Software Engineering's Golden Era Ends Amid AI Advancements

According to Odaily, Electric Capital partner Avichal recently stated on social media that the 'golden era' for software engineers in San Francisco has concluded. From 2000 to 2020, software engineering was synonymous with high-paying careers. However, with over 100,000 layoffs in the tech industry in 2024, the globalization of remote work, and the rapid advancement of AI technology, the career trajectory for software engineers has fundamentally shifted. Avichal likened the rise of ChatGPT to a '2008 moment' for the software engineering sector, altering the market landscape. Despite these changes, Avichal emphasized that the situation is not entirely negative. The future will favor small, efficient teams, with AI-driven efficiency leading to the emergence of billion-dollar companies built by teams of just ten people. AI-first companies are expected to dominate the market, granting designers, product managers, and domain experts unprecedented influence, thereby fostering a new generation of entrepreneurs. He predicts that as the cost of software production continues to decrease, the enterprise software industry will undergo significant transformation. The era of 'easy money' for ordinary software engineers is over, and a new 'gold rush' in San Francisco has quietly begun.