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Will SaaS survive the AI era? Four reasons it may not: - Complexity: Software will be cheaper & easier to build yourself - Model Providers: Foundation model providers will move into the app layer. - Agentic Models: Models are becoming more agentic, they could handle tasks without extra SaaS... show more

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34,425 views • 8 months ago •via X (Twitter)

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Sebastian Siemiatkowski, the co-founder and CEO of Klarna: SaaS is Dead. "The cost of creating software is going down to zero. And that means everyone will be able to generate software at any point in time. " But the real threat to SaaS will shows up next when AI makes data migration one-click—no more hostage data models, no more painful switching costs. --- From '20VC with Harry Stebbings' YT channel ( link in comment)

Sebastian Siemiatkowski, the co-founder and CEO of Klarna: SaaS is Dead. "The cost of creating software is going down to zero. And that means everyone will be able to generate software at any point in time. " But the real threat to SaaS will shows up next when AI makes data migration one-click—no more hostage data models, no more painful switching costs. --- From '20VC with Harry Stebbings' YT channel ( link in comment)

Rohan Paul

93,441 views • 6 months ago

"AI & SaaS: Will MCP Replace Your Apps?" - AI may soon replace your system of record - AI is becoming what's closest to you as the worker - Many of us already in ChatGPT 2+ hours a day - ChatGPT may soon be our model of what our CRM is Latest with Rory O'Driscoll + Harry Stebbings + me

"AI & SaaS: Will MCP Replace Your Apps?" - AI may soon replace your system of record - AI is becoming what's closest to you as the worker - Many of us already in ChatGPT 2+ hours a day - ChatGPT may soon be our model of what our CRM is Latest with Rory O'Driscoll + Harry Stebbings + me

Jason ✨👾SaaStr.Ai✨ Lemkin

30,154 views • 1 year ago

The Biggest Risk is Models Moving into the App Layer: " The models are becoming agentic. It's possible the model is all you need. Imagine if you wanted the model to update medical benefits information. If the model is agentic and it is integrated into the database; you don't need anything else in the middle." How do you stop yourself becoming a data repository which an agentic layer feeds off Nicolas Sharp Marc Benioff Brian Halligan Tuomo Riekki Keith Peiris

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Harry Stebbings

47,045 views • 8 months ago

What happens in a world post-foundation model? "Foundation models are not going away, they will remain a core part of future systems. The question is not whether they get replaced, but what gets built on top of them. Future AI systems will likely combine foundation models with additional components to create more complete systems." Demis Hassabis Love to hear your thoughts Yann LeCun François Chollet Jürgen Schmidhuber Aran Komatsuzaki

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Harry Stebbings

13,648 views • 4 months ago

Choose a model (any model) and build your application with it. Do not spend time swapping models early on. Do not try to optimize before you have a working system. This is one of the first recommendations I make to every new team I consult with. Eventually, it will be time to optimize the model. • You may need a cheaper model • You may need a faster model • You might need a smarter model Good luck if you stitched together 12 different APIs and SDKs from 7 different vendors. Over half of the companies I consult for run on Microsoft software and have access to Microsoft Foundry. Microsoft Foundry is a complete agentic ecosystem. If you're in that world and building AI applications, Microsoft Foundry is where everything lives: • Models (largest selection in the market) • Agentic SDK (Python, C#, JavaScript/TypeScript) • Tools • Evaluations • Monitoring They are fully integrated with GitHub and Visual Studio Code. The best part: Their agentic platform is fully agnostic of the models you use. You can integrate with any model using the same OpenAI-style API. Swapping one model for another takes 1 second.

Choose a model (any model) and build your application with it. Do not spend time swapping models early on. Do not try to optimize before you have a working system. This is one of the first recommendations I make to every new team I consult with. Eventually, it will be time to optimize the model. • You may need a cheaper model • You may need a faster model • You might need a smarter model Good luck if you stitched together 12 different APIs and SDKs from 7 different vendors. Over half of the companies I consult for run on Microsoft software and have access to Microsoft Foundry. Microsoft Foundry is a complete agentic ecosystem. If you're in that world and building AI applications, Microsoft Foundry is where everything lives: • Models (largest selection in the market) • Agentic SDK (Python, C#, JavaScript/TypeScript) • Tools • Evaluations • Monitoring They are fully integrated with GitHub and Visual Studio Code. The best part: Their agentic platform is fully agnostic of the models you use. You can integrate with any model using the same OpenAI-style API. Swapping one model for another takes 1 second.

