Yes! All startups are created to solve a problem, regardless of the tools used. Apps are simply tools to solve human problems. Because humans will always have challenges to address, software will remain a vital tool. While AI makes writing software much easier. It's likely to lead to an explosion of new apps. Only those that fill a genuine need will survive. Your job is to identify these new problems and determine which apps to build.

Simple apps are a thing of the past. If an LLM can generate an app in a few sittings, it isn't a saleable product. However, people will still pay for a fully engineered application that solves a complex problem that AI cannot easily replicate.

Regarding copies, there is always room for more than one solution to the same need. Your challenge is to figure out how to stand out. A fundamental business hurdle, that has existed since the beginning.

Here's an idea that always bear's fruit. We humans love to do things as easy as possible. Write something that saves energy, time and is simple then people will pay for it.

You're gonna get a lot of positive responses here, but frankly only do it if you think you can make meaningful money within a month or two.

Everything is going off the rails this year. You only have to use Claude Code for 10 minutes to realize every job involving a computer is going to get flipped upside down within a year.

In my experience (enterprise software), customers buy our products not because we have a moat or some hard-to-achieve technical advantage but because they can speak to us in their words, they know we care, and we try solve their problems quickly.

Just yesterday I was speaking with the COO of a $200M/yr revenue company in the supply chain space. He'd learned Claude Code and built a couple apps to solve internal problems but reached out to talk to us. I asked him "you've been able to build some really impressive tools, clearly you can solve your own problems, why are you talking to me?" And he said "I have a business to run. I shouldn't be coding. I need somebody who understands my business & can solve my problems without taking a lot of my time."

Is there a cheaper way for him to solve his problems? Absolutely. But he wants to put the key in the ignition and know the car will turn on every time without thinking about it. There is an endless list of problems to solve; I don't think software businesses are going anywhere anytime soon.

Maybe. great businesses don't need moats. They just need sonething people buy from them. Maybe venture capital needs moats - but you can get rich without that. (If rich is even the goal - a nice life is a better goal)

beware of any business where there is no competition - there is generally good reason nobody else is making money there.

You could probably become rich wholesaling gravel in your city. There are plenty of opportunities all around. Execution is key.

Do it if you want to - if you feel some burning desire to create that thing and you just can't get it out of your head.

You mean the big companies who still haven't moved away from abominations like SAP and Oracle? The ones where you require twenty approvals to get a small pilot done? Instead of moving to saner and cheaper alternatives, they would just say, "hey, why don't we just start making our own software?" Every effort like this—if it had any takers—will fail spectacularly.

I get it people are skeptical about the future. But I can't imagine any scenario where people would like taking responsibility of building and mantaining their own software for everything vs. paying marginal amount of money (relatively speaking) to let someone else take the headache.

It is. Big companies (or really anyone) usually don't have the time to copy an idea unless it becomes too big already. And if your idea becomes too big, it was worth pursuing it.

in the valley at least its difficult to pursue that unless you’re in a “hot” field. A few years ago, it was cloud, then big data, then crypto and now AI. When startups in those fields can raise hundreds of millions, they can lure away a lot of talent (both tech and non tech).

Depends on your goal - do you have an idea you care about and want to solve? Probably a good idea. If you "want to be your own boss" or looking for something just to be acquired, hard to say, depends on who you know, etc.

Thought this would be a thread about the crazy offers being handed out to join AI teams at Amazon, Meta, Google, OpenAI, Anthropic, Apple, or any of the massively capitalized 'neolabs'.

The fact that people look to start a business based on searching foe a moat shows they don't believe in free markets. As well as shows what's wrong with Silicon Valley.

Build something novel, what has changed?

Isn't it the opposite? E.g. there is very little moat left and small companies or individuals can copy any product big or small in no time?

There's still plenty of moats frankly, same moats as before. What isn't the moat is the software development time.

In our case, we're building a tool that has a moat from: integrations, multiple parties connecting, and others

It's very sticky once we get in, and has nothing to do with the software so much as legal, company policy and inter party communication

So long as it's not about AI. The world hasn't run out of problems that could be solved or improved by software.

You can get the same output as $500k/year of software engineers for $2.4k/year now. Never been better if you ask me!

This is the problem with big concentration of wealth and power. The big tech mega corps can copy your idea easily because they don’t have any budget, they can undercut you or sell at a loss, and they can distribute it to all their current customers with anti competitive bundling.

It has happened over and over many times and American antitrust law is useless. The largest corporations must be broken up, taxed heavily, and regulated in new ways. Otherwise there is no fair competition or level playing field for startups.

You're asking what's a defensible value-add, but without really framing current business conditions or issues.

Time - opportunity - matters a lot, perhaps more than anything. And to face that, one needs to ask better questions (even if you're just polling).

The serious answer:

The value cannot be just the software. E.g. some workflow tool (Salesforce). These tools will continue to exist for awhile but any customer capable of moving off of it to a startup version, can probably make their own startup version, tailored to them.

Now, if you offer something besides the software — logistics, networks, financial instruments, regulatory compliance, physical goods, compute, etc — that has value besides the software.

But the five billionth workflow automation tool has fast diminishing value in 2026.

I would strongly recommend staying away from software startups unless:

- The CEO of some major corporation or a big VC is a close friend or friend of your family.

- You are rich and have a lot of friends who will buy your product.

- You already finished the MVP; which you started building 12 years ago... Might as well try to complete.

- You're a criminal.

The market is insanely saturated and people already have more stuff than they need. Capitalism has been over since 2008. Now it's just feudalism. Product is irrelevant; it's all a social game of selection. You have to be selected. You just need to know someone and have a product with a semi-reasonable narrative that your CEO buddy can use as a justification to give you company money. That's it.

The real question to ask is;

Is it still worth pursuing a software startup ... using the same strategies/approach/mindset/tools/means/methods of yesteryears?

Answer is Yes for the first part and No for the second part.

Problems which need software solutions and/or have a software component (at this point, practically everything) still exist in plenty. AI/ML has only changed the playing field drastically. It cannot understand the intent behind the problem which is a uniquely Human Dilemma. This is where the opportunities lie; understanding different Problem/Business Domains by studying and closely interacting with possible clients and coming up with tailored solutions whether domain-specific or client-specific.

The emphasis now is on better problem understanding/specification/verification (DSLs/notations/diagrams etc.) and faster iteration to a MVP. AI/ML is a great help here but the cycle is initiated by a Human who is always in the loop and steers it on the right trajectory in the state space of possible solutions.