right and for something to be imperceptible from a user's experience perspective, you're looking to try and be in the 100 millisecond range.

39:47So we want to be as quick as possible. And racking our own services allows us to move even closer to that kind of metal of moving really, really quickly.

39:57Turner Novak:It also allows us to offer a significantly reduced price to our users because we are running our own infrastructure and because we build our own orchestrator and because we've done essentially all of the hard work of going and doing these peering relationships. so we pay for network at a metered rate instead of like a per gigabyte rate um so that allows us to drop that price significantly which is super cool in a lot of the ai workloads because they're pretty data intensive yeah that's right and you you wrote a post a couple years ago it was called it was called the inward draw of capitalism did i say that right yeah yeah that's a deep cut is this sort of related to this concept sort of in the sense that i think there's only two modes hard problems doing hard things or are they not related no so they're they're like related like at the edge basically right so the the the point of that post was that it's easier to make basically like money with money than it is to make progress with money right and we've moved because we moved out the gold standard to actually a system where we're like moving money around right and that results essentially in people you know doing jobs like being a day trader or you know a banker or like a twitch team or right like moving those things and there's nothing wrong with that in general it's just that we've made a lot of the kind of like exterior a lot more difficult to do right and so if i want to go and get a loan and like build you know uh build a factory or anything else like this is before ac steinzee and the whole like yeah it's easy now just just raise 50 million from ACCZ and build a couple of factories.

41:35Yeah. Right. So maybe, maybe I was like ahead of something or whatever, but like, if you want to go and do that, you have to go through like regulatory burden. You have to like find construction workers. You have to like go, you have to go and do all of these other things, right? There's a lot easier ways to make money. Right. But that whole point was that we're losing a lot of the like actual like fringes of, of society that allow us to kind of like push towards progress and like actually building things, right? And so another reason and like, you know, we're not here using investor money to like fulfill this like, you know, philosophical like burden or whatever, right?

42:10But we believe that there is a strong ARB in terms of doing complicated or difficult things that are almost becoming like a lost art, right? Like if you think of the people who are like racking and building data centers, right? You've like three people, AWS, GCP, Azure, right? Like those are the kinds of big people that kind of come to mind, right? And so over time, you're getting less and less and less of these people who these as are the chariotic skills and And, you know, you can extend that to kernel knowledge, right? Like you have, you know, people who are working on the like Linux kernel maintainer list, right?

42:38Like, you know, they're having difficulties getting maintainers to like have like have this knowledge and work on this thing.

42:45Turner Novak:There's a core part of like literally everything that we run on every piece of software. It's every single thing, right? And that thing is such esoteric knowledge and they're having issues pulling in maintainers and people who are going to like go in and push this thing forward, right? Like it's, it's like, it's crazy that that knowledge is kind of like getting more sparse over time. Right. I like, so you've made some of the, a lot of like pretty bold batch. Are there any other big ones that you've made and maybe any that didn't go well or didn't work or anywhere you got a lot of pushback from investors or people on the team?

43:22Turner Novak:They're like, Jake, this isn't going to work. Don't do this. What are some bad ideas that we had that we did? I mean, we spent like a million dollars on a domain, which I think was actually good, where it works well. Just the railway.com domain, right? Who owned that before? Some guy in a flyover state, you know. So I think it was funny. I looked at his LinkedIn, and he was working at some sort of company for a while, and then I think he recently retired. So I don't know if they're correlated or whatever. You've been in the domain. You paid for this guy's retiring. Yeah, who knows? Or his college fund or something.

43:57Turner Novak:um so that was good the metal data centers was solid we've done a lot of like experimental stuff in terms of like how do you build out an organization internally we talk about a leverage a lot and so you know i've tried to build out a pretty deliberate management stack internally of like how do we stay lean but also like have some level of like hierarchy so the decisions can get made there can be dear eyes there can be stakeholders you know all of those other things that you need at a company while also simultaneously avoiding a lot of the blood that comes with you know growing really really quickly or anything else like that so we've done a little bit organizational kind of like operating right like the org is still mostly flat and we have 28 people right so i essentially have like 25 people reporting right and so that's you know probably a bad idea over time and so we're kind of like lowering that the kind of like managerial burden on that as we kind of like flush it out but it also makes you know it's really really important to have operators be also managers, right?

44:57Like the worst thing that can happen is you hire a career manager who can't execute on the tasks at hand. Shit hits the fan. They can't actually kind of like step in or anything else like that to aid or help. And it makes the organization feel very, very fragile or helpless over time, right? And also from talking with a lot of people, like I was at Uber, you know, post Travis,

45:16Turner Novak:post, you know, anything. A lot of the experiences that I have from chatting with people, they were saying like, oh yeah, we like Groot really, really quickly. Like there was a year where I think they forex headcount or something like that. It was insane. Right. And so the cultural sheer that actually happened over that, that period of time was kind of nuts. Right. And you're like, yeah, it wasn't like the same company. I was like, yeah, like kind of no shit because you know, 80 % of the people after one year are new. Right. And so when you think about that from like a cultural perspective, it's like, how could they possibly understand the most operandi of that company?

45:45Right. So yeah, I think that, that we've tried to innovate a little bit on the organizational structure to try and grow, you know, our, our gold standard is we want to grow. 5X year over year, 1.5X headcount.

