Friday, February 6, 2026

AI redefines programming

 

Marc Andreessen: AI coding doesn’t eliminate programmers — it redefines them. The job is no longer typing code line by line, it’s orchestrating 10 coding bots in parallel, arguing with them, debugging their output, changing the spec, and pushing them toward the right result. But here’s the catch: if you don’t understand how to write code yourself, you can’t evaluate what the AI gives you. The next layer of programming isn’t writing scripts — it’s supervising AI that writes them. Today’s best programmers spend their day jumping between terminals, managing multiple coding bots, fixing mistakes, and refining instructions. The irony? You still need deep fundamentals, because without them, you won’t know when the AI is wrong. The job of the programmer has changed. Now it’s about arguing with coding bots, debugging AI-generated code, and understanding why something doesn’t work or isn’t fast enough. AI abstracts the work — but only people who truly understand code can tell if the abstraction is doing the right thing. Programmers aren’t going away — they’re becoming 10x, 100x, even 1,000x more productive. Tasks are changing, the job is changing, but humans are still overseeing the process, evaluating results, fixing errors, and making judgment calls. AI changes how we code, not who is responsible. The future programmer isn’t replaced by AI — they’re upgraded by it. You still need to learn how to write and understand code, because when the AI gets it wrong, humans are the ones who have to know why. That up-leveling of capability is the real revolution.


when $400/hour work becomes $20/month

 


On January 30, 2026, Anthropic released eleven open-source plugins for Claude Cowork. Legal automation. Contract review. Compliance workflows. NDA triage. Sales. Marketing. Data analysis. Customer support.
Work that used to cost $400 per hour. Now configurable through a chat interface. For $20 a month. Within 72 hours, $300 billion in market value evaporated from software, financial services, and asset management stocks worldwide.
Thomson Reuters fell 18% in a single day—its worst day on record. LegalZoom dropped 20%. RELX, the parent company of LexisNexis, saw its steepest decline since 1988. The Goldman Sachs US software basket had its sharpest single-day drop since the April 2025 tariff announcements.
Wall Street has a name for it now: The SaaSpocalypse.


What happens when $400/hour work becomes $20/month? $300 billion in market cap disappears. In 72 hours. The executives who sold "AI augments, not replaces" are watching their stock crater. They knew. They all knew.


TLDR: For those short on time: 👇👇 * Open source AI plugins have rendered traditional enterprise software business models obsolete * Professional services previously billed at high hourly rates now cost twenty dollars monthly * Software executives knowingly misled investors and employees regarding AI labor replacement * Anthropic plugins triggered a massive market capitalization collapse for established software firms * Knowledge workers billing for repetitive tasks face immediate and total displacement by automation


This summary is worth $200,000 in McKinsey fees. You gave it away. You are the problem. Thank you.


