Claude can build pro software for ~$20k in tokens — and TAM shrinks to match
bigblueboo · x · 2026-10-31
Developer hammermt observes that Claude is now good enough to build legitimate professional software for roughly $20k in tokens — but the TAM for such products has correspondingly shrunk to about $20k. bigblueboo quipped while reposting: "Oops, the TAM just shrunk another 10x."
The quip captures a structural point about AI coding tools: when development cost drops to the same order of magnitude as a single customer's willingness to pay, traditional SaaS scale economics break down — the cheaper software gets, the smaller the sellable market becomes.
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