45:57Turner Novak:Oh, grow the business, revenue, 5X. Yeah. Metrics in general, right? Metrics, okay. Yeah. So like acquisition, top of funnel, margins, you know, stuff like that, right? You said you grew 5X in the last six months or something, right? I think you slipped that out earlier. So you guys had a plan. Yeah, well, so I had on that one and then, you know, revenue is in a really, really solid spot. We'll have doubled since the start of the year, which is great. so we're we're things are going uh i would say quite well nice what's like current state of the business you're like allowed or open to sharing publicly with people we're like in the tens of mil from like a revenue perspective so somewhere between 10 and 99 yeah basically yeah okay you know like wide range right uh so that and then we're like 28 people staying super lean we've raised some money the last announced round that we did was like a series a and like one and two or something but we raised an uncapped safe about a year ago oh interesting what was the thing you got doing that we didn't want to take any more money but people wanted to deploy capital so it was like well the only way we're gonna do it is on an uncapped safe and they're like all right wow that's how do you think about that as a founder then like do you think i should probably try to convert this for them at some point or is it like it's it's an investor we really, really like working with.

47:15So we will definitely be converting it at,

47:17Turner Novak:you know, like not egregious, you know, like we really like working together in general, right? So our philosophy is like, they wanted to put in more capital and we really, really like working with them, right? So this allows us to kind of like continue to push the business into like a really, really awesome spot as we continue to look for a potential excellent, you know, additional board partner for that, you know? Yeah, I think there's an interesting thing too about not getting your valuation too extended from a standpoint of also recruiting. Like you, let's say the business is valued on paper at 50 million and 500 million, right?

47:52Turner Novak:I have no idea how close any of this is to like the actual numbers, but like if you're trying to recruit someone and you say, hey, you're getting your options or your RSUs at 500 million versus 50, you've taken out 10X upside from them and the interest in joining, like the opportunity that they get from joining. So, you know, you want to balance that. You don't want to like delete yourself too much. you want to you know maybe make existing investors feel like they're making money and so like it's like that balance of like not getting too far ahead yeah 100 right you also want to be able to like reprice equity at some point to show it's like oh it's not just like mystery money or whatever right it's not like is there is there valuation or money exactly right and so there's actually a whole kind of like mechanics surrounding this and like what is the optimal right like even from like a employee stock option pool when you grow it when you not grow it you know like when you raise money when you not raise money all those other things right so yeah so that's where we're at right now and and talking to people just kind of before we did this a couple people said you have a philosophy around just hiring really opinionated talented people and maybe like not specifically telling them what to do but just kind of like unleashing them and like just seeing what happens and like trying to kind of guide it i guess i don't know if i'm explaining this right but yeah so what's the what's the philosophy there the philosophy is that nobody joins a startup to be told what to do they join a startup to work on hard problems and to go ahead and push themselves to like execute on hard problems so from that kind of like standpoint we're really looking for people who are like hyper autonomous right so we try and say hey we'll give you kind of like a structured onboarding, it's like eight, six weeks of like, here's how we're going to ramp you from having zero context about how the business works or anything else like that.

49:42I mean, maybe not zero because you have some of it from external or whatever, but like our operating procedure, we've written a little bit about it, but it's like very, very different when you like come and join the organization. Right. So from nothing to, I want you to do things that are like very, very important for the business, right? Like go in and start and figure out how are we going to do networking, go in and figure out, you know, maybe data center procurement, go in and like, how can we rapidly, rapidly, rapidly get you to a point where you are building real things that you are really, truly interested in?

50:11Because I believe that we're going to, you know, get the best out of people when they're really, really interested in building something, right? So I try to ask them, what thing are you interested in? How can we set you up for that immediately, right? And we're going to go and ladder your onboarding experience to get you to that point where you're going and making decisions right and so this can be actually very uncomfortable for some people who like operated a company where you know they have a manager and the manager like tells them what to go in and do right and so we've kind of like structured the process where you have two weeks of tasks you know really straightforward stuff of like go and make this change in the code base this thing is evidently broken you know here's sort of where it is right we do two weeks of problems which is we have this problem you know how are you going to go in and solve it right you'll have to put together like a little document it's called an rfc you just basically say here's

50:59Turner Novak:the problem here's requirements for the problem here's my suggested solution here's some other stuff that i've got and then the team will kind of like rally around and say okay like maybe this this these things and then you know they'll move through that and then the last two weeks is what we call opportunities which is what do you think the company needs right so within one month right we've basically stopped telling you what to go in and so this is your six month onboarding process Six weeks. Yeah, six-week onboarding process. It's specific tasks for the first two. It's problem, like figure out how to solve this problem.

51:29Turner Novak:Here's the problem. The problem is evident, and we've written it down, and we need you to solve it. There's varieties of different ways you could solve it as like a solution, et cetera, right? You would just be like, we need to grow, or like we need to set up a data center, or we need like, it's just like. Yeah, things like our observability, you know, product sucks. Like how do we fix it, right? Like these things, right? And so they're nebulous. Right. Because that's what you want early stages. You want people who are going to basically take these like nebulous things and convert them to like tractable outcomes.

51:57Right. And that's like what we're aiming to like, not like test for, but like ladder you up and basically say, hey, here's how you should be thinking about a lot of these things. Like you're trying to move the business forward in either solving immediate problems or identifying opportunities that are going to allow us to grow really, really rapidly over time. Right. So getting you to that point of like making those decisions and like identifying them and making mistakes and all the other things it's like something that we like try and teach people in general so that they can operate completely autonomously right because otherwise it's just a company is a series of you know executives ranging from like managers to like poor people like telling people what problems to like like things to do right and again i think the most awesome people that's not really how they want to like live their life in general they don't want to just like be told exactly what to go in and do.