Santiago

12,014 views • 6 months ago

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In Ackman's latest interview he divides the AI market, stating that it is not a bubble at the foundational layer, but highly risky at the software/model layer. He sees "near infinite demand" for compute. He believes infrastructure providers such as Microsoft, Amazon, Meta, and even SpaceX will earn massive returns on their data center investments. He is highly skeptical of pure model layer businesses like OpenAI and Anthropic. He notes they face massive capital burn rates and an existential threat from open-source models such as Chinese model and SpaceX that are driving the cost of AI access effectively to zero. A business model reliant on charging for proprietary models will collapse if open-source alternatives are essentially free. $AMZN $META $MSFT $SPCX

CapexAndChill

137,755 views • 1 month ago

.Amjad Masad suggests SaaS founders to go against Silicon Valley's dogma w/ "focus" and build Chinese style tech companies - go broad, build platforms not point solutions. The SaaS market is getting brutally reshaped by AI. Every day Amjad sees people using Replit to replace $15k-100k software products. Vertical SaaS companies are on death watch. If your product solves one specific problem, it's already possible to clone it with today's AI. Tomorrow's tools will make it even easier. Horizontal platforms with strong ecosystems - think Rippling as your "system of record" or Salesforce with its massive developer network are more likely to survive. These aren't getting replaced by a weekend project. He predicts that generative capabilities and larger pieces of software will become more important.

.Amjad Masad suggests SaaS founders to go against Silicon Valley's dogma w/ "focus" and build Chinese style tech companies - go broad, build platforms not point solutions. The SaaS market is getting brutally reshaped by AI. Every day Amjad sees people using Replit to replace $15k-100k software products. Vertical SaaS companies are on death watch. If your product solves one specific problem, it's already possible to clone it with today's AI. Tomorrow's tools will make it even easier. Horizontal platforms with strong ecosystems - think Rippling as your "system of record" or Salesforce with its massive developer network are more likely to survive. These aren't getting replaced by a weekend project. He predicts that generative capabilities and larger pieces of software will become more important.

Aish

116,658 views • 1 year ago

As AI models continue to rapidly improve and compete with one another, a new business model is coming into view: Vertical AI Agents. In this episode of the Lightcone Podcast, we consider what effect vertical AI agents will have on incumbent SaaS companies, what use cases make the most sense, and how there could be 300 billion-dollar companies in this category alone.

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Y Combinator

26,338 views • 1 year ago

Bloomberg warns that China’s AI price war may make profitability difficult for years. They should be more worried about Wall Street. If the price war continues, the real casualty may not be AI. It may be the entire valuation structure built around it. OpenAI and Anthropic are valued as though frontier intelligence will remain scarce, expensive, and capable of producing software-like margins. Hyperscalers are spending hundreds of billions on infrastructure based on that assumption. Nvidia’s valuation depends on those capital expenditures continuing for years. But Chinese models are driving token prices toward commodity levels. Usage can explode while revenue per token collapses. The servers become busier. The models become cheaper. The profits fail to appear. Nvidia has real revenue and real margins, so it is not the weakest link. But even Nvidia is priced on the belief that today’s extraordinary AI capital expenditure will remain economically justified. If cheaper models, better efficiency, and open weights destroy the expected returns on that infrastructure, Wall Street will not merely reprice OpenAI and Anthropic. It will reprice the entire AI chain. America built the AI bubble on Nvidia. Nvidia built its empire on TSMC. Taiwan built its economic security around TSMC. If Chinese efficiency destroys the economics of brute-force AI, the repricing will not stop in Silicon Valley. It will cross the Pacific and land in Hsinchu. AI may continue transforming the world while the AI bubble collapses. The internet survived 2000. The valuations did not.

