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THE DAILY INDEX

Technology, AI, software, security, crypto and business

MISCELLANEOUS

TLDR

ENG ORG SENIORITY-MIX MODEL

One of the trademarks of private equity ownership is the expectation that either the company maintains its current margin and grows revenue at 25-30% or instead grow slower and increase its free cash flow year over year. Engineering costs have a major impact on free cash flow in many organizations. One of the largest contributors to engineering headcount costs is an organization's seniority mix. This article looks at how various policies impact an organization's seniority mix. To create a healthy seniority mix, stop hiring at senior-most levels, implement a 'backfill at N-1' policy, and cap the maximum number of individuals at the senior-most level.

WHY OPENAI'S $157B VALUATION MISREADS AI'S FUTURE

OpenAI's $6.6 billion fundraise earlier this month was a statement about where AI will create value and who stands to capture it. Its investors are betting that AI is so transformative that the usual rules of focus and specialization don't apply - the first company to achieve AGI will win everything. However, there are many barriers to overcome before its goal can be achieved. This article looks at the challenges that OpenAI faces and where the most promising opportunities in AI for investors and startups lie. New technologies, no matter how revolutionary, don't automatically translate into sustainable businesses.

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