That's a fair point. Model prices can increase. This raises the next question.
Doesn't this mean that any company that depends on headcount growth (every SaaS), loses?
100 SWE -> 10 SWE, 100 slack/gmail/notion/zoom/etc. subscriptions become 10.
And now let's recurse.
These SaaS companies that use AI and dropped 90% of engineering headcount lose revenue because their customers also drop headcount.
Let's say AI costs 89% more than it did before, so the SaaS companies still get 10x productivity from the 10 engineers, but now all their customers headcount is 90% smaller too. So what now? Does every company make a pact to grow headcount ;)
SuboptimalEng|1 month ago
Doesn't this mean that any company that depends on headcount growth (every SaaS), loses?
100 SWE -> 10 SWE, 100 slack/gmail/notion/zoom/etc. subscriptions become 10.
And now let's recurse.
These SaaS companies that use AI and dropped 90% of engineering headcount lose revenue because their customers also drop headcount.
Let's say AI costs 89% more than it did before, so the SaaS companies still get 10x productivity from the 10 engineers, but now all their customers headcount is 90% smaller too. So what now? Does every company make a pact to grow headcount ;)
ares623|1 month ago