Qiao Wang: AI coding tools are revolutionizing productivity for startups, the competitive moats of tech giants remain intact, and personalized marketing will dominate the future

Key Takeaways

• The line between general chatbots and coding is becoming indistinct as coding evolves into plain English instructions.
• AI coding agents are not expected to eliminate the competitive advantages of established tech giants.
• Opus 4.5 marks a significant advancement in AI coding capabilities, enhancing the completion of complex tasks.
• Chatbots and coding assistants are now integrating data analysis and decision-making, as seen with Opus 4.5.
• AI coding assistants have notably increased productivity, especially in early-stage startups.
• The software moat is diminishing rapidly for startups, but established companies maintain their competitive edges.
• AI’s role in venture capital is expected to surpass human investors by the end of the year.
• More than half of Google’s search revenue is derived from shopping, which remains resilient to AI competition.
• The future of branding will involve cloning personalities for marketing purposes.
• Individualized and customized marketing is becoming the norm, driven by AI advancements.
• The current market sentiment is euphoric, but valuations are near historical highs, warranting caution.
• Amazon is poised to become the first major company with more robotic than human employees.

Guest intro

Qiao Wang is a Core Contributor at Alliance DAO, where he accelerates Web3 and crypto founders. Previously, he was a founding member of Messari, where he promoted transparency in the crypto ecosystem, and he is a Tower Research alumnus with deep expertise in crypto markets and digital asset investing.

The blurring line between chatbots and coding

• “The line between general chatbot and coding is blurring now when you code you don’t actually write code you write plain English” – Qiao Wang
• This shift indicates a significant trend in AI and software development.
• AI coding agents will not diminish the competitive advantages of tech giants like Facebook and Google.
• “The AI coding agents won’t kill them” – Qiao Wang
• Understanding the competitive landscape in tech is crucial to grasping this trend.
• Established tech companies have strong moats due to factors like developer ecosystems and proprietary data.
• “It’s developer ecosystem for Apple and maybe PC like Microsoft” – Qiao Wang
• The resilience of established companies in the face of AI advancements is notable.

Advances in AI coding tools

• Opus 4.5 represents a leap in AI coding capabilities, particularly for complex tasks.
• “The big difference between Opus 4.5 and before was that before you can sort of put together a demo very quickly” – Qiao Wang
• AI tools like Opus 4.5 are integrating data analysis and decision-making.
• “It pulled in info from CoinGecko, CoinMarketCap, all this different data” – Qiao Wang
• Opus 4.5 is considered superior to ChatGPT for both chatbot and coding assistance.
• “Opus 4.5 is so much better as a chatbot or as a coding assistant” – Qiao Wang
• The evolution of AI coding tools is transforming how software development is approached.
• AI’s ability to handle the last mile of product development remains a challenge.

Productivity gains from AI in startups

• AI coding assistants have drastically improved productivity for startups.
• “The latest number I got from the last cohort was like somewhere between three to four x product improvement” – Qiao Wang
• Early-stage startups benefit more from AI productivity improvements than larger companies.
• “This probably impacts early-stage startups even more so than later-stage companies” – Qiao Wang
• Startups are leveraging AI to minimize hiring, focusing on efficiency.
• “Why would we ever go hire more people?” – Qiao Wang
• By 2026, a one or two-person startup achieving unicorn status is feasible.
• “A one or two-person unicorn is possible in 2026” – Qiao Wang
• The diminishing software moat for startups is contrasted by the strong moats of established companies.

The changing landscape of competitive advantages

• The software moat is rapidly diminishing for early-stage startups.
• “For early-stage startups, there’s basically no moats” – Qiao Wang
• Established companies maintain strong moats through developer ecosystems, switching costs, and proprietary data.
• “It’s proprietary data for cloud AWS, Azure, Google GCP” – Qiao Wang
• The market mispricing of Adobe assumes new AI models will replace its software.
• “The market currently thinks that the latest video models and image models are going to kill Adobe” – Qiao Wang
• Adobe’s enterprise integration offers a competitive edge despite market assumptions.
• Understanding the mechanisms of market dominance is crucial for evaluating tech companies.