52:46They actually want to go in and unleash themselves on where could I have the most impact, right? Like people are looking for like impact in general, right? So we can kind of almost be a conduit for that and saying, okay, here's how you can actually ladder up to having really, really awesome impact on the organization, shipping all the stuff that you've ever wanted to go building out the thing, whether it's like your sales process or your go to market or product or design or anything else like that. It is a blank canvas for you to go in and push forward.

53:15Turner Novak:So it's like more help, like making an environment where people solve problems versus complete tasks. Yes. Yep, exactly. Right. And so that's part of the whole like operating autonomously thing. Right. And that's the thing that we really, really try and hammer home because, you know, we're again trying to innovate on some of the org structures of basically saying like, how do you keep a company lean? Right. And if you have people that you're consistently like being like, hey, you know, how's that TPS report or whatever, right? Like you just need managers and people to like close these loops. And then the people are kind of like going away because it's not that interesting or anything else like that.

53:49Like part of the reason to start Railway is like it is a ocean of interesting problems, right? The other businesses, but there's some businesses that are actually like deeply boring, right? and I would far rather work on those interesting problems as an engineer or you know in my you know spare time as like trying to design things or anything else like that like those are the things that like will keep my brain occupied and so that's the space that we want to kind of like cultivate for people to come along and say oh that's really really cool I'd love to solve this thing or build this or do this thing right whether it's networking product go to market anything

54:23Turner Novak:support stuff like that so how would you gauge like something's a worthwhile problem to solve like when you when you're going through this like like you just want to solve this problem not that problem like how do you figure out what's the intensity or severity or like mission criticalness and crucial to solve of a problem versus not so we have a planning process and we're switching essentially we we went from projects previously or we just like put a bunch of projects and we're like okay roughly these will like solve these problems and we can go execute on them, shoot problems, right? And as part of that planning process, what we do is we have, we have essentially like co-sires, right?

54:58So you'll, you'll see a problem or you'll see a project previously, and you'll go ahead and you'll put your name down beside it, right? And then we will essentially stack rank and prioritize all of these things. And we will go together. And for that one week that we're actually going to go on plan, we're going to get consensus on which problems are really, really important. Let's stack rank of these problems, who like, who roughly might be a good fit to like go and solve these things. And, you know, how many do we think we can actually accomplish, right? And that kind of just like provides a list from like tip to tail.

55:27Let's start on these things. Let's go down the list and like just essentially see how far we can get on those problems, right?

55:32Turner Novak:So you kind of have like, it's like a product roadmap, like a problem roadmap. Kind of, right? But it's also kind of like fueled by, hey, we want to go in and do these things from a product perspective, right? So if this is the vision, I issue this thing what I call, I can turn away called guidance, which is, you know, it's like all the companies that issue guidance, especially on financials and whatever, right? But I issue it from like a product perspective of like, this is what we want to go in and build, right? And so if we have this expected state that we want to go in and get to, and we have our current state, like, the problem is, is that this shit doesn't deploy fast enough, or, you know, all those other kind of like problems that are along with it, right?

56:07And so you can almost like quantify those, like either problems or opportunities as like, we want to be here, and we're here. And so for us to be here, we have to solve these problems, right?

56:15Turner Novak:Do you feel like there's anything that people miss there? Like, or just generally in culture setting, like a lot of founders or startups get wrong? I mean, my hot take is like, I don't think you set your own culture. I think at best, you as a founder get to steer it and you get to clarify it, right? So you essentially say, you know, you're gonna hire some people and at some point you're gonna look up and you're gonna realize that the people that you've hired, mostly all actually have the same rough-ish kind of like core, right? And that's kind of your culture, right? And if you can figure out how to like write down what those things are that make you, you, and that make people, you know, like people who work at Railway, like really, really successful or like enjoy the work that they go and do, et cetera, like that thing is your culture, right?

57:00And you as the founder are kind of like the steward for your own culture, right? And so it's your job to identify it. It's your job to like be really, really clear about it. It's your job to like, whenever you go and chat with candidates to say, hey, this is what we are. and the entire subset of everything else is a thing that we are not right it's really really important to to quantify what you are and what you aren't right so that people have a really really good shot and i think this is a thing that i messed up really really early was that i wasn't as clear or deliberate about these things about like what made us us right two candidates right and as a result we hired people and we had to let them go at some point right and it was you know through no fault of their own it was we're not clear about this is this is our culture and this is how we operate and all these other things.

57:42And so as a result, I've like continued to issue blog post after blog post. Like, here's how we work. Here's how we think about problems. Here's how we operate, right? Like, you know, jumping in a podcast, talking about like how we're trying to like innovate and build on our structure to say, if you believe in these things and the same things that we believe that like infrastructure is stuck in like stone ages and, you know, you can build beautiful design for this and, you know, this lost art of kernel and data center and all these other things, and, you know, organizations should be filled with people who solve problems and identify opportunities instead of, like, receive tasks, then, like, you may, you know, you may be a fit for railway.

58:21Come on down.

