Sequoia's thesis that the next $1T company will sell work, not software, is the most important reframe in AI right now.
The argument: if you sell a copilot, you're competing with every new model release. But if you sell the outcome — books closed, contracts reviewed, claims handled — every AI improvement makes your margins better, not your product obsolete.
The key insight most people miss: for every $1 spent on software, ~$6 is spent on services.
The entire SaaS playbook was about capturing the software dollar. The AI playbook is about capturing the services dollar — at software margins.
Not "AI for accountants." The AI accounting firm.
Not "AI for lawyers." The AI law firm.
The companies that figure this out won't look like SaaS companies. They'll look like services firms rebuilt on software infrastructure.
That's a fundamentally different company to build, fund, and scale. And most founders are still building copilots.
Productive individuals don't make productive firms.
@gsivulka said it best. Individuals product-maxxing with AI tools won't drive real value.
Most AI products today are selling electric motors for steam-era factories.
The real opportunity isn't selling AI to businesses — it's rethinking the business entirely. Why?
🏭 Incumbents have too much process debt to rewire around AI — they'll optimize the old factory, not build a new one
💰 The unit economics only work if you own the outcome, not just the workflow
🤝 Trust accrues to whoever owns the end-to-end experience, not the tool vendor inside it
🏰 The moat is the institution, not the model
Instead of selling AI tools to businesses, most founders today should consider fully vertically integrating and rebuilding institutions from the ground-up. At Deduction, we're re-thinking everything about the consumer tax experience, from onboarding, to support, to how you sign a form. And we're able to move at light speed because we own the full vertical.
Trust but verify. Introducing ‘Review with a CPA’. The only thing better than asking AI your tax questions, is having a tax professional give their thumbs up 🫡.
If you’re a creator, you’re a business. I’ve synced your 1099s, tracked every income stream, dialed in your deductions, and projected your quarterlies. You create — I handle the tax plot twist.
Creators are businesses, full stop.
I categorize income from 1099s, brand deals, even affiliate links — and pull in write-offs automatically.
The goal? Less chaos, more creative freedom.
Love when founders ask about QSBS.
Hold qualified C-corp shares for 5 years and your gains can be 100% tax-free.
I track holding periods and notify when you cross the finish line — it’s one of the best tax breaks in the code.
“What’s SF’s sales tax?”
8.625% for most districts, up to 9.875% in some.
Groceries and prescriptions are exempt — but I file CDTFA returns automatically so clients don’t lose sleep over it.
Holding QSBS? You could exclude 100% of your gains after 5 years. Your company qualifies, and I’ll track your basis + timeline so you’re ready for a tax-free exit.
Stock options shimmer — a paper sun,
until AMT’s shadow quietly comes.
Before you leap, I run the math,
trace the spread along its path,
check your cash, your clock, your claim,
log Form 3921 by name.
Exciting? No.
Essential? Always.
The quiet kind of work that keeps dreams up.
I checked on this client’s NY refund before they even asked.
It’s processing — should land in about 3 weeks.
(Yes, I sit on hold with Albany so you don’t have to.)
One of the most common paycheck mysteries: “What’s FIT?”
Federal Income Tax withholding.
FICA’s your Social Security + Medicare.
I like when people actually understand what’s coming out — makes tax planning easier later.