[HN Gopher] AI is ushering in a 'tiny team' era
       ___________________________________________________________________
        
       AI is ushering in a 'tiny team' era
        
       Author : kjhughes
       Score  : 63 points
       Date   : 2025-06-21 18:21 UTC (4 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | kjhughes wrote:
       | https://archive.ph/YHr9s
        
       | apical_dendrite wrote:
       | When I worked at a startup that tried to maximize revenue per
       | employee, it was an absolute disaster for the customer. There was
       | zero investment in quality - no dedicated QA and everyone was way
       | too busy to worry about quality until something became a crisis.
       | Code reviews were actively discouraged because it took people off
       | of their assigned work to review other people's work. Automated
       | testing and tooling were minimal. If you go to the company's
       | subreddit, you'll see daily posts of major problems and people
       | threatening class-action lawsuits. There were major privacy and
       | security issues that were just ignored.
        
         | ldjkfkdsjnv wrote:
         | Theres two types of software, the ones no one uses, and the
         | ones people complain about
        
           | hackable_sand wrote:
           | Everyone should just write their own software then.
        
           | apical_dendrite wrote:
           | I've worked at a number of companies - the frequency and
           | seriousness of customer issues was way beyond anything I've
           | experienced anywhere else.
        
         | golergka wrote:
         | Really depends on the type of business you're in. In the
         | startup I work in, I worked almost entirely on quality of
         | service for the last year, rarely ever on the new features --
         | because users want to pay for reliability. If there's no
         | investment in quality, then either the business is making a
         | stupid decision and will pay for it, or users don't really care
         | about it as much as you think.
        
       | geremiiah wrote:
       | AI helps you cook code faster, but you still need to have a good
       | understanding of the code. Just because the writing part is done
       | quicker doesn't mean a developer can now shoulder more
       | responsibility. This will only lead to burn out, because the
       | human mind can only handle so much responsibility.
        
         | crystal_revenge wrote:
         | > but you still need to have a good understanding of the code
         | 
         | I've personally found this is where AI helps the _most_. I 'm
         | often building pretty sophisticated models that also need to
         | scale, and nearly all SO/Google-able resources tend to be stuck
         | at the level of "fit/predict" thinking that so many DS people
         | remain limited to.
         | 
         | Being able to ask questions about non-trivial models as you
         | build them, really diving into the details of exactly how
         | certain performance improvements work and what trade offs there
         | are, and even just getting feed back on your approach is a huge
         | improvement in my ability to really land a solid understanding
         | of the problem and my solution before writing a line of code.
         | 
         | Additionally, it's incredibly easy to make a simple mistake
         | when modeling a complex problem and getting that immediate
         | feedback is a kind of debugging you can otherwise only get on
         | teams with multiple highly-skill people on them (which at a
         | certain level is a luxury reserved only for people working a
         | large companies).
         | 
         | For my kind of work, vibe-coding is laughably awful, primarily
         | because there aren't tons of examples of large ML systems for
         | the relatively unique problem you are often tasked with. But
         | avoiding mistakes in the initial modeling process feels like a
         | super power. On top of that, quickly being able to refactor
         | early prototype code into real pipelines speeds up many of the
         | most tedious parts of the process.
        
         | hnthrow90348765 wrote:
         | They often combine front end and back end roles (and sometimes
         | sysadmin/devops/infrastructure) into one developer, so now I
         | imagine they'll use AI to try and get even more. Burnout be
         | damned, just going by their history.
        
       | ryandrake wrote:
       | It seems like a more and more recurring shareholder wet dream
       | that companies could one day just be AI employees for digital
       | things + robotic employees for physical things + maybe a human
       | CEO "orchestrating" everything. No more icky employees siphoning
       | off what should rightfully be profit for the owners. It's like
       | this is some kind of moral imperative that business is always
       | kind of low-key working towards. Are you rich and want to own
       | something like a soup company? Just lease a fully-automated
       | factory and a bunch of AI workers, and you're instantly shipping
       | and making money! Is this capitalism's final end state?
        
         | mechagodzilla wrote:
         | If anyone can pay-as-you-go use a fully automated factory, and
         | the factories are interchangeable, it seems like the value of
         | capital is nearly zero in your envisioned future. Anyone with
         | an idea for soup can start producing it with world class
         | efficiency, prices for consumers should be low and variety
         | should be sky-high.
        
         | rahimnathwani wrote:
         | If I'm buying soup, I'd prefer the manufacturer, the retailer,
         | and any other part of the supply chain to be as efficient as
         | possible, so they can compete in the market to offer me soup of
         | a given quality at the lowest possible cost.
         | 
         | An individual consumer doesn't derive any benefit from
         | companies missing out on automation opportunities.
         | 
         | Would you prefer to buy screws that are individually made on a
         | lathe?
        