Strategic AI adoption in businesses

• Companies should identify where AI can create immediate impact rather than forcing adoption.
• “They have to just figure out where AI can help them immediately and make a huge impact” – Qiao Wang
• The prompt used in AI applications is crucial for determining automation effectiveness.
• “The prompt is where the secret sauce is” – Qiao Wang
• AI venture capitalists are expected to outperform human investors by year-end.
• “AI VCs is gonna do a better job than I do” – Qiao Wang
• Gemini is significantly underpriced compared to its value as a multi-functional assistant.
• “I think $2,000 a month for Gemini is underpriced” – Qiao Wang
• AI’s role in processing and analyzing data is transforming business decision-making.

The impact of AI on market dynamics

• More than half of Google’s search revenue comes from shopping, resilient to AI competition.
• “This castle is intact, no one’s gonna kill it anytime soon” – Qiao Wang
• Adobe might be undervalued and could experience a resurgence similar to Google.
• “Adobe might be the Google of this year because it’s so cheap” – Qiao Wang
• Adobe has lost its edge in the consumer market to Figma and Canva.
• “Adobe lost that war; Canva is for the lower-end segment of the market” – Qiao Wang
• Everyone will need to learn to code for automating work processes.
• “If they don’t, they’re gonna be left behind” – Qiao Wang
• Unique workflows can be automated by individuals using coding.

AI’s societal implications

• AI tools will create a divide, enhancing productivity for high-agency individuals.
• “These things just make the high agency smart people smarter” – Qiao Wang
• AI is a powerful tool for enhancing productivity based on individual utilization.
• “It’s really a matter of how much you wanna use it” – Qiao Wang
• Deep research is effective for gathering facts, while reasoning models enhance decision-making.
• “Deep research is really good for gathering facts and data” – Qiao Wang
• Investing with a multiyear time horizon is rare due to a lack of patience among investors.
• “No one has the patience to invest and hold it for more than five minutes these days” – Qiao Wang

The future of AI in venture capital

• AI will significantly change the due diligence process in venture capital.
• “AI will do a better job than me in a couple years” – Qiao Wang
• The human aspect of relationships in venture capital remains crucial.
• “Founders still want to have someone to talk to” – Qiao Wang
• The scarcity in the future will be in-person relationships.
• “The scarcity in five to ten years is the in-person relationship” – Qiao Wang
• Writing is essential for clear thinking and should not be automated.
• “Writing is thinking; AI is gonna produce some junk” – Qiao Wang
• The process of writing helps in organizing thoughts and improving clarity.

Personalized marketing and branding

• The future of branding will involve cloning individual personalities for marketing.
• “Brand and distribution will change over the future” – Qiao Wang
• Marketing and branding will become highly individualized and customized.
• “Marketing and branding is gonna be individualized to you first” – Qiao Wang
• AI will enable the production of highly targeted advertisements based on user data.
• “These are just normal fitness nutrition apps but they’ve it highly targeted” – Qiao Wang
• The current market sentiment is euphoric, but valuations are near historical highs.
• “Valuations are near historical highs; I’m not all in on risk assets” – Qiao Wang
• Individual stock picking can mitigate fears about market downturns.

Investment strategies and market insights

• Crypto tokens are not particularly attractive right now but could become appealing again.
• “There will be a time they become really attractive” – Qiao Wang
• Currently, the US dollar is the only attractive asset class.
• “Nothing is attractive at this point except for the US dollar” – Qiao Wang
• Tencent is a better investment than Alibaba, despite Alibaba’s AI advancements.
• “Tencent is a boring old Chinese company, but it’s a really good company” – Qiao Wang
• Amazon is likely to become the first major company with more robotics employees than humans.
• “Amazon will be the first big company with more robotics employees” – Qiao Wang
• The pharmaceutical industry faces significant competition from cheaper alternatives like Chinese peptides.