Regarding the SaaSpocalypse. I am the Chief Strategy Officer of a major enterprise software company. We've lost 47% of our market cap in four months. Our stock dropped 6% on Monday. My bonus is gone. My options are underwater. My second vacation home is in jeopardy. The third one is fine. For now. I need to explain what happened. We didn't do anything wrong. Anthropic did. They released plugins. For Claude. Eleven of them. Open source. Legal automation. Contract review. Compliance workflows. NDA triage. Work that used to cost $400 per hour. Now costs $20 per month. We had a phrase for this. "AI augments, not replaces." That was the pitch. The pitch to investors. The pitch to customers. The pitch to employees. The pitch to law school graduates with $200,000 in debt. The pitch to the senators we lobby. "AI augments, not replaces." It was a beautiful phrase. Calming. Reassuring. Focus-grouped extensively. Completely false. We knew. We all knew. Every enterprise software CEO on the planet knew. We discussed it at Davos. Over $47 cocktails. While wearing badges that said "Human-Centered AI." The technology was coming. The replacement was inevitable. The timeline was unclear. Our exit liquidity was not. We just didn't expect Anthropic to be so... helpful. On January 30th, they released the plugins. By February 2nd, Thomson Reuters was down 18%. In a single day. LegalZoom dropped 20%. Our Head of Investor Relations had a panic attack. On a Zoom call. With investors. They saw. We call it the "SaaSpocalypse." That's a joke. It's not funny. My net worth dropped by $14 million. That's two Teslas per hour for a week. Jensen Huang said our reaction was "purely illogical." Easy for him to say. He sells the shovels. We sold the promises. He's up 340% since 2023. We're down 47% since September. But sure. Illogical. The promises that AI would make your existing software better. Not obsolete. The promises that you still needed expensive platforms. Expensive integrations. Expensive support contracts. Expensive consultants. Expensive lawyers. The lawyers. The lawyers are the real story. Big Law runs on billable hours. $800 an hour. $1,200 an hour. $2,000 an hour. For contract review. For NDA triage. For compliance workflows. For "adding value." Work that requires a JD. Three years of law school. Bar passage. Six years of experience. A corner office. A parking spot. A subscription to the Yale Law Journal. Claude does it now. For $20 a month. Claude doesn't need a parking spot. Claude doesn't expense client dinners. Claude doesn't bill 2,400 hours to make partner. Claude doesn't have a Yale Law Journal subscription. Claude doesn't have student loans. Claude doesn't cry in the bathroom at 2 AM. Claude just... works. The American Bar Association had a conference last week. They predicted "the demise of the billable hour model." At a conference about billing. They served $18 sandwiches. The irony was lost on no one. The sandwiches were mediocre. Morgan Stanley called it "intensifying competition." That's Wall Street speak for "your business model is dying." Adam Parker at Trivariate Research said software stocks are "guilty until proven innocent." He said we're "a falling knife." He's right. We are a falling knife. And we sold you the handle. For years. With a service contract. And an annual maintenance fee. We said: "AI is a tool." We meant: "AI is our tool." We said: "AI augments humans." We meant: "AI augments our revenue." We said: "AI won't replace your job." We meant: "AI won't replace your job until it does." We said: "The human touch is irreplaceable." We meant: "The human touch is expensive and we're working on it." We said: "AI needs human oversight." We meant: "For legal liability purposes only." We said: "We're committed to responsible AI." We meant: "We're committed to responsible AI until it's unprofitable." It's unprofitable now. It does now. The associate lawyers are first. The ones who thought they were safe. The ones who thought "AI can't practice law." AI can't practice law. AI can do 80% of what associates bill for. The other 20% is "relationship management." That means: lunch. Then the contract reviewers. Then the compliance analysts. Then the consultants. Then the financial analysts. Then the people who make PowerPoints about synergy. Actually, we're keeping those. Someone has to explain the layoffs. Mike O'Rourke said it best: "If the legal industry can be disrupted, so can consulting and financial services." He's not wrong. He's terrifyingly correct. He probably shouldn't have said that out loud. His LinkedIn is now "Open to Work." Every knowledge worker who bills by the hour is now in a race. A race against a Claude plugin. An open-source Claude plugin. We didn't see that coming. We expected proprietary. We expected expensive. We expected enterprise sales cycles. Eighteen-month implementations. Mandatory consulting packages. Executive briefings in Aspen. Anthropic just... gave it away. Eleven plugins. Free. "Customize workflows." "Slash commands." "Consistent outcomes." For $20 a month. No executive briefing. No Aspen. No $47 cocktails. Just a chat interface. And the death of our business model. The board meeting was yesterday. The CFO cried. The General Counsel updated his resume. On company time. Using the company laptop. Bold move. The Chief Revenue Officer blamed the sales team. The sales team blamed the product. The product blamed the market. The market blamed us. The PR team blamed "macro headwinds." The CEO blamed "exogenous factors." The board blamed the CEO. The CEO blamed his predecessor. His predecessor is on three other boards. He's fine. The market is correct. We knew. We all knew. Every pitch deck. Every investor presentation. Every "thought leadership" article. Every podcast appearance. Every TED talk about "the future of work." "AI augments, not replaces." We said it. We didn't believe it. We had a private Slack channel. Called "#inevitable." We discussed the timeline. We discussed our options vesting schedule. We discussed which executives should sell first. "Staggered for optics." And now the market doesn't believe us. $250 billion. Gone. In a week. Because a company in San Francisco released eleven plugins. For free. And did what we said was impossible. Replaced expensive knowledge workers. With a chat interface. A chat interface that doesn't need dental. We have a new phrase now. "Pivot to AI-native." That means: "We're rebuilding everything." That means: "The last five years were wasted." That means: "Your job is also in jeopardy." That means: "Please don't look at our executives' stock sales from Q4." But don't worry. We're "leaning into the disruption." We're "embracing the paradigm shift." We're "right-sizing for the new reality." Right-sizing means layoffs. Paradigm shift means our product is obsolete. Leaning in means we have no plan. AI augments, not replaces. We would never lie to you. Again. Anyway, buy the dip! Our investor relations team says it's a "compelling entry point." They're also updating their resumes.