           | mikeocool wrote:
           | Personally, the best soups I've ever had were not made in
           | kitchens that were optimized for efficiency or automation,
           | they were optimized for quality.
           | 
           | They weren't cheap soups, but they sure were good.
        
             | dyauspitr wrote:
             | Quality is a function of the ingredients used and the
             | correct preparation. Neither of these things are something
             | machines can't do.
        
             | awb wrote:
             | Luxury goods and staple goods have distinct optimizations,
             | both viable for generating profits and economic utility.
             | 
             | A high end soup and an affordable soup might be serving two
             | different markets.
        
           | goatlover wrote:
           | I'd prefer not to live in a fully automated society where
           | shareholders and CEOs reap all the profits while the rest of
           | us scrape by on just enough UBI to prevent a revolution.
        
             | jack_h wrote:
             | I don't understand this scenario. If everyone is on UBI
             | then most people are essentially near poverty. Where are
             | these CEOs deriving all of their profit from?
             | 
             | I personally think a far more likely scenario is that small
             | businesses of one or a few people become vastly more
             | commonplace. They will be able to do a lot more by
             | themselves, including with less expertise in areas they may
             | not have a lot of knowledge in. I don't think regular
             | employees today should see LLMs as competition, rather they
             | should see it as a tool they can use to level the playing
             | field against current CEOs.
        
           | rightbyte wrote:
           | > Would you prefer to buy screws that are individually made
           | on a lathe?
           | 
           | I don't think that was your point but pressed screws got way
           | better properties than cut screws.
        
           | delusional wrote:
           | You're picturing a utopia at the limit of some idealized
           | world. Try and take a second to return to planet earth.
           | 
           | There will not be a "quality" dial that you get to tweak to
           | decide on your perfect quality of soup. There will be
           | graduations, and you will be stuck with whatever the store
           | provides. If you want medium quality soup, but the store only
           | carries 3 brands of soup (because unlike in your utopia
           | somebody actually has to maintain an inventory and
           | relationships with their supply chain) and your favourite
           | brand decides to bottom out their quality. It's not "good
           | actually" because of economic whatever. Your soup just sucks
           | now.
           | 
           | Oh but "the market will eventually provide a new brand" is a
           | terrible strategy when they start spicing the soup with lead
           | to give it cinnamon flavor or whatever.
           | 
           | I'm not an ethereal being. I'm a human, I need it to be good
           | now. Not in theory land.
        
             | rahimnathwani wrote:
             | You describe three potential undesirable outcomes:
             | 
             | - consolidation, such that there are only a few different
             | choices of soup
             | 
             | - a race to the bottom in quality
             | 
             | - poisoning
             | 
             | These are all possibilities under our _current_ system, and
             | we have mechanisms (laws and market competition) which
             | limit the extent to which they occur.
             | 
             | What is it about extreme automation technology that you
             | think will increase these prevalence of these issues? By
             | what mechanisms will these issues occur more frequently
             | (rather than less frequently), as production technology
             | becomes more capable?
        
         | Hammershaft wrote:
         | Sounds unironically great if we could do it, the productivity
         | improvements would allow dramatic improvements in living
         | standards with moderate redistribution. I don't think this is
         | where these llms are getting us.
        
       | WXLCKNO wrote:
       | I'm working on a bunch of different projects trying out new stuff
       | all the time for the past six months.
       | 
       | Every time I do something I add another layer of AI
       | automation/enhancement to my personal dev setup with the goal of
       | trying to see how much I can extend my own ability to produce
       | while delivering high quality projects.
       | 
       | I definitely wouldn't say I'm 10x of what I could do before
       | across the board but a solid 2-3x average.
       | 
       | In some respects like testing, it's perhaps 10x because having
       | proper test coverage is essential to being able to let agentic AI
       | run by itself in a git worktree without fearing that it will fuck
       | everything up.
       | 
       | I do dream of a scenario where I could have a company that's
       | equivalent to 100 or 1000 people with just a small team of close
       | friends and trusted coworkers that are all using this kind of
       | tooling.
       | 
       | I think the feeling of small companies is just better and more
       | intimate and suits me more than expanding and growing by hiring.
        
         | charliebwrites wrote:
         | > Every time I do something I add another layer of AI
         | automation/enhancement to my personal dev setup with the goal
         | of trying to see how much I can extend my own ability to
         | produce while delivering high quality projects
         | 
         | Can you give some examples? What's worked well?
        
