@techtalkjp: You can probably build a software factory in about a week. Once you're confident it's reliable, take it to production. Output goes up 10x. But at the same time, token costs and CI costs also go 10x. If revenue doesn't change as a result, then you've just made costs 10x higher, meaning productivity in the true sense drops to 1/10...

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A reflection on the economics of the AI coding era: building a software factory in one week and taking it to production can boost output 10x, but token costs and CI costs also rise 10x — so if revenue doesn't increase, real productivity effectively drops to 1/10.

You can probably build a software factory in about a week. Once you determine it's reliable, take it to production. Output goes up 10x. At the same time, token costs and CI costs also go up 10x. If revenue doesn't change as a result, then you've simply made costs 10x higher, and productivity in the true sense drops to 1/10. So what do you do?
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Cached at: 10/18/26, 05:07 AM

A software factory can probably be built in about a week. Once we determine it’s reliable, we go to full production. Output increases 10x.

At the same time, token costs and CI costs also go up 10x.

If revenue doesn’t change, we’ve just increased costs by 10x — meaning our true productivity has dropped to 1/10.

What do we do?

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