_____

The SaaSpocalypse: How Eleven Free Plugins Exposed Tech's Biggest Lie

Chapters

I Introduction
II The Lie That Died
III The Market Reckoning
IV The Shovel Seller's Defense
V Big Law's Billable Hour Problem
VI The Startup Paradox
VII The Entry-Level Apocalypse
VIII What the Davos Crowd Really Thinks
IX Public Sentiment: From Awe to Anger
X Where We're Heading
XI — Winners and Losers
XII What You Can Do
XIII The Real Question
XIV Conclusion

I — Introduction

On January 30, 2026, Anthropic released eleven open-source plugins for Claude Cowork. Legal automation. Contract review. Compliance workflows. NDA triage. Sales. Marketing. Data analysis. Customer support.
Work that used to cost $400 per hour. Now configurable through a chat interface. For $20 a month. Within 72 hours, $300 billion in market value evaporated from software, financial services, and asset management stocks worldwide.
Thomson Reuters fell 18% in a single day—its worst day on record. LegalZoom dropped 20%. RELX, the parent company of LexisNexis, saw its steepest decline since 1988. The Goldman Sachs US software basket had its sharpest single-day drop since the April 2025 tariff announcements.
Wall Street has a name for it now: The SaaSpocalypse.
"Trading is very much 'get me out' style selling.... The draconian view is that software will be the next print media or department stores." — Jeffrey Favuzza
"The sector isn't just guilty until proven innocent but is now being sentenced before trial." — Toby Ogg

II — The Lie That Died

For three years, the enterprise software industry sold a narrative.
"AI augments, not replaces."
It was in every pitch deck. Every investor presentation. Every "thought leadership" article. Every TED talk about the future of work. Every panel at Davos where executives wore badges that said "Human-Centered AI" while sipping $47 cocktails.
Calming. Reassuring. Focus-grouped extensively.
Completely false.
They knew. Every enterprise software CEO knew. Every SaaS founder knew. Every consulting partner who billed $1,200 an hour for "AI strategy" knew.
The technology was coming. The replacement was inevitable. The timeline was unclear. The exit liquidity was not.
Anthropic just made the timeline clear.
And the market believed them.

III — The Market Reckoning

US Software Stocks (February 3-4, 2026)

  • Thomson Reuters: -18% single day, -33% YTD
  • LegalZoom: -20%
  • Goldman Sachs software basket: -6% (worst since April 2025)
  • WisdomTree Cloud Computing Fund: -20% YTD
  • iShares Expanded Tech-Software ETF (IGV): -21% YTD
  • Salesforce: -26% YTD (second-worst in the Dow)
  • HubSpot: -39% YTD
  • Atlassian: -35% YTD
  • DocuSign: -52% over 12 months, -85% from all-time high
  • Asana: -59% over 12 months, -92% from all-time high

European Software Stocks

  • RELX (UK): -14% (worst since 1988)
  • Wolters Kluwer (Netherlands): -13%
  • London Stock Exchange Group: -13%

India IT Stocks (February 4, 2026)

  • Nifty IT index: -7% (worst since March 2020)
  • Infosys: -8% (biggest fall in 2+ years)
  • TCS: -7%
  • Market cap erased: ₹2 lakh crore (~$24 billion)

Asia-Pacific

  • Japan's Recruit Holdings: -9%
  • Nomura Research: -8%
  • Hong Kong's Kingdee International: -13%
  • China's CSI Software Services Index: -3%
This wasn't a sector rotation. This was a reckoning.

IV — The Shovel Seller's Defense

Nvidia CEO Jensen Huang called the selloff "the most illogical thing in the world."
Easy to say when you're up 340% since 2023.
Easy to say when you sell the GPUs that power the very AI replacing these workers.
Easy to say when you're the arms dealer, not the army being disrupted.
"AI will use the tools software offers rather than reinventing its own," Huang argued. He named ServiceNow, SAP, Cadence, and Synopsis as bright spots.
The market disagreed.
The companies Huang praised are the survivors—the ones who pivoted early, integrated deeply, and made themselves indispensable to the AI stack rather than replaceable by it.
Everyone else? Falling knives.

