From SaaS to AI-First: How Companies Are Reshaping Innovation

The anxiety that I see is if you can generate an enormous amount of code and no one is reading it, you don't know the quality of the code. Nobody deeply understands the code base, and there's more fragility. Right? It's like the slot problem, Vibe coding slot in my actual production code base. But I think the broader problem that new company could go solve is, like, nobody knows how to manage that issue of human attention to engineering. I think it's like open season around this really, really big problem. Hi, listeners. Welcome back to No Priors. Markets are melting down about the end of software. Today, Elad and I are hanging out and asking, is SaaS actually dying, or are people just projecting five person startup behavior onto the Fortune 100? We'll talk about what's real, incredible revenue growth, collapsing token costs, and faster turnover of vendors, what's just hype, and how to size the opportunity. We also discussed the changing bottlenecks in building a software company and some parallels to the Internet and cloud eras. Let's get into it. It's good to hang. The the market is freaking out around us. So in all that noise, what are you thinking about? Oh, you mean the SaaS the SaaS pocalypse? The SaaS pocalypse. The end of software. Yeah. That's kind of interesting. I feel like there's some meta trends that people are getting right and then a lot of specific companies that people are getting wrong. And so, you know, I guess the basic premise is that SaaS software and proceed software will no longer exist and everything is going to be replaced by AI and everything's just going to get Vibe coded. So why would you pay X dollars for a Salesforce instance when you can just Vibe code it internally? And all that stuff strikes me as incredibly shortsighted in the near term. Over the long run, who knows what happens in twenty years or whatever? But there's lots and lots of companies that are quite durable. I think an interesting example of that where I'm still a shareholder is Samsara, where nobody's going to vibe code a fleet management app that will then get distributed through like what, Vibe sales? Enterprise sales or something. And you're going to build a Vibe like in cab camera sensor that everybody will install in these fleets, and then you're going to support them using Vibe agents or something. It's just very overstated. So I feel like it's one of those things where there's a massive market around something that in the long run has a lot of truth to it. And maybe in the short run for certain types of companies has a lot of truth, right? Ultimately, I think Dekogon and Sierra are examples of companies where you're moving from proceed software to basically utilization based customer support related agents, right? That is a real shift. That may impact some of the prior wave of sort …