I’ve worked in #SaaS for a few years now. Here’s the standard VC backed SaaS playbook:

- Get seed funding, build MVP, get a few customers

- Get Series A and find product market fit

- Series B on forward - burn all the cash you have to acquire as much market share as possible.

- Once you have a strong percentage of the market, start raising prices rapidly to become profitable

- Big public exit to appease VCs, investors, employees…

This leaves customers paying a huge amount than they originally did and always spurs conversations about whether they really need this thing or not.

The big #AI players are clearly targeting corporations with the pitch of “you won’t need employees”. But there’s a problem - AI doesn’t have the same economics of typical software.

If they start charging what it actually costs to run these models, the cost savings suddenly aren’t so immense. If we end up in a world where corporations are running AI bots 24/7, it’s not unlikely that they quickly become too expensive vs traditional employees. And this isn’t even accounting for whether the AI actually performs these tasks well enough.

Unless the AI companies can create huge amounts of energy to offset their costs, I can see this happening. Maybe they figure out how to do this, but if adoption goes through the roof, it’s going to take a tremendous amount of new energy production.

Humans are the undefeated champions of turning organic matter into energy and production efficiently!