Episode 2245: Is it really "not hard" to be a billionaire these days?

Lots of healthy disagreement in this week’s THAT WAS THE WEEK tech show with Keith Teare. We debate the impact of AI on coding jobs, with Keith suggesting that while traditional coding skills may become less important, system architecture and AI guidance skills will be crucial to maintaining the value of human labor. We also discuss the rise of early-stage unicorns, military-tech AI start-ups, and disagree strongly on the status of billionaires, with Keith arguing that it’s “not hard” to be a billionaire in Silicon Valley today.

Here are the five KEEN ON takeaways from today’s conversation:

* Divergent Market and Valley Sentiment: While the stock market is having its worst performance since Trump's inauguration, Silicon Valley remains optimistic, particularly about AI. Keith argues there's no short-term correlation between Silicon Valley sentiment and market performance.

* Evolution of Tech Skills: The rise of AI is changing the nature of technical skills needed in startups. Keith suggests that traditional coding skills are becoming less crucial, while the ability to architect systems and guide AI is becoming more important. He notes that universities are already adapting their computer science programs to include AI.

* Rise of Efficient Startups: AI is enabling lean startups to do more with fewer people. Keith uses his own company Signal Rank as an example, noting they've built a complex system with just five people, two of whom are coders, highlighting a shift in how startups can be built efficiently.

* Military-Tech Convergence: There's a growing trend of Silicon Valley companies entering the defense sector, exemplified by Saronic raising $600 million for autonomous warships. This represents a broader shift in how military technology is being developed and funded through private companies.

* Debate about Wealth Creation: The conversation concludes with a debate about wealth accumulation, sparked by Robert Reich's controversial X post about billionaires. Keith argues that technology's global reach and distribution capabilities have made it easier than ever to build valuable companies, with Andrew strongly disputing the idea that becoming a billionaire is "not that hard."

That Was The Week - February 22, 2025

With Andrew Keen and Keith Teare

Andrew Keen: Hello everybody. It is Saturday, February the 22nd, 2025. The last Saturday in February, the last Saturday we're going to do That Was The Week tech roundup. It's been an odd week. On the one hand, the stocks notched the worst week since Trump's inauguration six weeks ago. It's been a long six weeks. According to the Financial Times, the geopolitical rupture, which of course has been caused by Trump, has sparked a quiet market rebellion. Niall Ferguson had an interesting piece in today's Wall Street Journal about the demise of the United States because of its massive debt, and Elon Musk has been continuing to make a public fool of himself this week, waving a chainsaw and pretending to be an Argentine politician, which I'm not sure reflects that well on him. However, in spite of all that bad news, Keith Teare's That Was The Week newsletter is actually very optimistic. Unicorns are back, according to Keith, and we have an image, of course, created by AI of these imaginary beasts horses with horns. Keith is joining us, as always, from Palo Alto, the home of optimism. Keith, do you think it's coincidental that suddenly everyone is optimistic again in Silicon Valley whilst the market is sliding to those two things in an odd way, kind of go together?