AI & Enterprise
What happens as software development costs move toward zero?
Mike Vernal, an investor and engineer at Conviction, likened the future of the software industry to changes in the newspaper business after the internet. He said newspapers split between top global brands and individual operators as distribution costs fell. Vernal said AI could push software the same way by driving development costs toward zero and weakening moats such as high build costs, switching costs and network effects. He argued scale, brand and rapid reinvestment would matter more.