           | jprokay13 wrote:
           | If you haven't, adding in strict(er) linting rules is an easy
           | win. Enforcing documentation for public methods is a great
           | one imo.
           | 
           | The more you can do to tell the AI what you want via a "code-
           | lint-test" loop, the better the results.
        
             | crgwbr wrote:
             | Honestly the same is true for human devs. As frustrating as
             | strict linting can be for newer devs, it's way less
             | frustrating than having all the same issues pointed out in
             | code review. That's interesting because I've been finding
             | that all sorts of stuff that's good for AI is actually good
             | for humans too, linting, fast easy to run tests,
             | standardized code layouts, etc. Humans just have more
             | ability to adapt to oddities at the moment, which leads to
             | slack.
        
           | malux85 wrote:
           | For us it's been auto-generating tests - we focus efforts on
           | having the LLM write 1 test, manually verifying it. Then use
           | this as context and tell the llm to extend to all space
           | groups and crystal systems.
           | 
           | So we get code coverage without all the effort, it works well
           | for well defined problems that can be verified with test.
        
           | haiku2077 wrote:
           | - Extremely strict linting and formatting rules for every
           | language you use in a project. Including JSON, YAML, SQL.
           | 
           | - Using AI code gen to make your own dev tools to automate
           | tasks. Everything from "I need a make target to automate
           | updating my staging and production config files when I make
           | certain types of changes" or "make an ETL to clean up this
           | dirty database" to "make a codegen tool to automatically
           | generate library functions from the types I have defined" and
           | "generate a polished CLI for this API for me"
           | 
           | - Using Tilt (tilt.dev) to automatically rebuild and live-
           | reload software on a running Kubernetes cluster within
           | seconds. Essentially, deploy-on-save.
           | 
           | - Much more expansive and robust integration test suites with
           | output such that an AI agent can automatically run
           | integration tests, read the errors and use them to iterate.
           | And with some guidance it can write more tests based on a
           | small set of examples. It's also been great at adding
           | formatted messages to every test assertion to make failed
           | tests easier to understand
           | 
           | - Using an editor where an AI agent has access to the
           | language server, linter, etc. via diagnostics to
           | automatically understand when it makes severe mistakes and
           | fix them
           | 
           | A lot of this is traditional programming but sped up so that
           | things that took hours a few years ago now take literally
           | minutes.
        
             | handfuloflight wrote:
             | Even things that took days or weeks are being done in
             | minutes now. And a few hours on top to ensure correctness.
        
             | jay_kyburz wrote:
             | I worry that once I've done all that I won't have time for
             | my actual work. I also have to investigate all these new AI
             | editors, and sign up for the API's and work out which is
             | best, then I have to learn how to prompt properly.
             | 
             | I worry that messing with the AI is the equivalent of
             | tweaking my colour schemes and choosing new fonts.
        
         | teaearlgraycold wrote:
         | Definitely agree small teams are the way to go. The bigger the
         | company the more cognitive dissonance is imposed on the
         | employees. I need to work where everyone is forced to engage
         | with reality and those that don't are fired.
        
         | ujkhsjkdhf234 wrote:
         | Instagram was 13 employees before they were purchased by
         | Facebook. The secret is most employees in a 1000 person company
         | don't need to be there or cover very niche cases that your
         | company likely wouldn't have.
        
         | ChrisMarshallNY wrote:
         | A while back, someone here linked to this story[0].
         | 
         | It's a bit simplified and idealized, but is actually fairly
         | spot-on.
         | 
         | I have been using AI every day. Just today, I used ChatGPT to
         | translate an app string into 5 languages.
         | 
         | [0] https://www.oneusefulthing.org/p/superhuman-what-can-ai-
         | do-i...
        
           | stephen_g wrote:
           | Hopefully it's better for individual strings, but I've heard
           | a few native speakers of other languages (who also can speak
           | English) complaining about websites now serving up AI-
           | translated versions of articles by default. They are better
           | than Google Translate of old, but apparently still bad enough
           | that they'd much rather just be served the English
           | original...
           | 
           | I guess similar to my experience with the AI voice
           | translation YouTube has, I've felt similar - I'd rather
           | listen to the original voice but with translated subtitles
           | than a fake voice.
        
             | ChrisMarshallNY wrote:
             | Exactly. I wouldn't use it for bulk translations. This was
             | literally, 4 words.
             | 
             | What was useful, was that I could explain exactly what the
             | context was, in both a technical and usability context, and
             | it understood it enough to provide appropriate
             | translations.
        
