Paraphrasing, but I think about this 👇 from Ben Thompson/Stratechery every. single. day.
- All companies have the ability to produce more code/products cheaply due to LLMs
- Most companies will use that ability to expand to adjacent areas currently occupied by another SaaS co
- Competition between SaaS co's is going to explode for this reason and become ruinous
- Established competitors offering similar products
- startups offering niche use case products for lower price b/c have superior cost structure compared to established competitors
- both become a drag on pricing power
Related: Sandcastles & Silicon
We used to be building castles, now we're building sandcastles that are going to get washed away.
.jpg)
