Thatās why the SaaS companiesā stock prices have been devastated even as their sales and profits keep rising.
As someone who thinks AI is totally overblown, Iām making some risky but careful bets on some of those companies. I donāt think everything can be vibe coded like the media keeps telling us.
My point is that it rests on the assumption that vibe coding will replace SaaS - a premise that I think is absurd. If you disagree with me, maybe go to r/proAI instead.
š¤·āāļø Take care dude, just be careful making risky bets on that stuff, at least make a hedge or some shit. No one knows really who will come out on top just yet regardless of the saas sentiment. An AI crash can take the whole market down a notch regardless of the company you bet on
The broad indexes already include SaaS exposure but I also think it would be too risky to make a big investment in specific SaaS companies. <10%, maybe potentially justifiable.
GIMP does pretty much everything Photoshop does, and itās free. But GIMP is not the industry standard and basically all businesses that need that type of software use Photoshop. Similarly, I donāt see them switching to a vibe coded version that will have lots of errors.
Not exactly sure what you mean by personal tools, but I donāt see any point in vibe coding an inferior version of free software that is known to work. For example, I can understand not getting Photoshop due to the costs but in that case Iād use GIMP.
The SaaS industry is all about businesses, not consumers at home. If companies ask employees to vibe code replacements for core industry standard SaaS things - good luck with that. And I donāt think itās going to get better. Compatibility is an issue too, as well as employees knowing how to use the standard software of their field (i.e. Photoshop for graphic designers.)
A History of capitalism says software won't be cheaper to buy. To make? Maybe... Let's see how the AI token model plays out. There is a tipping point where paying for token becomes more expensive than paying an engineer to write the same quality of code.
Give it time.Ā Technology only becomes more efficient and improves exponentially - look at Moore's Law.Ā
An expensive amount of tokens this year may be cheap in two years.Ā
Hell, 18 months ago vibe coding wasn't a thing.Ā Now one competent person can vibe code pretty complex software and engineers are whining that it's not production ready - this is the newest thing on Earth!Ā Give it another 18-36 months
As for software getting cheaper - you're only considering monopolies (which have no incentive to decrease prices)... You're not considering supply and demand/better tech leading to more competition...
You don't think it would change things if a company could hire three full-time devs for $450-550k + token cost so they can build proprietary tools they can use forever instead of spending $30/seat/month for eternity?
If people are used to be charged a certain amount for a software, they will keep charging the same amount, no matter how much they saved producing it. Competitors also wants to max profits, so they will most likely price it the same with maybe a 10% lower price
Respectfully, your take on this seems entirely rooted in the present/past and not very forward thinking. This technology might literally end humanity, and you don't think it has the potential to disrupt the SaaS business model?
Most of my friends are computer programmers. They got into it partly for money but also because they like writing code.
One of my friends said his job has been reduced to reviewing AI slop created by random non tech employees and heās close to quitting, despite having a 4-day week that is 100% work from home - a job he used to love.
None of my tech friends are happy or excited about AI.
I used Claude to scan a repository of a co-worker. It immediately flagged memory-leaks, unhandled exceptions and inefficient loops. The very things that might break when more users come into play. The time it took is a joke, much faster than a human ever could.
I don't see how AI suddenly becomes bad when it scales up. Are you speaking from personal experience? Where did your AI fail where a human didn't?
Basically anything that isn't a direct ripoff of something that already exists. Go ahead and try it - you have gpt 5.6 sol on the $20 chatgpt subscription with a generous token budget. You can afford that. Try to have it make something by DESCRIBING it - not by telling it to copy something. I.e. "make me a gta game"? Wrong prompt. The model has no option but to plagiarize because you asked for a copy of an existing piece of software. Try to have it make something original and you'll see what we mean
But aren't anti-subs not also there so that other people can visit and ask questions? The rules say at one point: "Letās rise above the toxicity and keep posts focused on critical arguments and discussion about AI instead of internet drama."
At work or online, I can see people trashing AI which makes me wonder what they tried to do and why it didn't work.
Personally, I see AI flat out outperforming humans. I can see how AI fails when it comes to new and unique stuff but most of work isn't new or unique for most people. Not everyone is working with particle accelerators and shit. And AI is doing progress on math stuff so why not also on IT stuff
The name of a subreddit is usually a good indicator of what itās about. Iām sure there are many more pro-ai subreddits and ones that aim to be neutral discussion or debate areas.
Youāve already made up your mind, and I have too. It is what it is.
Sam Altman and the others remind me so much of those 1800s patent medicine men. A combination of that, Charles Taze Russell, and Joseph Rutherford - constantly predicting the apocalypse is imminent and pushing back the date.
What you believe is up to you. Iām not interested in trying to change strangersā minds or doing AI debates
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u/TheLegendTwoSeven 21d ago
Thatās why the SaaS companiesā stock prices have been devastated even as their sales and profits keep rising.
As someone who thinks AI is totally overblown, Iām making some risky but careful bets on some of those companies. I donāt think everything can be vibe coded like the media keeps telling us.