What Comes Next Is Bigger Than SaaS Ever Was

https://nfx.com/post/ai-bigger-than-saas
  • AI captures labor value, not software value — 100x larger TAM.
    • SaaS: ~$1K/user/yr. AI: ~$100K/user/yr (full labor replacement).
    • $1T software market → $50–60T global labor market.
  • AI eliminates need for software by performing work autonomously.
    • Not a SaaS upgrade — the category disappears.
  • Token costs dropped ~90% in one year (OpenAI); custom software now costs pennies.
    • “Software for one” — bespoke apps built by non-programmers for single use cases.
  • Jasper case study: built tools when market wanted autonomous labor — had to pivot.
  • Category-defining products haven’t launched yet — most big opportunities undiscovered.
  • Second-order plays: no-code biz platforms, distributed software security, discovery layers.
  • Conviction + vision are the moat now — capital and talent access are commoditized.

Gigi Levy-Weiss (NFX General Partner) · 2026-02-23 · Read on nfx.com

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Added Feb 23, 2026
Modified Apr 15, 2026
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