Bloomberg warns that China’s AI price war may make profitability difficult for years. They should be more worried about Wall Street. If the price war continues, the real casualty may not be AI. It may be the entire valuation structure built around it. OpenAI and Anthropic are valued as though frontier intelligence will remain scarce, expensive, and capable of producing software-like margins. Hyperscalers are spending hundreds of billions on infrastructure based on that assumption. Nvidia’s valuation depends on those capital expenditures continuing for years. But Chinese models are driving token prices toward commodity levels. Usage can explode while revenue per token collapses. The servers become busier. The models become cheaper. The profits fail to appear. Nvidia has real revenue and real margins, so it is not the weakest link. But even Nvidia is priced on the belief that today’s extraordinary AI capital expenditure will remain economically justified. If cheaper models, better efficiency, and open weights destroy the expected returns on that infrastructure, Wall Street will not merely reprice OpenAI and Anthropic. It will reprice the entire AI chain. America built the AI bubble on Nvidia. Nvidia built its empire on TSMC. Taiwan built its economic security around TSMC. If Chinese efficiency destroys the economics of brute-force AI, the repricing will not stop in Silicon Valley. It will cross the Pacific and land in Hsinchu. AI may continue transforming the world while the AI bubble collapses. The internet survived 2000. The valuations did not.

𝘊𝘰𝘳𝘳𝘪𝘯𝘦

13,927 views • 16 days ago

AI will require “gazillions” of tokens. - Qualcomm CEO Cristiano Amon: Agentic AI will consume dramatically more tokens because it performs autonomous tasks, uses multiple systems, and interacts with tools. A chatbot spends tokens on language; an agent spends tokens on deciding, checking, calling tools, reading outputs, revising plans, and coordinating with other software. So, AI demand will grow hugely when software starts letting agents act, not just answer. Today a single human-AI exchange may be large, a reasoning task may be much larger, but we are already entering the agentic era, where an autonomous workflow can become exponentially larger still because the model is no longer producing one response. It is running a process. When a SaaS product redesigns itself around human-agent interaction, every task can become a chain of hidden micro-decisions, and each micro-decision consumes context, memory, tool calls, verification, and output tokens. Another point is people hear “more tokens” and think only of bigger data centers, when the deeper change is economic: software usage may stop being measured mainly by clicks, seats, or sessions. It will be measured by how much machine reasoning/tokens gets spent on behalf of each user. ---- From "Reuters" YouTube channel, (link in comment)

AI will require “gazillions” of tokens. - Qualcomm CEO Cristiano Amon: Agentic AI will consume dramatically more tokens because it performs autonomous tasks, uses multiple systems, and interacts with tools. A chatbot spends tokens on language; an agent spends tokens on deciding, checking, calling tools, reading outputs, revising plans, and coordinating with other software. So, AI demand will grow hugely when software starts letting agents act, not just answer. Today a single human-AI exchange may be large, a reasoning task may be much larger, but we are already entering the agentic era, where an autonomous workflow can become exponentially larger still because the model is no longer producing one response. It is running a process. When a SaaS product redesigns itself around human-agent interaction, every task can become a chain of hidden micro-decisions, and each micro-decision consumes context, memory, tool calls, verification, and output tokens. Another point is people hear “more tokens” and think only of bigger data centers, when the deeper change is economic: software usage may stop being measured mainly by clicks, seats, or sessions. It will be measured by how much machine reasoning/tokens gets spent on behalf of each user. ---- From "Reuters" YouTube channel, (link in comment)

Rohan Paul

12,664 views • 1 month ago

New video of Qualcomm CEO Cristiano Amon: AI will require “gazillions” of tokens. Because, Agentic AI will consume dramatically more tokens because it performs autonomous tasks, uses multiple systems, and interacts with tools. AI demand will grow hugely when software starts letting agents act, not just answer. A chatbot spends tokens on language; an agent spends tokens on deciding, checking, calling tools, reading outputs, revising plans, and coordinating with other software. Today a single human-AI exchange may be large, a reasoning task may be much larger, but we are already entering the agentic era, where an autonomous workflow can become exponentially larger still because the model is no longer producing one response. It is running a process. When a SaaS product redesigns itself around human-agent interaction, every task can become a chain of hidden micro-decisions, and each micro-decision consumes context, memory, tool calls, verification, and output tokens. Another point is people hear “more tokens” and think only of bigger data centers, when the deeper change is economic: software usage may stop being measured mainly by clicks, seats, or sessions. It will be measured by how much machine reasoning/tokens gets spent on behalf of each user. ---- From "Reuters" YouTube channel, (link in comment)