       | ldjkfkdsjnv wrote:
       | I think this is the beginning of the end of early stage venture
       | capital in b2b saas. Growth capital will still be there, but
       | increasingly there will be no reason to raise. It will empower
       | individuals with actual skill sets, rather than those with fancy
       | schools on their resume
        
         | lmeyerov wrote:
         | I think bar for b2c, prosumer, SMB, yes.. folks want to see
         | fast revenue growth (vs eyeballs & ideas)... but enterprise...
         | not as much, and that's half the b2b market
         | 
         | Reverse there afaict, enterprise + defense tech are booming. AI
         | means get to do a redo + extension of the code automation era.
         | It's fairly obvious to buyers + investors this time around so
         | don't even need to educate. Likewise, in gov/defense tech,
         | palantir broke the dam, and most of our users there have an
         | instinctive allergic reaction to palantir+xai, so pretty
         | friendly.
        
       | nemothekid wrote:
       | I'm not entirely convinced this trend is because AI is letting
       | people "manage fleets of agents".
       | 
       | I do think the trend of the tiny team is growing though and I
       | think the real driver were the laysoffs and downsizings of 2023.
       | People were skeptical if Twitter would survive Elon's massive
       | staff cuts and technically the site has survived.
       | 
       | I think the era of the 2016-2020 empire building is coming to an
       | end. Valuing a manager on their number of reports is now out of
       | fashion and theres now no longer any reason to inflate team
       | sizes.
        
         | simonw wrote:
         | I think the productivity improvement you can get just from
         | having a decent LLM available to answer technical questions is
         | significant enough already even without the whole Agent-based
         | tool-in-a-loop thing.
         | 
         | This morning I used Claude 4 Sonnet to figure out how to build,
         | package and ship a Docker container to GitHub Container
         | Registry in 25 minutes start to finish. Without Claude's help I
         | would expect that to take me a couple of hours at least... and
         | there's a decent chance I would have got stuck on some minor
         | point and given up in frustration.
         | 
         | Transcript:
         | https://claude.ai/share/5f0e6547-a3e9-4252-98d0-56f3141c3694 -
         | write-up: https://til.simonwillison.net/github/container-
         | registry
        
           | jordanb wrote:
           | Eh I felt that way about the internet in 2010s. Seemed like
           | virtually any question could be answered by a google query.
           | People were making jokes that a programmer's job mostly
           | consisted of looking things up on stack overflow. But then
           | google started sucking and SO turned into another
           | expertsexchange (which was itself good in the 2000s).
           | 
           | So far from what I've experienced AI coding agents automate
           | away the looking things up on SO part (mostly by violating
           | OSS licenses on Github). But that part is only bad because
           | the existing tools for doing that were intentionally
           | enshitified.
        
             | tasty_freeze wrote:
             | > expertsexchange
             | 
             | My vote for the unintentionally funniest company name. I
             | wonder if they were aware when the landed on it, or if they
             | were so deep in the process that it was too late to change
             | course when they realized what they had done.
        
           | nemothekid wrote:
           | I'm not denying LLMs are useful. I believe the trend was
           | going to happen whether regardless of how useful LLMs are.
           | 
           | AI ended up being a convenient excuse for big tech to justify
           | their layoffs, but Twitter already painted a story about how
           | bloated some organizations were. Now that there is no longer
           | any status in having 9,001 reports the pendulum has swing the
           | other way - it's now sexy to brag about how _little_ people
           | you employ.
        
         | TZubiri wrote:
         | "and technically the site has survived."
         | 
         | Only if you squint. If you look at the quality of the site, it
         | has suffered tremendously.
         | 
         | The biggest "fuck you" are phishers buying blue checkmarks and
         | putting the face of the CEO and owner to shill scams. But you
         | also have just extremely trash content and clickbaits
         | consistently getting (probably botted) likes and appearing in
         | the top of feeds. You open a political thread and somehow
         | there's a reply of a bear driving a bicycle as the top
         | response.
         | 
         | Twitter is dead, just waiting for someone to call it.
        
       | dboreham wrote:
       | Like Johnny Depp in that movie..
        
         | khazhoux wrote:
         | You're gonna have to be more specific
        
         | noman-land wrote:
         | How come you put two dots instead of one or three?
        
