AI First at a Fraction of the Cost

Had dinner with a friend who's CFO at a large CPG company. Told him about "vibe coding" - using AI tools like Cursor to build products with minimal coding experience. He got it immediately.

While his company pays McKinsey millions, he instantly saw how targeted software could be developed for a fraction of the cost this way. No surprise there. He's sharp.

The interesting part isn't just that these tools let non-programmers code. It's what that enables economically.

For decades, software startups followed a predictable path: raise VC money to hire engineers, give up equity, chase billion-dollar outcomes. The minimum viable startup was expensive.

Now small teams can build useful software without being expert programmers. A bootstrapped team can create a targeted solution, charge reasonably, and build a profitable business without pitching VCs.

Instead of every startup trying to be a unicorn, we'll see thousands of small, profitable businesses addressing narrow but real needs. Founders can retain equity and build sustainable businesses on their own terms.

For large companies, it means bypassing IT bottlenecks. My CFO friend immediately started thinking about what leaving his job and starting a business like this could be like. He even considered poaching their IT guy to join him.

When practical corporate leaders see immediate applications for new technology, something significant is happening. Maybe our AI tools will enable more human-scale businesses, not fewer. That's worth being optimistic about.