Here are the highlights from the week that was in AI and our spicy takes on what it actually means. 🌶️
This week, we're exploring the $400/year reality check that AI companies are facing, Gamma's lightning-fast product development powered by AI prototyping, and Andrej Karpathy's take on Software 2.0—the new rules for what AI can and can't automate.
On the Chipp side, Scott sat down with Coffee with a Founder to discuss democratizing AI and building outside Silicon Valley. We're breaking down the AI Shopify moment and why SMBs are about to leapfrog enterprises, plus insights from Alfredo Narez's Chipp Con talk on digital transformation that actually works. And if you haven't registered yet—learn how to price and sell your AI products in next week's workshop.
AI Highlights from Around the Web
The $400/Year AI Reality Check
Rex Salisbury breaks down what AI companies need to justify their massive investments: $400 per user per year by 2030. That's comparing AI to what Apple, Google, and Facebook make per user. JPMorgan Chase warns that lofty expectations often disappoint at first, even for world-changing tech.
🌶️ The answer is right in front of us: ads are coming to AI. And that's actually a good thing. The recent chat with Eric Seufert on Stratechery (subscription required) showed all the ways ads will help everyone access the best models for free (or low cost). Look for AI to expand the potential value per perosn with new business models.
Gamma's Lightning-Fast Product Loop
Lenny Rachitsky shares how Gamma App has cracked the code on product development. Their secret? Build a prototype in the morning with AI, test it with 20 users that afternoon, collect feedback by end of day, and iterate (or kill) based on results. They do this for everything they build.
🌶️ Quick user feedback has long been a mantra for start-ups. Now quick is hours not days.
Software 2.0 and the New Rules of Automation
Andrej Karpathy shares a fascinating take on AI's economic impact. He thinks AI isn't like electricity or the industrial revolution. It's actually a completely new computing paradigm he calls Software 2.0. The old way (Software 1.0) automated tasks that followed fixed rules and steps. The new way (Software 2.0) automates anything you can verify or measure. If an AI can practice something over and over with clear success metrics, it'll get really good at it. That's why AI crushes math and coding but still struggles with creative, strategic work that needs real-world context and common sense.
🌶️ Karpathy gives a no-hype framework for the type of software that will be built with AI. They key is verifiability. If you can verify a task was done correctly, the AI can do the task. The key will be finding what is "good" to teach the AI. Turns out we don't always know!
Chipp Updates
The Chipp Flipp: AI's Shopify Moment
SMBs are about to have better AI than enterprises, and we're building Chipp to make it happen. Scott's Chipp Con SC keynote breaks down why we're at an inflection point where small businesses have the advantage. Think about e-commerce before Shopify: big companies like Nike had world-class checkout experiences while small shops had janky PayPal links. Shopify flipped the pyramid. Now a three-person jewelry shop can have a better checkout than Nike.
We're at that exact moment with AI. Enterprises have the budgets, but they also have the baggage. You can move fast, deploy today, and give your customers the best AI experience in your industry. The updated Chipp Builder brings five major updates: Voice + Telephony, Video Generation via Veo, access to all top models, three levels of privacy plus SOC 2 Type 2 certification, and MCP support.
How Coca-Cola, GA Tech, and Aspiring Rappers Leverage AI Voice with Alfredo Narez
Alfredo Narez brought the house down at Chipp Con SC with his talk "Creator Power. Structural Support. AI ENABLED." He unpacked how digital transformation and AI create real value when teams focus on people, collaboration, and practical improvements. From teaching AI to speak Spanglish to showing how enterprises like Coca-Cola use voice on Chipp to reach customers, Alfredo made AI feel accessible and actionable for everyone.
Turn Your AI Agent Into Revenue
You've built your custom AI agent, so now the big question: how do you actually make money with it? If you haven't registered yet for our workshop next week, now's the time. Learn how to price your AI products confidently and discover how to sell them. This is the most-asked question in our community, and we're answering it live.
Register here.
![How Coca-Cola, GA Tech, and Aspiring Rappers Leverage AI Voice with Alfredo Narez [Demo]](/blog/content/images/size/w600/format/webp/2025/11/02_Narez_v01.jpg)
