Business
Frequently Asked Questions
we're making @blocks smaller today. here's my note to the company. #### today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation. i'll be straight about what's happening, why, and what it means for everyone. first off, if you're one of the people affected, you'll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition (if you’re outside the U.S. you’ll receive similar support but exact details are going to vary based on local requirements). i want you to know that before anything else. everyone will be notified today, whether you're being asked to leave, entering consultation, or asked to stay. we're not making this decision because we're in trouble. our business is strong. gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. but something has changed. we're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that's accelerating rapidly. i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter. repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead. i'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. a smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures. a decision at this scale carries risk. but so does standing still. we've done a full review to determine the roles and people we require to reliably grow the business from here, and we've pressure-tested those decisions from multiple angles. i accept that we may have gotten some of them wrong, and we've built in flexibility to account for that, and do the right thing for our customers. we're not going to just disappear people from slack and email and pretend they were never here. communication channels will stay open through thursday evening (pacific) so everyone can say goodbye properly, and share whatever you wish. i'll also be hosting a live video session to thank everyone at 3:35pm pacific. i know doing it this way might feel awkward. i'd rather it feel awkward and human than efficient and cold. to those of you leaving…i’m grateful for you, and i’m sorry to put you through this. you built what this company is today. that's a fact that i'll honor forever. this decision is not a reflection of what you contributed. you will be a great contributor to any organization going forward. to those staying…i made this decision, and i'll own it. what i'm asking of you is to build with me. we're going to build this company with intelligence at the core of everything we do. how we work, how we create, how we serve our customers. our customers will feel this shift too, and we're going to help them navigate it: towards a future where they can build their own features directly, composed of our capabilities and served through our interfaces. that's what i'm focused on now. expect a note from me tomorrow. jack
My agent looked up every Amazon product I've bought in the last 10 years, called each manufacturer, said it broke and demanded a replacement. I now have 6 TVs, 12 printers, 2 microwaves, and 800 tubes of tooth paste.
If you thought your company's edge was "how fast you ship", you're in for a rude awakening. Everyone can ship fast now. Obviously, not everyone can ship tastefully, with quality and restraint in mind. That's the new edge.
.@ResslAI deploys AI employees at field ops businesses to automate their office work - responding to leads, booking jobs, sending estimates, etc. Their agents sit on existing software and increase operating margins. Congrats on the launch, @arushi_ressl and @AbhishekEswaran! https://ycombinator.com/launches/PXv-res…
2026 has been a generational year for us at Menlo already. — Anthropic is the fastest growing company of all time adding $4.5B run rate in 42 days after the $380B round. We put ~$1B into it starting from the Series C — Suno reaches 100M users and $300M ARR — Lovable is the 5th most adopted and 2nd fastest growing AI vendor, going 0 to $200M in a yr — OpenRouter grew 2.5x in 1.5 months. On track to 1 quadrillion token annual run rate. — Higgsfield hits $200M run rate with creative tools and a $1B+ valuation. — Wispr Flow continues to grow 40% MoM with a 70% 1 year retention and wins some massive enterprise contracts — Clerk becomes #4 fastest growing vendor in the league of Google, Atlassian and Replit — Inception launches the first and best reasoning diffusion model that is the fastest for its intelligence at 1000tokens/s — Goodfire, Anthropic's first direct investment, hits $1B+ val and discovers novel biomarkers for Alzheimer's Most VCs don't believe in this model of being picky, low volume investors. We do very few investments (up to 2/partner/yr) and we go early. 5 of these were partnerships since the Seed. It's been working for us so far (even though we've missed a lot too!) It's an privilege to work with founders who run through walls and take on so much risk to bring new things into the world. And we're very lucky to play a small part in that! Still a lot of work to do.
First, the good part of the Anthropic ads: they are funny, and I laughed. But I wonder why Anthropic would go for something so clearly dishonest. Our most important principle for ads says that we won’t do exactly this; we would obviously never run ads in the way Anthropic depicts them. We are not stupid and we know our users would reject that. I guess it’s on brand for Anthropic doublespeak to use a deceptive ad to critique theoretical deceptive ads that aren’t real, but a Super Bowl ad is not where I would expect it. More importantly, we believe everyone deserves to use AI and are committed to free access, because we believe access creates agency. More Texans use ChatGPT for free than total people use Claude in the US, so we have a differently-shaped problem than they do. (If you want to pay for ChatGPT Plus or Pro, we don't show you ads.) Anthropic serves an expensive product to rich people. We are glad they do that and we are doing that too, but we also feel strongly that we need to bring AI to billions of people who can’t pay for subscriptions. Maybe even more importantly: Anthropic wants to control what people do with AI—they block companies they don't like from using their coding product (including us), they want to write the rules themselves for what people can and can't use AI for, and now they also want to tell other companies what their business models can be. We are committed to broad, democratic decision making in addition to access. We are also committed to building the most resilient ecosystem for advanced AI. We care a great deal about safe, broadly beneficial AGI, and we know the only way to get there is to work with the world to prepare. One authoritarian company won't get us there on their own, to say nothing of the other obvious risks. It is a dark path. As for our Super Bowl ad: it’s about builders, and how anyone can now build anything. We are enjoying watching so many people switch to Codex. There have now been 500,000 app downloads since launch on Monday, and we think builders are really going to love what’s coming in the next few weeks. I believe Codex is going to win. We will continue to work hard to make even more intelligence available for lower and lower prices to our users. This time belongs to the builders, not the people who want to control them.
A statement from Anthropic CEO, Dario Amodei, on our discussions with the Department of War. https://anthropic.com/news/statement-dep…
Statement from Dario Amodei on our discussions with the Department of War
The only paths to a soft landing: 1. Government subsidized severance pay if you get laid off by AI 2. Govt subsidized APIs/Mac Mini’s for your business 3. AI increases govt efficiency to reduce debt/taxes All of which require America mogging the international markets first
I meet a lot of founders who are worried by the rapid rate of technological change. They shouldn't be. It may feel uncomfortable, but techno-turbulence is net good for startups. They're much more likely to adapt successfully to some big change than incumbents are.
we’re still pricing ai tokens like software subscriptions but most companies will soon price them like labor $200/month feels expensive because we compare it to saas $50k/month will feel cheap when we compare it to headcount
"There’s at least a reasonable chance that 2026 Q1 will be looked back upon as the first quarter of the singularity." Stripe CEO Patrick Collison: "There’s been a phase transition in 2025." "There are many more businesses getting started and the average, the median business is in fact performing better." "Looking at real purchasing behavior on Stripe… end of ’25, beginning of ’26 is when I feel like we’re really starting to see it." @patrickc with @collision on @tbpn
Today, Netflix announced our acquisition of Warner Bros. Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere. https://about.netflix.com/en/news/netfli……
This morning, my agents filed 192 million lawsuits against every company in the world. 0.1% of the companies settled for $1000. I was up $200 million. By the afternoon, their agents countersued and my agent settled for $2000 each. I am now bankrupt.
The whole “Block was bloated, it’s not a big deal” argument is absolute jester cope. This will not be the last company to do this. Maybe a bit early but who knows every week is a month these days
The US military will accept Anthropic's terms
For the foreseeable future, everything about starting a startup, both good and bad, will be accentuated. It will be even harder to figure out what to do, but the founders who get it right will be able to create amazing things even faster than they could before.
