Why generative AI breaks tech's traditional economics
A deep-dive analysis argues that generative AI and foundation models are breaking the historical mediocrity spiral of legacy software. Unlike older systems crippled by long-tail accuracy costs and human-in-the-loop overhead, consumer hits like ChatGPT and Character.AI are unlocking unprecedented organic adoption. Why it matters: Startups finally have the growth velocity and defensibility to challenge entrenched incumbents rather than ending up as bespoke IT services.