New video of Qualcomm CEO Cristiano Amon: AI will require “gazillions” of tokens. Because, Agentic AI will consume dramatically more tokens because it performs autonomous tasks, uses multiple systems, and interacts with tools. AI demand will grow hugely when software starts letting agents act, not just answer. A chatbot spends tokens on language; an agent spends tokens on deciding, checking, calling tools, reading outputs, revising plans, and coordinating with other software. Today a single human-AI exchange may be large, a reasoning task may be much larger, but we are already entering the agentic era, where an autonomous workflow can become exponentially larger still because the model is no longer producing one response. It is running a process. When a SaaS product redesigns itself around human-agent interaction, every task can become a chain of hidden micro-decisions, and each micro-decision consumes context, memory, tool calls, verification, and output tokens. Another point is people hear “more tokens” and think only of bigger data centers, when the deeper change is economic: software usage may stop being measured mainly by clicks, seats, or sessions. It will be measured by how much machine reasoning/tokens gets spent on behalf of each user. ---- From "Reuters" YouTube channel, (link in comment)

Rohan Paul

31,617 views • 2 months ago

Former Goldman Sachs executive Raoul Pal explains how AI is going to eat traditional software/SAAS. If your product is just software, agentic AI can reproduce it on demand, optimize it, and redeploy it to a better market. "Agentic AI means it’s like having Fiverr, a website of experts you can ask any question. It’ll go away and do the task.... Agentic AI will build, design the website, code it, register the domain name, figure out the branding, figure out the marketing, figure out the email list, figure out the whole thing. So then you and I are in competition. You’ve built this incredible new website. I just go to my AI and say, “Love Steven’s website. Can you just build it better. Boom. 3 minutes. How can we be entrepreneurs in software? Now there’s this theory going around that AI is going to eat software, and I kind of get it." ---- From 'The Diary Of A CEO and Raoul Pal The Journey Man' YT channel. (link in comment)

Former Goldman Sachs executive Raoul Pal explains how AI is going to eat traditional software/SAAS. If your product is just software, agentic AI can reproduce it on demand, optimize it, and redeploy it to a better market. "Agentic AI means it’s like having Fiverr, a website of experts you can ask any question. It’ll go away and do the task.... Agentic AI will build, design the website, code it, register the domain name, figure out the branding, figure out the marketing, figure out the email list, figure out the whole thing. So then you and I are in competition. You’ve built this incredible new website. I just go to my AI and say, “Love Steven’s website. Can you just build it better. Boom. 3 minutes. How can we be entrepreneurs in software? Now there’s this theory going around that AI is going to eat software, and I kind of get it." ---- From 'The Diary Of A CEO and Raoul Pal The Journey Man' YT channel. (link in comment)

Rohan Paul

48,418 views • 5 months ago

Former Goldman Sachs executive Raoul Pal explains how AI is going to eat traditional software/SAAS. If your product is just software, agentic AI can reproduce it on demand, optimize it, and redeploy it to a better market. "Agentic AI means it’s like having Fiverr, a website of experts you can ask any question. It’ll go away and do the task.... Agentic AI will build, design the website, code it, register the domain name, figure out the branding, figure out the marketing, figure out the email list, figure out the whole thing. So then you and I are in competition. You’ve built this incredible new website. I just go to my AI and say, “Love Steven’s website. Can you just build it better. Boom. 3 minutes. How can we be entrepreneurs in software? Now there’s this theory going around that AI is going to eat software, and I kind of get it." ---- From 'The Diary Of A CEO and Raoul Pal The Journey Man' YT channel. (link in comment)

Former Goldman Sachs executive Raoul Pal explains how AI is going to eat traditional software/SAAS. If your product is just software, agentic AI can reproduce it on demand, optimize it, and redeploy it to a better market. "Agentic AI means it’s like having Fiverr, a website of experts you can ask any question. It’ll go away and do the task.... Agentic AI will build, design the website, code it, register the domain name, figure out the branding, figure out the marketing, figure out the email list, figure out the whole thing. So then you and I are in competition. You’ve built this incredible new website. I just go to my AI and say, “Love Steven’s website. Can you just build it better. Boom. 3 minutes. How can we be entrepreneurs in software? Now there’s this theory going around that AI is going to eat software, and I kind of get it." ---- From 'The Diary Of A CEO and Raoul Pal The Journey Man' YT channel. (link in comment)

