Daily Edition · Page 2

THE DAILY INDEX

Technology, AI, software, security, crypto and business

GENERAL

TLDR

I QUIT MY FAANG JOB BECAUSE IT'LL BE AUTOMATED BY THE END OF 2025

The evidence points to a scenario where engineering and other pure knowledge works will soon be mostly done by AI agents. Those who formerly held jobs that AI took over will act as AI agent wranglers. There are still factors of production other than intelligence, many that are intrinsically tied to being a human, that should retain economic value. There are many jobs that, even if they could be done very well by AI systems, people wouldn't want to use AI systems to do them, for example, sales.

THE MODEL IS THE PRODUCT

Generalist scaling is stalling, opinionated training is working much better than expected, and inference costs are in free fall. Investors have been betting on the application layer, which is likely to be the first to be automated in disrupted in the next stage of AI evolution. AI companies that form a complete upstream and downstream industrial ecosystem will not need to make their own applications. Big labs will likely shift partnerships from API customers to contractors involved in the earlier training stage.

HOW THE AI TALENT RACE IS RESHAPING THE TECH JOB MARKET

The debut of ChatGPT was a turning point for the AI job market. Many more companies became aware of the power of integrating AI into products and workflows. New AI-related postings rose 68% between the time ChatGPT was released through to the end of last year while tech postings were down 27% over the same period. Engineers without AI skills can still fare well in the job market, but AI skills tend to fetch premium pay and job security.

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