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In a recent video, Y Combinator’s Garry Tan challenged the loudest takes on AI and work. He said both the doomers and the skeptics are wrong.
“All the best indicators we have from history, industry, and common sense suggest AI is going to transform the economy, but not destroy it.”
Tan points to the case of radiologists. When AI tools made image analysis faster and cheaper, demand for scans and for radiologists increased rather than replacing the professionals as some predicted. Cheaper access revealed hidden demand and created more complex, valuable work for humans.
Economists call this Jevons Paradox: when technology makes something more efficient, demand for it often grows. The same pattern has played out across history from container shipping to cloud computing, and it is happening again with AI.
“When the cost of doing work goes down, the demand for it goes up.”
At Singularity Capital, we see this dynamic every day. The most resilient founders we back are building tools that make human capability compound.
Each example proves the same point: when AI lowers the cost of doing something, it expands what is possible.
The future of work belongs to founders who see AI as leverage, not replacement. The future is not waiting for permission. It is already being built, and we're ready to back the founders paving the way.
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