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THE DAILY INDEX

Technology, AI, software, security, crypto and business

SCIENCE & FUTURISTIC TECHNOLOGY

TLDR

Y COMBINATOR STARTUPS ARE FASTEST GROWING, MOST PROFITABLE IN FUND HISTORY BECAUSE OF AI

The latest cohort of Y Combinator startups is growing significantly faster than past cohorts - and with actual revenue. The entire batch in aggregate grew 10% per week over the last nine months. Y Combinator CEO Garry Tan attributes the growth spurt to leaps in artificial intelligence. AI's ability to subsidize an otherwise heavy workload has allowed these companies to build with fewer people. 95% of the code was written by AI for about a quarter of the current Y Combinator startups. While there's a ton of hype, the startups are actually getting commercial validation.

THE GOOD TIMES IN TECH ARE OVER

Being a software engineer has been a lot of fun for most of the last decade, with good job opportunities and plenty of perks for working in tech. That has changed in the last two years. A lot of software engineers are refusing to change - there is going to be a personal cost to anyone not going along with the vibe shift, particularly for more junior or more vulnerable engineers. Companies are now trying to focus, so funding and resources are more focused on a handful of bets that company executives actually care about. The silver lining is that the industry is now more realistic and value is easier to understand.

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