Dev Interrupted
The Build vs. Buy Debate, GenAI and Section 174 | Kelly Vaughn
Jan 30, 2024
Kelly Vaughn, Director of Engineering at Spot AI, joins the hosts to discuss the impact of tax laws on engineering teams, the evolving role of AI in software development, and the build vs. buy debate. They cover Section 174's impact on US tech companies, leadership's role in GenAI implementation, and the changing role of engineering leaders.
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Quick takeaways
- US tax law changes are pressuring tech companies to consider moving their operations outside the country, potentially impacting the dominance of US-based software startups.
- Successful integration of AI in engineering teams depends on clear intentions, effective communication, and understanding when and how to leverage AI tools.
Deep dives
The Impact of Tax Changes on US-Based Software Startups
Recent tax code changes in the US have led to tech companies considering moving their product and engineering operations outside of the country due to increased costs. The change in section 174 of the tax law has forced companies to capitalize and amortize R&D costs over five or 15 years, impacting bootstrap startups. This has raised concerns about whether the era of US-based software startup dominance is coming to an end.
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