58:22Turner Novak:Small plug. You've got to do that kind of, like, work to quantify what that culture is, right? And so for us, it's like, we have four things. We have honorable, accelerating, reliable, and direct. Say those again? Honorable, accelerating, reliable, and direct. Spells hard. and it helps you solve hard problems, right? And so whenever you're trying to decide, do I shift this thing today or do I shift this thing tomorrow? It should be accelerating. Do I tell this person this feedback? I should be direct, right? Do I show up for this thing? Am I present? Am I putting myself in a situation where I'm on call, but actually I've just left my laptop at home?

58:58I'd rather be reliable, right? And then Honor does a lot of nebulous capturing of like, well, what is honorable, right?

59:04Turner Novak:Try and figure it out generally, right? So that's kind of a cool, cool. Did you come up with it? Or like, was it like a team effort? Like, let's figure out some kind of like, you know, fortune cookie type, like, you know, acronym thing. So I came up with it because I think most values are bullshit and people go and they put them up there and it's like, what do these things mean? Right. Like at most companies, it's like, you know, ask, ask any employee the values. Right. And integrity, some shit like that. Right. It's like, it's like transparency or anything like ensure maybe those are like good things.

59:34Right. But I really, really wanted the values to have, like, deep value for people to, like, help them navigate those things, right? Like,

59:42Turner Novak:I don't know if it's a value or if it's a concept or, like, whatever, but, like, Uber has this thing called toe-stepping, right? It was, like, basically, like, you know. Yeah, right. Like, stepping on someone's toes? Yeah, right. And it was, like, a value that they had, right? They were, like, you know, right? Do or don't do it. Do it. Do it. Do the toe-stepping thing, right? I was like, what the fuck? Like, that doesn't, that's kind of rude. That's just a bad value. It's like, et cetera. But then I realized that like values for lots of people are actually almost like a lens through which you can navigate the culture a bit.

1:00:08Right. And so you can think about it. Right. And so if you think about Facebook's most like famous kind of value of like move fast and break things. It admonished anybody of any sort of almost like wrath that would they would incur because they had broken something because they could point to the culture and they could say, but we move fast and we break things. That's what that's what makes us Facebook. Right. Like and so if you have this kind of like shared tendency that you can kind of all rally around, you can say, well, you know, so and so wasn't a fit because they weren't moving fast and they weren't breaking things.

1:00:38Right. And then you layer that with multiple values, tenets there over time. And then you kind of figure out what what is you. Right. Like what makes you you as part of like the company and like the people that you kind of bring on and the people that you attract and all those other things. Right. And so you're almost like cooking this like cultural concentrate, you know.

1:00:53Turner Novak:so how would you intentionally set that out because it's not like you you messed it up a little bit or you didn't quite stick it and land it in the beginning um and it sounds like maybe most people see it as just like uh you know where our values like you know transparency integrity maybe it's like how do you how you get like the thing that actually is tangible and moves a needle and then like not make the same mistake you did no man i i wish i wish i could tell you other than like you just have to like trial and error almost right and be be really really aware of like what what do you want to i don't know give people as a value yeah it seems like values is like the things it's like acceptable that the company leads into as being its thing yeah okay yeah it's like it's a compass for like how are you going to like operate as a company right that's the way that i've looked at values in general but again i think it's one of those things where you don't really set it you hire some amount of people and at some point you realize that like that's your shared common kind of like denominator you know yeah yeah angelo on your team mentioned that you kind of like wrote your way or tweeted your way into being a founder like what is what what does that mean yeah so i i think it's a lot of that kind of build in public kind of type thing right where i'm like i'm writing you know blog posts but like you know the the inward draw of capitalism or whatever right i'm just like putting out things and feelers and all those other things you're almost like was it i think it's nival or whatever that's like you got to create the surface area for luck or whatever to like it sounds like a nival quote yeah right or something like that right so it was a lot of basically just how do i put myself in in the arena to like go in and try and like catch some of this this luck in general right and for me it was more just like a i think that anything that stands has to stand to public scrutiny or it doesn't stand at all right and so if you put yourself in that arena and you start going and putting those things out there you're going to figure out really really quickly like whether you are correct or not on a lot of these things because in a public forum like especially on the internet or whatever people are not shy to call you call you out on a lot of this stuff right so anonymous account that's nothing you'll lose it's like you're an idiot some person with an anime avatar and six you know followers can ruin your entire week you know like it just yeah and so you wrote a post and it was may of 2021 i think you actually referred to it earlier it was called how we work i think it was like how we work at railway it's just how we work yep what was the post was like the general kind of framing and and how do you work at railway yeah so this was this is like the first version of that blog post of like oh oh no like you know we've we've messed up hiring and we had to like let go of somebody and like we need to figure out a way to like not do that because like you know these are real people's lives of course right like so you don't want to do that right so i wrote a post a post called like how we work we're a remote company so we work with people you know like dubai japan spain thailand montreal you know every time zone every time zone is hit australia right like so we have to work in a different way and this is kind of like part of the we're innovating a little bit on the org structure because i think that that's really really interesting one of our investors pointed out he's like not really a lot of like big remote companies you know right like git lab is the biggest lab is kind of the the like one exception in general to like that rule but generally there isn't right and we had a conversation about why that that is in general right and there's a few kind of nuggets of basically like standard org structure doesn't work as well from that perspective you're saying like the management's like mba type org structure thinking right and and the the like short reason for this is actually like if somebody tells you something that you don't like in an office or whatever you still have to kind of show up to the office generally right like you have to kind of work etc right you continue to have to like show up to this job right if somebody if like if you're doing things that like people don't like in general as a remote work employee what do you do you close the fucking laptop you go outside right you just like basically you can you can quiet quit or you can whatever right and so essentially from an org design perspective you have to design an org which is interesting enough for people to say oh yeah like actually the reason i'm signing on the reason i'm doing like all of these things is actually because i'm really really really interested in the work right and so you had to kind of change a few of the like structurings and in that right but the how we work blog post is the first path the very elementary kind of like stuff of like this is how we work differently than most companies to combat that problem to make sure that people can kind of like continue to ship a lot of the things that they want to go to attract talent that can work on really really hard problems to make sure that we like don't have to get into that situation of like hey you have that dps report in general and the person says yeah like great and then close the laptop and like you know goes right so anything you talk a little bit about like how you've changed like cadence team design or structure related to how you work are there anything else anything else you probably want to say related to how you work you haven't kind of hit on yet it kind of makes the structure of the team and the company a little bit unique um there's a bunch of different things but i would recommend just like in the interest of time like have a look at those like more blog posts that we have in terms of how we work okay i'll um i will throw a link in the description of the show we'll get all the links and throw them down there for people and you it feels like my general takeaway was minimize meta work and maximize real work i think that seemed to be like succinctly that's kind of what you're trying to do particularly like it's a productivity like get stuff done and in specifically in a remote setting you you could create a lot of meta like you can always create a lot of meta work like work to get work done and you're like trying to remove as much as this like the work that isn't actually real work and it's like adjacent work you try to minimize how often that happens yeah we try and we try and do that right so we like do meetings on like mondays and fridays right because meetings are the number one kind of like you know contributor to a lot of that meta work right it's like it's like oh how do we solve this problem it's like well let's like let's let's have a meeting about this problem you don't solve the problem even if you have a meeting solve the problem you don't actually solve the problem in the meeting because you didn't ratify that decision by pulling it out like out somewhere where everybody could like have a look at it and it would stand to scrutiny etc like i don't know why you know i assume you know jeff bezos has you know memos because it's it concretifies those things is that whole thing that like clean memo like messy meeting or whatever right but you really really need to be concrete in the writing so that again it stands to scrutiny right there's that whole point about like powerpoints is like allows you to kind of like smear logic through the thing if you write it you have to write it you have it has to stand to scrutiny right and so you know we try and minimize the amount of like metal work and it's like okay put it together identify the problem identify the requirements be very very clear about it okay cool that's awesome right let's go and let's move on that thing right and it sounds like a lot of work but like once you get actually like reasonably good at the muscle you can crank out these like rfcs in like five minutes to do a really really complicated thing right like yeah i wrote one i don't know this week about like some sort of you know like database hardware offloading that we're going to go in and do to make like provisioning databases like way quicker and like actually like database latency for rights, right?

