Elon Musk's newly approved trillion-dollar pay package is less about the money and more about securing 25% voting control of Tesla. He views Tesla's future not in cars but in humanoid robots, and he sought this control to direct the development of this potentially world-changing technology.

The primary economic incentive driving AI development is not replacing software, but automating the vastly larger human labor market. This includes high-skill jobs like accountants, lawyers, and auditors, representing a multi-trillion dollar opportunity that dwarfs the SaaS industry and dictates where investment will flow.

Contrary to the belief that hardware is inherently capital-intensive, Monumental's founder argues their biggest expense is salaries for high-quality talent, much like a software startup. The cost of the robots is manageable and their payback time is good, challenging typical VC perceptions of the business model.

The economic incentive for VCs funding AI is replacing human labor, a $13 trillion market in the US alone. This dwarfs the $300 billion SaaS market, revealing the ultimate goal is automating knowledge work, not just building software.

In the current market, AI companies see explosive growth through two primary vectors: attaching to the massive AI compute spend or directly replacing human labor. Companies merely using AI to improve an existing product without hitting one of these drivers risk being discounted as they lack a clear, exponential growth narrative.

The narrative of AI destroying jobs misses a key point: AI allows companies to 'hire software for a dollar' for tasks that were never economical to assign to humans. This will unlock new services and expand the economy, creating demand in areas that previously didn't exist.

Backed by top tech leaders, the startup Mechanize operates on the thesis that fully automating all jobs is a technologically determined and desirable future. Their public goal is to accelerate this 'inevitable' outcome, revealing a deliberate and well-funded movement to replace human labor entirely, not just augment it.

As AI systems become infinitely scalable and more capable, humans will become the weakest link in any cognitive team. The high risk of human error and incorrect conclusions means that, from a purely economic perspective, human cognitive input will eventually detract from, rather than add to, value creation.

Previously, building 'just a feature' was a flawed strategy. Now, an AI feature that replaces a human role (e.g., a receptionist) can command a high enough price to be a viable company wedge, even before it becomes a full product.