The Cost of Code Is Going to Zero (keon.kim)

Anthropic has introduced its Claude Cowork plugins for various industries and released Claude Opus 4.6, a groundbreaking model capable of orchestrating entire AI agent teams. This rapid innovation has triggered a significant market sell-off in the software sector, with a drastic drop in the market capitalizations of major companies like Salesforce and Adobe. While analysts were raising earnings estimates during this time, investors are increasingly worried that traditional software companies may become obsolete within five years, as AI models redefine market dynamics. The significance of this shift lies in the fundamentally altered economics of software development. Historically, the software-as-a-service (SaaS) model thrived on the assumption that creating software was costly and labor-intensive. However, advancements in AI are lowering production costs dramatically, allowing individuals to develop complex applications rapidly. This change could lead to the commoditization of software, where the value extracted by companies diminishes as more players can produce similar offerings at lower prices. The companies that survive will likely be those that can deliver unique value beyond mere data storage and access, focusing instead on executing tasks directly with AI agents and capitalizing on the potential labor arbitrage that automation presents.