1:08:16Put it out in like five minutes, had some comments on it. People like, what about this thing, et cetera? I got alignment. I covered like somebody else pointed out a thing that I completely missed. I was like, oh crap, like let's go and fix that. And then I was like, cool, way of the races, right? All that happened, guy in London, you know, just I saw it randomly and was like, boom, okay, cool. And then I've like worked on it and I'm going to go home after this podcast.

1:08:37Turner Novak:I'm going to go and finish it up. And is this all happening on Discord? You guys run the company on Discord, which is not what you normally hear no most people like running on slack and the reason we run it on discord is drop in communication right so remote companies don't have that like office culture like serendipity etc which is like actually deeply valuable like you want to actually be close to your your co-workers in general and so yes you can spin up like a huddle in slack but like discord has this really really cool feature where you can see everybody kind of like in the kind of meeting rooms right at the top right yeah that's true there's like there's different like audio jacks or i guess video to you can like see who's in them you can see it's it's like the michael bloomberg glass door meeting room policy for the internet of things or whatever not the internet of things but like the internet or whatever um so that's kind of why we do that in general and it's worked it's worked quite well for a lot of things and then there's like some things that we have to like build slack bridge extensions for yo is there any like you know i mean discord is made for gaming not working a business organization funny we're like trying to make like a really concrete like you know decision of the company and then you get like a fortnight ad at the bottom of it you're like okay this is awesome do you uh do you wish that more people more like founders and organizations talk publicly about how they do the kind of team and structure things yeah 100 100%.

1:09:58I think how you construct a company's work structure is like, one, it hasn't been changed in a while. And two, actually, it's like, one of the number one complaints that I hear from employees who have gone through like hyper growth periods, right? I have friends in various different companies, where they're like, man, we'd like really fast. And like, our management stack really sucks. Like, we're not setting up our managers for success, we're not setting up people to kind of like scale into these roles like there's no quant like like almost like jd like what does a manager do right it's like you know how do you give these people really really awesome tools to be able to innovate on this thing that is like very very standard mba kind of etc business stuff so i would love if people like wrote on on a lot of these things i don't think a lot of people are doing that in in general not even just like the writing thing i don't even think they're just like innovating on it it's like the standard kind of like a manager's path which there's nothing wrong with that right like having a day like that's probably the closest like rubric concrete manager manager kind of operationalizing but i i think that there is arb in changing a few things there right especially when you run a remote team and i can run one-on-ones at weird different hours right i can go out in the middle of the day have a run go have you know lunch or something like that brunch with a friend or something and then come back and and kind of like have a meeting at, I don't know, 8 o 'clock or 11 or something.