Rohan Paul

17,215 views • 1 month ago

He built an AI saas with no code. Now it makes $100K per month. The idea? Combine all AI tools into one that people actually want to pay for. I chatted with Dustin W. Stout for a few hours, so here's the top 4% of our conversation: > The $100k MRR saas he built revealed (0:59) > How to build with no coding experience and no money (03:56) > How he validated fast with $3k generated in the first month (04:13) > The no-code software he used to build the entire thing (08:10) > Why your products should not define you (10:13)

He built an AI saas with no code. Now it makes $100K per month. The idea? Combine all AI tools into one that people actually want to pay for. I chatted with Dustin W. Stout for a few hours, so here's the top 4% of our conversation: > The $100k MRR saas he built revealed (0:59) > How to build with no coding experience and no money (03:56) > How he validated fast with $3k generated in the first month (04:13) > The no-code software he used to build the entire thing (08:10) > Why your products should not define you (10:13)

Starter Story

15,356 views • 4 months ago

Fivetran CEO George Fraser's theory of the SaaSpocalypse: "There's a lot more uncertainty embedded in all these SaaS companies... than there was a year ago." "I don't really buy into this reason that all these SaaS categories are gonna disappear and be replaced with vibe-coded software. I think there will be some, but I think the bigger threat is simply new companies coming along. It is just so much easier to write software now that AI-native companies will just zoom and catch up to the established incumbents and maybe be better." George Fraser with martin_casado

Fivetran CEO George Fraser's theory of the SaaSpocalypse: "There's a lot more uncertainty embedded in all these SaaS companies... than there was a year ago." "I don't really buy into this reason that all these SaaS categories are gonna disappear and be replaced with vibe-coded software. I think there will be some, but I think the bigger threat is simply new companies coming along. It is just so much easier to write software now that AI-native companies will just zoom and catch up to the established incumbents and maybe be better." George Fraser with martin_casado

a16z

30,507 views • 2 months ago

The World’s First Truly Decentralized ChatGPT right at your fingertips: Community-hosted DeepSeek Running on Blockchain-powered AI Terminal! (1/n) Today, ChainOpera AI is proud to make history: we’ve launched the world’s first end-to-end five-layer decentralized AI stack — live in an iOS app ( giving users free access to models like DeepSeek-R1 and diverse community-built Agents. From prompt to response, human language tokens and crypto tokens flow through five layers: App, Agent, Model, GPU, and AI Chain + Smart Contracts. ChainOpera brings true decentralization to every layer — opening the AI ecosystem to users, model builders, agent devs, GPU providers, and data contributors to participate and earn.

The World’s First Truly Decentralized ChatGPT right at your fingertips: Community-hosted DeepSeek Running on Blockchain-powered AI Terminal! (1/n) Today, ChainOpera AI is proud to make history: we’ve launched the world’s first end-to-end five-layer decentralized AI stack — live in an iOS app ( giving users free access to models like DeepSeek-R1 and diverse community-built Agents. From prompt to response, human language tokens and crypto tokens flow through five layers: App, Agent, Model, GPU, and AI Chain + Smart Contracts. ChainOpera brings true decentralization to every layer — opening the AI ecosystem to users, model builders, agent devs, GPU providers, and data contributors to participate and earn.

ChainOpera AI

589,951 views • 1 year ago

AI is making software development easier than ever. One day, maybe all SaaS will provide only an API key, with no user interface, and your AI will create the interface within your OS. Maybe it's a crazy idea, but it sounds possible (and awesome), so I gave it a try: I shipped 18 new API endpoints for my web analytics SaaS DataFast ✨ All your website data is accessible programmatically: unique visitors, total revenue, pages visited, countries, etc... That way, you can vibe code an entire analytics dashboard with a 1 prompt without worrying about the complexity of the backend! If you build something on top of it, please DM me. I'd love to check it out.

