AI labs automate software development as physical moats rise

The author argues that as AI labs increasingly automate software development and control consumer access points, the main cost of building software will shift from engineering salaries to compute access. Consequently, traditional software companies face margin compression and distribution risks, while businesses with physical, real-world operational moats will become invaluable. Tech leaders must evaluate their non-software competitive advantages, model switching economics, and customer discovery paths in this new environment. Open article →