1:11:25Turner Novak:When you talk about, you see the issues with these hyper-growth startups that don't do org design or team design correctly. What's the mistake that seems to be made? It just seems like a almost just like a lack of concrete operationalizing of what do managers do at those companies. What is a manager supposed to be responsible for? how can they you know encourage the excess of their employees like just a very very concrete example like do they or do they not write code right like that's the thing that like is is like some some companies like have management stacks where they just they simply don't even write that and it's like a completely different experience across across different culture or different different teams on that culture right and so you have this like almost sharing or different ways of operating which there's not like a really a standard on that right other than like industry standard etc what's like the most interesting uh operating procedure policy that you've seen even if you don't use it at railway but it's like the thing that pops the most is like that's a very opinionated way of doing something i mean the one that that i like is the like clean memo messy meeting or one from like amazon that one kind of just like makes sense we try and like write memos generally for meetings but it doesn't happen every single time obviously what other things are really, really solid operating procedure.

1:12:49Turner Novak:I like a lot of the Netflix stuff. If you've read the No Rules Rules book, there's a lot of really, really solid stuff in there. I don't think I have. What's an example from that? Well, a lot of it is kind of on just giving people as much slack or whatever as possible, like a ton of different freedom, right? There's an example from that book where it's like, well, who approves my marketing expenses? And it's like, you don't. you have a credit card and you go run the marketing expenses. And if you need to write a PO for any of these things, like go and do it. And they're like, well, what's the like budget?

1:13:23What's all these other things, right? And it's like, make good decisions that are in the good or the interest of the company and go in and execute on those decisions. And, and, you know, if it's great, that's awesome.

1:13:33Turner Novak:And if it's bad, like tell us why it was bad. Right. And it's like a lot of kind of like freedom stuff like that. You know, I'm saying you feel like maybe too much like a daycare versus like a science experiment. Your words, not mine. okay yeah well let's fair i'm i'm happy to take that the brunt on that one so the i mean when it comes to having a remote team lots of different time zones lots for people doing different things different procedures or different uh uh work modes different like cultures around the world one thing i know you have a really strong opinion on is not working on the weekends so why do you think that yeah so uh i got lambasted on twitter the other the other day for this one where i said i forget what the actual quote was i think it was um you know my hot take is that you should uh not be working weekends and if you end up working weekends uh you suck at planning right and so i personally try to both champion the idea that you should be on when you're on and you should be off when you're on when you're off when you're off yeah sorry you know and the reason for this is horsepower gets you a lot of the way but at a certain point you need to refine your technique right and if you figure out that you're working all the time you don't really have a space to kind of like decompress figure out where you kind of like lost essentially lost time if you think about it in terms of like almost like a slalom scheme thing right like i had this deadline and i was ahead of it why was i ahead of it right what decisions did i make actually allowed me to kind to like move really, really quickly there.

1:15:06Or I had this deadline and I was behind it. Why? For what reason was I behind? Where could I have like bought back those seconds essentially, right? And if you are like always absolutely rip it and grip it and gunning it, it's all these things. And your default modus operandi is to simply double down and continue to work weekends. You're not going to be able to identify those areas in which you can actually get, you know, outsized value returns on simply changing one small aspect of how you are operating so that you can get faster and faster and faster, right? It's kind of like, you know,

1:15:42Turner Novak:performance athletes or anything else like that, they'll push themselves a ton and then they'll give themselves a little bit of space to kind of like cycle out, right? So it's not like you don't work and you like close your laptop on Friday at 5 p.m. and you open it back up at 9 a.m. on Monday. No, no, no, right? Like it's, if I do my job perfectly correctly, 100 % of the time, which I never ever do because I'm human or whatever, right? I will not work any weekends and I will not get paged when I'm on vacation. That doesn't happen. I worked the last like six weekends, right? Like getting like a bunch of these things.

1:16:15But as a result of working those last six weekends, I've kind of like put things into a spot where I can say, this is the reason I've been working the last six weekends, right? This class of work, we probably actually didn't even need to let go of it down and do. We were just doing it because, you know, either org planning or, you know, reactionary or anything else like that. So I can go back through there and kind of audit my time and say, where can we buy back 20 % of our cycles? Where can we go in and do that? Right. And then we go and write it down and creating that space to be able to go and do that almost like time audit, decompression, et cetera, is really, really key for figuring out ways that you can actually go really, really quickly again.

1:16:54Right.

1:16:54Turner Novak:It's like the, you know, you build the race car, you run the race car, you figure out where it rattles, you bring it into the pit lane, and And then you go and you tune it again, and then you run the race car. So it's almost like you almost like try to be a weekend warrior. Like you live for the weekend because you make your week so efficient and so good that you can take the weekend off. Even if you don't actually necessarily get to do that a lot, but that's what you strive for. Yeah, that's exactly the goal, right? And because like my brain will naturally just like pull back towards work anyways, right?

1:17:24But it's different kinds of work, right? It's work that's not like doing, right? It's work that's like thinking, right? So I pull myself away from the keyboard. I go, maybe I'll take my journal. I'll go to the park or the sauna or something like that. It's still thinking about work, but it's almost like the technique of like, how could I have improved on this thing? How could I have whatever, right? So that's kind of why I think that like, you should delineate these like concrete lines, right? To say, okay, I'm going to go hard on all, like Monday to Friday, I'm going to go hard, right? Like I'm probably working into like, you know, 11, 12, sometimes 1 a.m., right?