AI is making software development easier than ever. One day, maybe all SaaS will provide only an API key, with no user interface, and your AI will create the interface within your OS. Maybe it's a crazy idea, but it sounds possible (and awesome), so I gave it a try: I shipped 18 new API endpoints for my web analytics SaaS DataFast ✨ All your website data is accessible programmatically: unique visitors, total revenue, pages visited, countries, etc... That way, you can vibe code an entire analytics dashboard with a 1 prompt without worrying about the complexity of the backend! If you build something on top of it, please DM me. I'd love to check it out.

Marc Lou

134,884 views • 6 months ago

In NEW Tony Robbins interview, Ray Kurzweil admits that AI will be integrated and merged into the Human body with microchips and nanobots in the bloodstream. A biological merger of human beings with AI. This is the mark. Hardware that will be connected to the software MRNA they injected in 2020 into Billions. That was the Real Agenda. It’s wide in the open just like the Gates of Hell. The American people are fools for NOT understanding what is coming. Do not comply! AI is the alien invasion and the biological merger of man and machine into an alien hybrid. Watch FULL interview and See for yourself !

In NEW Tony Robbins interview, Ray Kurzweil admits that AI will be integrated and merged into the Human body with microchips and nanobots in the bloodstream. A biological merger of human beings with AI. This is the mark. Hardware that will be connected to the software MRNA they injected in 2020 into Billions. That was the Real Agenda. It’s wide in the open just like the Gates of Hell. The American people are fools for NOT understanding what is coming. Do not comply! AI is the alien invasion and the biological merger of man and machine into an alien hybrid. Watch FULL interview and See for yourself !

Christopher Greene 😎🏝🚀⛵️

14,641 views • 2 months ago

Most of the market is priced for a world that's coming to an end. Traditional software, legacy platforms, much of the SaaS layer of the S&P 500… all built on the assumption that humans will remain the primary customers. AI agents don't buy software the way we do. They don't need dashboards, subscriptions, or logins. And once the buyer changes, so does everything built around them. The investable opportunity ahead is the agentic economy… what gets built for agents as customers. That's where the next wave of capital ends up, and most people aren't positioned for it.

Most of the market is priced for a world that's coming to an end. Traditional software, legacy platforms, much of the SaaS layer of the S&P 500… all built on the assumption that humans will remain the primary customers. AI agents don't buy software the way we do. They don't need dashboards, subscriptions, or logins. And once the buyer changes, so does everything built around them. The investable opportunity ahead is the agentic economy… what gets built for agents as customers. That's where the next wave of capital ends up, and most people aren't positioned for it.

Raoul Pal

214,419 views • 27 days ago

Jensen Huang says agentic AI is not a chatbot. It is a "digital robot" -- and the next bottleneck is not the model. It is first-person data. "Agentic AI is just a digital robot. It understands, it reasons, it plans, and it acts and uses tools." Then he makes the bigger jump: "The world's video data is from a third person, not first person. And so agentic systems, robotic systems, physical AI -- the data is the hardest problem." That is the hidden constraint in robotics. LLMs got the internet. Physical AI needs demonstrations, synthetic worlds, reinforcement learning, and first-person experience. This is why Jensen keeps calling it a stack: robots are not waiting for one magical model. They need the data engine, the simulator, the reward system, the runtime, and the computer. The next wave of AI is not just software that talks. It is software that sees, plans, acts, and eventually moves through the world.

Jensen Huang says agentic AI is not a chatbot. It is a "digital robot" -- and the next bottleneck is not the model. It is first-person data. "Agentic AI is just a digital robot. It understands, it reasons, it plans, and it acts and uses tools." Then he makes the bigger jump: "The world's video data is from a third person, not first person. And so agentic systems, robotic systems, physical AI -- the data is the hardest problem." That is the hidden constraint in robotics. LLMs got the internet. Physical AI needs demonstrations, synthetic worlds, reinforcement learning, and first-person experience. This is why Jensen keeps calling it a stack: robots are not waiting for one magical model. They need the data engine, the simulator, the reward system, the runtime, and the computer. The next wave of AI is not just software that talks. It is software that sees, plans, acts, and eventually moves through the world.

Karl Mehta

14,140 views • 1 month ago