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📊 For the first time, software is becoming more expensive than people
New analysis from Andreessen Horowitz (a16z) reveals a surprising shift in how companies spend money on AI.
In the top 1% of AI-heavy companies, annual spending on AI tokens per employee is now approaching the average yearly salary of a software engineer.
Even more interesting? AI spending has been growing exponentially. If the trend continues, companies could soon be spending more on LLMs than on the engineers using them.
The story doesn’t end there.
The data also suggests AI isn’t simply replacing workers. Companies with the highest AI adoption grew their workforce by 10.2% within two years, while companies that invested little in AI saw almost no change in headcount.
Of course, that’s correlation, not proof of causation. Fast-growing companies may simply be the ones investing the most in AI.
@aipost 🏴
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