1:17:57And then I'm up at like 8 a.m., right?

1:17:59Turner Novak:going to go hard during the week and then buzzer stops weekend etc if i have stuff that i have to do because i'm getting pulled in maybe i'm you know on call or anything else like that obviously i have to go in and do it right but i should strive to basically try and disconnect as much as possible and figure out why i'm getting pulled back into these things where i lost time or anything else like that so that i can prove myself over time do you feel like sort of like the culture of Silicon Valley has seeped into that being a necessary thing. Like you must work weekends, maybe not Silicon Valley, just like business in general.

1:18:35Turner Novak:I think marketing is truly underrated. It's a skill that if you're really, really good at marketing, you can fuck up almost everything else. And so I think that marketing has only even gotten more and more important. Right. And so there's a lot of almost like, like almost gratuitous, like grind culture of like, I'm just going to like grind a ton on this stuff. And, you know, because you're putting out that content, like those are things that people are generally seeing, they're amping it, et cetera. Right. So I think it's changed a little bit in terms of people are doing things for almost like visual optics reasons in some ways versus what can we do that's actually like highly impactful or stuff like that.

1:19:18Turner Novak:Right. So I think that that's kind of more where it's kind of like gravitated towards. And as a result, you know, you see a lot of like really just like absolute grind culture or, you know, really flashy kind of like, you know, things that you're like, what is like, what is this? Right. Like what product are you actually selling? What thing are you actually solving? You know, stuff like that. So one actual question I probably should, we should probably talk to this a long time ago, but Erica at Redpoint was like, oh, make sure you ask this. so you probably could have taken a really big concentrated bet on ai models at some point and i mean i don't think you have what's what was the thinking on that so i'm a big fan of jim collins i don't know if you've ever read it yeah good to great great by choice what was the other one yep i don't know the one i think of mostly is good to great right and it has this principle in it called the hedgehog principle um and so it's essentially like what is the surface area of things that you can be like basically top three in the world i think it is and if you can't do that and you can't operate on those things like probably shouldn't move into that adjacency zone just yet right and so there's a shitload of competition in terms of like doing you know the the model hosting etc right and so from this point right like i don't think that we can be you know we could if we invested all our eggs in that basket but i don't think we can be top three to five in the world while also doing all the things that we want to go in and do.

1:20:41So it's almost a concerted effort to say, that's really, really cool, but we have to say no to this at this time. We have to exercise a lot of focus to basically say, we're going to execute on the things that we are really, really set up for and really, really do excellently well. Let's go in and push on those. And then once we get to the point where we are dominating those things in that field, what can we span to? And then figure out, okay, cool. you know when we can do compute and data centers and you know orchestration and and everything else like that so well that we are literally top in the world right and we're pushing towards that

1:21:16Turner Novak:as of right now i think in a really good spot maybe we can do that for dpus right and maybe we can slice and dice gpus and maybe we can give you timeshare on a kind of like basis of oh cool i really want to just like just this slice of of a gpu for this period of time right and that may or may not be a thing that we'll do in the future you know just like maybe like a road map sneak peak but maybe not maybe maybe maybe not right it's like a like at some point that will probably be a thing that like is worth doing right okay that's fair this is not like a one drop like next week we're doing gpus or something else like that you know yeah yeah so you mentioned good to great by jim collins do you have any just like favorite historical businesses or ceos or founders that you've kind of gotten a lot of inspiration from and it can be recent ancient times, you know, anything that you've, anyone you've really drawn a lot of inspiration from.

1:22:10Turner Novak:I don't really have like like founders or whatever. It's not like, you know, like Steve Jobs is great. You know, it's like a good person to look up for for a variety of reasons. For some other reasons, not so great. It's kind of like rude or whatever. I don't necessarily have like a specific person where I'm like, oh my god, this is like my idol or whatever. I like take various different things from people and try and like personify them, right? One example is like And not even really a founder. There's this YouTube video of Jonah Hill talking about why Marty Scorsese is like such an excellent director.

1:22:42I swear I'm going somewhere with this. And he's talking about it. And he's basically saying like, imagine yourself doing, you know, as an experienced chess player with a infinite amount of time. Right. And you make a move and, you know, you keep going or whatever. Right. they are really really good because given a super super small subset of time they're going to make a better move quicker right and so those are kind of things that i like going and say i'm like okay why is that person excellent why are they truly truly good at their craft and what makes them so and is there a way that i can go and take that kind of like skill and get really really good at right so i try and make decisions like really really quickly and intelligently now because i believe that like that is one part of like being excellent right so that's just kind of one example but I take pieces from various different things where I kind of see them, you know?

1:23:30Turner Novak:You try to find like who or what is really good at specific things and seeing what you can learn from them. Yep. Anything recent you've learned from that? The one that kind of comes to mind is like, it's like Mark Zuckerberg. And it's not really like a thing, but like I think Mark has like really, really, really good patience and really, really good identification of like things that are important, right? And so they are very happy to go in and work on the hard problem like VR because they know like they're going to shell a ton of money into that thing because they know at some point VR is going to be really, really, really important.