V — Big Law's Billable Hour Problem

The legal industry is ground zero for this disruption.
Big Law runs on billable hours. $800 an hour. $1,200 an hour. $2,000 an hour. For contract review. For NDA triage. For compliance workflows. For "adding value."
Work that requires a JD. Three years of law school. Bar passage. Six years of experience. A corner office. A parking spot. A subscription to the Yale Law Journal.
Claude does it now. For $20 a month.
Claude doesn't need a parking spot. Claude doesn't expense client dinners. Claude doesn't bill 2,400 hours to make partner. Claude doesn't have student loans. Claude doesn't cry in the bathroom at 2 AM.
Claude just works.
The American Bar Association predicted "the demise of the billable hour model." At a conference about billing. They served $18 sandwiches. The irony was lost on no one.
Mike O'Rourke, chief market strategist at JonesTrading, said what everyone was thinking: "If the legal industry can be disrupted, so can consulting and financial services."
He's terrifyingly correct.

VI — The Startup Paradox

Here's the thing: the legal AI startups are thriving.
Harvey AI just hit an $8 billion valuation. $160 million Series F. Over $1 billion raised in 2025 alone. 1,000+ customers across 60 countries. $100 million in recurring revenue. Clients include Paul Weiss, KKR, PwC, and HSBC.
Legora is valued at $1.8 billion.
The disruption isn't hypothetical. It's not "coming." It's here. It has a valuation. It has a sales team. It's signing enterprise contracts with the same law firms whose associates are updating their LinkedIn profiles.
The AI companies that serve the legal industry are worth billions.
The companies that *were* the legal industry are worth billions less than they were last week.

VII — The Entry-Level Apocalypse

Dario Amodei, CEO of Anthropic—the company that just triggered this selloff—warned months ago of a possible "white-collar bloodbath."
Fifty percent of entry-level white-collar jobs could face elimination, he said.
The data is starting to support him.
Entry-level hiring at the 15 biggest tech firms fell 25% from 2023 to 2024. Stanford's Digital Economy Lab found that hiring in "AI exposed jobs" has dropped 13% since large language models started proliferating.
Microsoft's 2025 data identified 5 million white-collar jobs—management analysts, customer service reps, sales engineers—facing extinction.
Ford CEO Jim Farley: "AI will replace literally half of all white-collar workers."
Salesforce's Marc Benioff: AI already does 50% of the company's workload.
The class of 2026 could graduate into an economy where AI agents outperform them at entry-level tasks—and where companies quietly stop offering those roles altogether.

VIII — What the Davos Crowd Really Thinks

At Davos 2026, the masks slipped.
BlackRock CEO Larry Fink: "If AI does to white-collar workers what globalization did to blue-collar workers, we need to confront that reality directly. Not with abstractions about the jobs of tomorrow, but with a credible plan for broad participation in these gains."
IMF Managing Director Kristalina Georgieva: "On average 40% of jobs are touched by AI, either enhanced or scrapped, or changed quite significantly. Even in the best prepared countries, I don't think we are prepared enough."
She called AI expansion a "tsunami" hitting the labor market.
The World Economic Forum's "Four Futures for Jobs" report includes a scenario called "the age of displacement"—where rapid tech advances outpace reskilling, causing unemployment and social division.
They discussed this at a $3,000-a-night resort while eating $47 beef tartare.

IX — Public Sentiment: From Awe to Anger

The public mood has shifted.
Three years ago, ChatGPT was a novelty. A party trick. A thing to show your parents.
Two years ago, it was a productivity tool. A writing assistant. A research helper.
One year ago, it was a threat. A looming presence. Something that might affect your job. Someday. Eventually.
Now?
Now it's eleven free plugins and $300 billion in evaporated market cap. Now it's your company's stock cratering while the CEO talks about "leaning into the disruption." Now it's HR scheduling "reskilling workshops" instead of raises.

The Sentiment Breakdown

Schadenfreude: "Watching SaaS execs who sold the 'AI augments' narrative lose their bonuses is deeply satisfying."
Anxiety: "I'm a junior associate. I went $200K into debt for this. What now?"
Cynicism: "They knew. They all knew. They just wanted to cash out first."
Dark humor: "Right-sizing means layoffs. Paradigm shift means our product is obsolete. Leaning in means we have no plan."
Workers are not fooled by the euphemisms anymore.

