What are these fired programmers going to do? Disappear? They’ll build stuff, using the same plus-up AI tooling that enabled their old boss to fire them. So guess what, their old boss just traded employees for competitors. Congrats, I guess? Zuck declaring that he plans on dropping programmer head-count substantially, to me indicates that they’ll have a much smaller technological moat in the future, and they won’t be…
What moat did Meta have today? I'd say there is a moat, but it's not on the tech side. Tiktok flew right through the moat, and only a small part of that is about tech. A lot of development on AI is exciting and meta is a big part of that, but there isn't any real moat there either.
I get that it wasn’t just the vast army of talented engineers they kept on staff that formed a moat. But it certainly helped, otherwise they wouldn’t have paid so much to have them on staff.
Point taken though, Meta has a lot more going for it than a simple technological advantage.