Odd Lots Slack Founder Stewart Butterfield on AI, Software, and the End of the Tech Boom
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May 25, 2023 Stewart Butterfield, co-founder of Flickr and Slack, dives into the current turbulence in the tech sector, including widespread layoffs and the rise of AI. He reflects on how these changes challenge traditional business models and reshape workplaces. Butterfield discusses the transformative role of AI in enhancing decision-making and its implications for communication within companies. He also speculates on Microsoft's ascent in AI and the future of tech innovation, highlighting the complexities of navigating automation in business today.
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Empire Building in Tech
- Tech's rapid growth, fueled by zero interest rates and VC money, led to unsustainable hiring practices.
- Unconstrained resources incentivized empire-building, where employees' prestige and compensation were tied to the number of people they managed.
Slack's Real Growth Story
- Despite cheap money, there was real change in software consumption between the 2008 financial crisis and the pandemic.
- Slack's rapid growth to a $2B revenue run rate and public offering in five years demonstrates a real shift in user behavior and value creation.
Microsoft's AI Advantage
- Established tech giants like Microsoft can leverage vast resources and profitability to adapt and dominate new tech trends.
- Microsoft's effective partnership with OpenAI in the AI space exemplifies this, using its resources to leapfrog into the next big thing.