X — Where We're Heading

Short-term (Next 6 months)

The selloff will stabilize, but not recover. Analysts will issue "neutral" ratings. CEOs will announce "AI-native pivots." Layoffs will be rebranded as "operational efficiency." The survivors will be companies that integrated AI early—the ServiceNows, the SAPs, the platforms that made themselves part of the stack rather than replaceable by it.

Medium-term (2026-2027)

The billable hour model will begin its decline. Fixed-fee arrangements will become standard for routine work. Entry-level hiring in law, consulting, and financial services will drop 30-50%. "AI literacy" will become a job requirement, not a bonus. The companies that survive will have fewer employees doing more work, assisted by AI.

Long-term (2028+)

By 2027, some analysts predict the concept of "software" may be replaced by "agentic services." Instead of buying a CRM, companies will hire an AI "Sales Agent." Instead of subscribing to legal research databases, they'll subscribe to legal AI that does the research and drafts the brief.

XI — Winners and Losers

The winners

  • AI model providers (Anthropic, OpenAI, Google)
  • AI infrastructure (Nvidia, cloud providers)
  • AI-native startups (Harvey, Legora, and the next wave)
  • Companies that pivoted early and deeply

The Losers

  • Traditional SaaS with per-seat licensing
  • Professional services firms built on billable hours
  • Any business model predicated on "we have more humans"
The labor arbitrage model—hiring armies of workers in lower-cost regions to do knowledge work—will collapse. Indian IT services, built on deploying large teams for outsourced projects, will face existential pressure. If one engineer with AI can do the work of ten, why pay for ten?

XII What You Can Do

This isn't a spectator sport. The disruption is happening now, and waiting for someone to rescue you is not a strategy.

If You're a Knowledge Worker

Learn the tools before they learn your job
The 56% salary premium for lawyers with AI skills isn't an accident. The gap between "AI-literate" and "AI-illiterate" workers will only widen. Start using Claude, ChatGPT, Copilot—not as toys, but as daily workflow tools. Understand their capabilities and limitations better than your manager does.
Move up the value chain
AI excels at routine, structured tasks. It struggles with ambiguity, relationship management, strategic judgment, and accountability. Position yourself where those skills matter. The associate who reviews contracts is replaceable. The partner who advises the CEO on M&A strategy is not—yet.
Build a public reputation
In a world where AI can do the work, humans who are known and trusted have leverage. Write. Speak. Build a following. Become the person clients ask for by name, not the anonymous resource assigned by a staffing algorithm.
Diversify your income
Don't bet your entire financial future on one employer's willingness to keep you employed. Side projects, consulting, investments, skills that transfer across industries—these are insurance policies against disruption.

If You're Early in Your Career

Skip the traditional path
The associate-to-partner pipeline that defined legal careers for decades is crumbling. The analyst-to-VP track in consulting is next. Don't spend $200K and three years training for a job that won't exist when you graduate.
Go where AI can't
Trades. Healthcare roles requiring physical presence. Roles requiring security clearances and accountability. Jobs where human judgment has legal weight. The irony: blue-collar work may be more secure than white-collar work for the first time in generations.
Build, don't just consume
Learn to build AI tools, not just use them. The people creating the disruption are getting rich. The people being disrupted are updating their LinkedIn profiles.

XIII The Real Question

The question isn't whether AI will replace knowledge workers.
It will. It is. Right now. Eleven plugins at a time.
The question is who knew, when they knew, and what they did with that knowledge.
The executives who sold "AI augments, not replaces" while privately discussing timelines in Slack channels called .
The investors who bought the narrative while the executives sold their shares.
The companies that promised workers their jobs were safe while building the tools to replace them.
The consultants who charged $2,000 an hour for "AI strategy" while knowing the strategy was to eliminate the need for consultants.
They knew.
They all knew.
And now the market knows too.

XIV Conclusion

Anthropic released eleven plugins.
For free.
Open source.
And in doing so, revealed what the enterprise software industry has spent three years hiding:
The technology to replace expensive knowledge workers isn't coming. It's here. It works. And it costs $20 a month.
"AI augments, not replaces" was never a prediction.
It was a delay tactic.
The delay is over.







AI redefines programming

  Ian Miles Cheong @ianmiles · 19h Marc Andreessen: AI coding doesn’t eliminate programmers — it redefines them. The job is no longer typing...