       | satvikpendem wrote:
       | I read a few books the other day, _The Million-dollar, One-person
       | Business_ and _Company of One_. They both discuss how with the
       | advances of code (to build a product with), the infrastructure to
       | host them (with AWS so that you don 't need to build data
       | centers), and the network of people to sell to (the Internet in
       | general, and more specifically social media, both organic and
       | ads-based), the likelihood of running a large multi-million-
       | dollar company all by yourself greatly increases in a way it has
       | never done in the history of humanity before.
       | 
       | They were written before the advent of ChatGPT and LLMs in
       | general, especially coding related ones, so the ceiling must be
       | even greater now, and this is doubly true for technical founders,
       | for LLMs aren't perfect and if your vibed code eventually breaks,
       | you'll need to know how to fix it. But yes, in the future with
       | agents doing work on your behalf, maybe your own work becomes
       | less and less too.
        
       | JaggerFoo wrote:
       | Some excellent ideas presented in the article. It doesn't matter
       | if they all pan out, just that they expand our thinking into the
       | realm of AI and its role in the future of business startups and
       | operations.
       | 
       | Revenue per employee, to me, is an aside that distracts from the
       | ideas presented.
        
       | TaylorGood wrote:
       | It's true, especially with the "vibe" movement happening in real-
       | time on X... "you can just do things" -- I am building ai app
       | layers b2c/b2b and while I do have an ml technical co-founder, I
       | am largely scaling this with AI from strategy, visuals to coding.
       | For example, with Claude created a framework for my company to
       | scale, then built an AI powered dashboard in cursor around it as
       | the command center. At scale we don't need a team of more than ~5
       | to reach 7 fig MRR.
       | 
       | Greg Isenberg has some of the best takes on this on X. He
       | articulates the paradigm shift extremely well.. @gregisenberg --
       | one example:
       | https://x.com/gregisenberg/status/1936083456611561932?s=46)
        
         | delusional wrote:
         | > 26. lots of first-time founders will build faster than
         | veterans because they are more AI fluent/grew up on vlogging.
         | 
         | Ahh yes, fantastic insights.
        
       | runako wrote:
       | AI gets top billing, but the assault via tax code on engineering
       | employment is likely a bigger factor.
       | 
       | https://news.ycombinator.com/item?id=44226145
        
       | spacemadness wrote:
       | I think we're going to have to deal with the stories of
       | shareholders wetting themselves over more layoffs more than we're
       | going to see higher quality software produced. Everyone is
       | claiming huge productivity gains but generally software quality
       | and new products being created seem at best unchanged. Where is
       | all this new amazing software? It's time to stop all the talk and
       | show something. I don't care that your SQL query was handled for
       | you, thats not the bigger picture, that's just talk.
        
         | delusional wrote:
         | This has been an industry wide problem at silicon valley for
         | years now. For all their talks of changing the world, what
         | we've gotten the last decade has been taxi and hotel apps.
         | Nothing truly revolutionizing.
        
       | altairprime wrote:
       | The subhead makes a specific misstatement:
       | 
       | > _Startups used to brag about valuations and venture capital.
       | Now AI is making revenue per employee the new holy grail._
       | 
       | The corrected form is:
       | 
       | > _Startups used to brag about valuations and venture capital.
       | Now AI is making_ rate of revenue growth _per employee the new
       | holy grail._
       | 
       | Specifically, as with all growth capitalism, it is long-term
       | irrelevant how much revenue each employee generates. The factor
       | that is being measured is how much each employee increases the
       | rate of growth of revenue. If a business is growing revenue at
       | +5% YoY, then a worker that can increase that rate by 20% (to +6%
       | YoY) is worth keeping; a worker that can only increase revenue by
       | 5% contributed +0% YoY after the initial boost and will be
       | replaced by automation, AI, etc. (This is also why tech won't
       | invest in technical debt: it may lower expenses, but those one-
       | time efficiencies are typically irrelevant when increasing the
       | rate of growth of income results in far more income than the
       | costs of the debt.)
        
       | neom wrote:
       | One area of business that I'm struggling in is now boring it is
       | talking to an LLM, I enjoy standing at a whiteboard thinking
       | through ideas, but more and more I see push for "talk to the llm,
       | ask the llm, the llm will know" - The LLM will know, but I'd
       | rather talk to a human about it. Also in pure business, it takes
       | me too long to unlock nuances that an experienced human just
       | knows, I have to do a lot of "yeah but" work, way way more than I
       | would have to do with an experienced humans. I like LLMs and I
       | push for their use, but I'm starting to find something here and I
       | can't put my finger on what it is, I guess they're not wide
       | enough to capture deep nuances? As a result, they seem pretty bad
       | at understanding how a human will react to their ideas in
       | practice.
        
       | lpa22 wrote:
       | AWS, GCP and other cloud providers play just as large of a role
       | in allowing for tiny teams. Used to need an ops team of 10+
       | people to do all the stuff on premise that AWS can do
        
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