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AI Takes Out a Swath of Software Developers

Alex Koyfman

Written By Alex Koyfman

Posted January 10, 2024

Dear Reader,

To those of you who were worried that machines were going to replace you at your job, here’s a bit of news that might add some sweetness to the bitter outlook for the human workforce: Among AI’s first victims are workers in the tech sector — specifically, software development. 

Earlier this week, $8 billion education-tech platform proprietor Duolingo (NASDAQ: DUOL), announced that it had terminated 10% of its contractors due in large part to the growing role played by AI in the software development process. 

duolingo

Duolingo, to those unfamiliar, creates and markets mobile app products that teach foreign languages. 

The layoffs represent one of the biggest ever software payroll downsizings due to increased AI integration, and though it may make some of us tech rubes snicker as if some sort of poetic justice had been administered, the reality may be even bleaker than previously imagined. 

If this trend in software development continues and AI’s destiny is left more and more to its own devices, the road forward will grow progressively more unpredictable. 

It’s precisely this effect that futurists and even industrialists who stand to profit unimagineably from this technological revolution, have been warning us about. 

The Technological Singularity Might Already Be Here

Letting AI take too big of a role in its own evolution is the equivalent of re-inventing the atomic bomb. Once it’s there, it will never go away. 

AI’s course of growth referred to as the “technological singularity” has been the topic of endless discussion both inside and outside the fields of science and engineering.

There are, of course, positive scenarios for the arrival of the anthropotechnic age.

You may have seen them: Images of people and their intelligent, self-aware inventions living side by side, making life longer, safer and easier for all of humanity.

Of AI by AI

Something tells me few of us harbor realistic hopes that such a world will not be somehow corrupted, co-opted and ultimately sabotaged by the powers that be.  

Now, for those who are still in their Terminator mindset and want to know who’s going to be the most responsible for the machine takeover once it happens, I’ve got an answer for you that may come as a surprise. 

It’s Not Cyberdyne… But If Cyberdyne Was Real, It Would Almost Definitely Be A Client

It’s not some Silicon Valley based giant or some globally-renown tech brand like Google or Facebook… 

The company I believe is most responsible for the evolution of AI in all of its expressions is relatively unknown and based thousands of miles from the San Francisco Bay area. 

Its job is to create AI training algorithms — the software which teaches AI how to think — and its client list includes all of the usual suspects when it comes to modern consumer technology. 

Though NDAs prevent the publication of specific names, at least 4 of the 5 major tech brands (Alphabet, Meta, Amazon, Microsoft and Apple) are on this company’s client list. 

Simply put, they build the tools that others use to build today’s and tomorrow’s AI products, and they do it with a valuation under a quarter billion dollars — a pittance by Silicon Valley standards. 

In the last year, share prices have rocketed from under $4 to over $15, then plummeted with the collapse of the bubble. 

Post Bubble Rationality Has Arrived

Today, the post bubble growth period for AI has begun in earnest. 

There’s no more hype. No more emotional, crypto-level speculation. Just steady growth for the next couple decades, unless, of course, the machines take over. 

Want to learn more about this “foundational” AI play?

It’s not on the tips of too many tongues on Wall Street yet, but I can tell you for certain that it’s on the minds of managers at today’s most powerful technology companies. 

As an investor, that’s all that should matter to you.

Get all the information you need to start your due diligence.

Access my presentation, right here.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.

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