I have this idea for a new framework/language. I'm sure if it either already exists or it's a dumb idea in practice but anyways.
You build a monolithic application. Everyone works on the same code base. Things are broken up into modules/classes/packages. From the programmers point of view it's just like working on a standard Java project or something similar.
The magic happens at the method and module boundaries. When the application is first started everything works normally. Methods call other methods using addresses. As the application runs some parts of it become hotter than other parts. At some trigger point an included process starts that spins up 1+ cloud instances. Only the hot code is deployed to the instances. If necessary the instance is load balanced on multiple nodes. You configure the triggers and whatnot as part of the applications config. The framework/language would either come with support for popular cloud services or allow you to create whatever system you need to create the instances.
My hypothetical language/framework would proxy all method calls and remap object instances to the new instance(s). If the extracted code cools down enough it is integrated back into the main monolith. At that point proxying is turned off and the methods use address again.
Using this approach you get the all the advantages of a monolith (interface compatibility checked by compiler, not needed EVERY service writing their own http code, etc). Of course you can't optimize latency as easily and merging is harder with monoliths. There's undoubtedly a hundred other reasons why this is a terrible idea.