First Pour.
You’ve seen the news. Software markets crashed last week, losing over $1T in value. Investors seem to think that AI is coming for software. And I think they got it completely wrong.
In this week’s Tea (above), I dig into what software companies actually do. And spoiler alert, it’s a lot more than code.
Software companies manage the full stack of your backend: from compliance, to integration, security, orchestration, maintenance
Sure, AI can handle the coding. But who’s going to do the rest?
I feel like investors forgot the whole part about companies wanting to build their products…and not become a software infrastructure company first.
There’s no doubt that software companies will have to adapt in a world of AI and work harder to prove their value. But IMO, their core competency (infrastructure adoption, maintenance, security) becomes even more valuable in an AI world.
Something to sip on. Now let’s get you your Tech Tea 👇
Today’s Tech Menu:
Anthropic raised $30B at a $380B valuation as it competes with OpenAI toward a 2026 IPO. The frontier AI race has shifted now towards who gets public-market scale first.
Matt Shumer’s essay “Something Big Is Happening” went viral, predicting the elimination of all white-collar jobs. Personally I think his essay tends to the dramatic. More Tea this week on my socials.
Spotify says its top developers haven’t written code since December, as analysts suggest AI-generated GitHub commits will climb toward 20% this year. AI is now materially changing how software gets built. My take? Software engineers will transition from coding to AI Agent management.
The U.S. military reportedly used Anthropic’s Claude in the Venezuela operation via Palantir. AI models are now being integrated into real defense workflows, emphasizing the geopolitical significance of US models and research.
Amazon launched 32 more Project Kuiper satellites, escalating its competition with SpaceX’s Starlink. Space is the next battleground for AI. X, Amazon, and Google are starting to stake their claims.
The Steep.
I was on the Good Shift podcast this week (Youtube, Spotify) — tune in if you’d like to hear more about my story, plans for the Tea in Tech, and some hot takes in AI. The conversation from the pod I wanted to dive into here is about jobs:
It’s time we in tech admit it. AI is taking jobs.
But that’s not a complete statement IMO. Yes -- AI will eliminate certain roles. It will also expand the total pie of opportunity.
And until we cross that chasm, there's going to be growing pains. Jobs will lost; workforce structures will change.
This is not a moment to panic. It’s a moment to exercise free will.
If you're worried about AI taking your job, take control now. Upskill; reskill; network; educate yourself.
My POV is that as AI scales and automates away the busy work, it'll present a unique opportunity to us: one to lean into our humanity, creativity, and communication.
Tune in above for my full take.
What’s Been Brewing.
If I’ve missed your DMs or texts, I’m sorry. Your Tech Tea spiller has been incredibly busy. The week started with a Super Bowl comedown. It was an absolute blast and another moment of pride for my city (see last week’s newsletter for the update). Since then I’ve been heads-down in meetings and at events every single day. It’s been energizing, exciting, and exhausting.
Being invited to spend the weekend with Meta at their Super Bowl house was so special. Truly a full circle moment. Here’s my Tea; my deep dive on the Meta Ray Bans coming soon.
I’m working on a couple exciting deals that I can’t wait to share with you. 🎙️ And you heard it here first…the Tea in Tech is gearing up for a podcast! More Tea on that soon 😏 Any requests on guests or content, LMK.
Final Sip.
I went viral this week. Here’s the story of how my Waymo absolutely trolled me and how the internet continues to roast me for it. I guess this Tech girl can sometimes take an L with AI too 🤷🏽♀️
@Waymo: can a girl get a refund?! Maybe a pain and suffering discount?
Yours in Tech Tea,
Meghana