1:24:06Right. So they have the patience to go and wait out for like a ton, a ton of time so that they can potentially be first in this market and just kind of like way around. right so that's kind of like one example of a thing that i've been like i don't know if i learned it recently but i i developed a deep kind of like appreciation for how good i believe that they are at this thing right it's like waiting for the right time and then acting and then being a really

1:24:28Turner Novak:really good spot you know it makes sense with kind of thinking about maybe the railway product roadmap ways where you like roll things out where you thought about what you offer where you compete just be really really deliberate about that stuff wait for users to really tell you exactly what they want out of something right because if somebody says like oh i want this specific integration and you're like all right well tell me why or like what what problem or anything else like that it's a bit always a bit flat right but then when a user like begs you for like oh my god i need better observability i can't like tell any of this like i don't want to use you know this specific thing anymore right like we these are all the problems i need to solve right i need to be able to be notified when you know my apps crash or i need to be able to like know when like latency spikes or anything else like that like you're starting to get really really concrete information because you've said no to this person a lot, like, and these people in neural for a long while, you're accumulating a lot of this information so that when you actually go and the time is right to go and act on that, you have a litany of feedback that you can actually go in and be like, okay, cool, like, these are all the things that we should go and execute on.

1:25:28These are the problems. These are the things that we're going to, like, actually try and really push the envelope on, right? Your plan is really, really concrete instead of this almost, like, frenetic, like, reactionary thing of, like, oh they want this so i'm gonna go and build this thing right i feel like that's a good sort of way to end it with the way like it's almost like the whole railway uh

1:25:49Turner Novak:like the experiment of building this company has been like a very intentional way for the right moments to do things even thinking about like how you've incorporated certain products and features just like like make sure you take a feedback and know when you're acting like you act from position of strength almost yeah well this has been a lot of fun thanks for having me this is excellent it was a ton of fun where can i if somebody's like man this jake guy is like he seems like it seems like a sharp guy we mentioned your tweet so what's we can we can we find you on twitter or you can find me on twitter or x or whatever you want to call it nowadays it's just jake so j-u-s-t and then jake you know you can follow me to varying levels of i don't know interest or whatever i'm sorry i'm sorry or you're welcome you know depending on how you read the tweets or whatever so yeah and then do you write on sub stack still i didn't actually look at the dates on your posts.

1:26:36I haven't written in a while. It's mostly kind of like, you know. Actually, I might have written something a little while ago. It's very kind of inconsistent. It's whenever the kind of like need strikes to get something out there in general, right?

1:26:48Turner Novak:You mentioned the domain, your million dollar domain, railway.com is where you can find more. You can find us at railway.com. Cool. Yeah, we'll throw links to a bunch of stuff we talked about in the description and people can dig in a little bit more if they want to. It's been a lot of fun. Thanks for doing it. Cheers. Thanks for having me. And thank you for listening. And thanks to Ramp for supporting this episode. Upgrade your corporate card and get$250 at ramp.com slash the peel. If you missed it, check out last week's episode with Matt Mullenweg at Automatic on how WordPress grew to power over 43 % of all websites on the internet.

1:27:21Turner Novak:And the week before that with Grant Lee on how Gamma grew to over 50 million in ARR with only 30 employees. Tune in next week for Garrett Lord, the founder of Handshake, whose college recruiting platform has emerged as a leader, filling a massive opportunity in the AI data labeling space. If you like this conversation, please comment, like, subscribe, and name your next AI model after me. And if you don't want to miss a future episode, subscribe to my newsletter, The Split, linked in the description to get each episode plus a transcript emailed directly to your inbox every week. Thanks again for listening.

1:27:54Turner Novak:See you next time.

1:28:01you

From the publisher

Jake Cooper is the Founder of Railway.


This conversation explores how AI accelerates the need for strong backend infrastructure, when to build vs buy in AI software, and why there are only two moats: solving hard problems and doing hard things.


We also unpack Railway’s bold product bets, like enabling creators to earn revenue with backend templates, building their own data centers, and not building their own AI models.


Jake also talks about their four week new hire onboarding, how they build a problem roadmap, why operators should be managers, and why you should almost never work weekends.


Thank you to Angelo Saraceno @ Railway and Erica Brescia Bacon @ Redpoint for help brainstorming topics for the conversation.


Thanks to Ramp for supporting this episode. It's the corporate card and expense management platform used by over 40,000 companies, like Shopify, CBRE and Stripe. Time is money. Save both with Ramp. Get your $250 here.


Timestamps:

(3:33) Solving the hardest problems in dev tools

(8:16) Starting with the hardest thing

(11:18) How AI accelerated the need for Railway

(12:50) Importance of backend in AI-native software

(16:52) Jake’s angel fundraise strategy

(20:51) Resisting AI for so long

(25:32) Using AI to get leverage

(29:57) Build vs buy in AI software

(33:22) When Jake knew Railway was working

(34:27) Creating infrastructure templates

(38:04) Building data centers and a cloud service

(40:27) Two moats: Hard problems and hard things

(46:25) Hitting 8-figures in revenue

(48:47) Railway’s four week onboarding

(54:25) Building a problem roadmap

(56:16) You can’t set your own culture

(1:01:58) Railway’s viral “How We Work” post

(1:08:39) Using Discord instead of Slack

(1:11:25) How hypergrowth companies mess up org design

(1:14:03) Why you shouldn’t work weekends

(1:19:45) Not betting big on AI models

(1:21:53) Lessons from Zuck, Martin Scorsese



Referenced

Railway

Careers at Railway

The Inward Draw of Capitalism

How We Work Volume 1

Volume 2

Volume 3

Volume 4


Follow Jake

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Substack


Follow Turner

Twitter

LinkedIn


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