The recursive iterations with AI are happening at an incredibly fast pace, with innovative breakthroughs being measured in days and weeks instead of years. This has implications for companies, as starting a company can now be done with a small team rather than a large one. It also has implications for venture capitalists, as traditional capital allocation models may not be suitable for startups that require smaller amounts of money. The VC job is changing, and company formation is being done in a different way. AI can disrupt existing businesses by cutting out sales and marketing and delivering products at a lower cost. Young entrepreneurs can use AI to build cheaper products without needing a sales team.