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site iconTomasz TunguzModify

I’m a venture capitalist since 2008. I was a PM on the Ads team at Google and worked at Appian before.
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Thinking in Systems, Shipping in Loops

2026-09-24 08:00:00

AI has removed the typing from software engineering & left the system design. DHH told Rails World that writing code by hand is no longer economically productive ; Artemis engineers merged 16 pull requests per day by August, & Lauren Tan ships 2,000 a month. The craft of fitting code together by hand is over ; what remains is designing the loop that decides whether the output is right. Donella Meadows's three properties of great system design, resilience, self-organization & hierarchy, describe how those loops are built. The architect's drafting table was always scarce because the foundation was scarce, not the talent.

The Most Important Market in AI is the Middle

2026-09-23 08:00:00

AI prices are collapsing, but the competition is not at the frontier. Anthropic held the Opus line at $5 & $25 across five releases while OpenAI cut Luna 80% then 50% again, & open models now run a majority of token volume at an 86% discount to closed models. The most capable model, Fable 5.1, commanded only 3.7% of gateway spending in its first twelve days. Demand is a normal distribution with a fat middle, & as intelligence per dollar explodes the tokens may shift to commodity. Whether that happens will determine the economics of the AI market.