To maximize speed, V0 operates with a "no handoffs" philosophy. Everyone, including designers and product managers, is expected to contribute code and submit their own pull requests. This "full-stack PM" model minimizes the coordination costs and wasted cycles of explaining changes.
The V0 team operates with minimal product management oversight, empowering product-minded engineers (often ex-founders) to make 95% of product decisions directly. This sacrifices potentially "perfect" choices for a dramatic increase in development velocity.
Vercel created a separate business unit for its AI tool, V0, because it targets a different audience (PMs, designers) and needed to operate with extreme speed, unburdened by the decision-making processes of the larger 700-person parent company.
The V0 business unit acts as the first and most demanding customer for Vercel's core platform. This "customer-vendor" relationship, rather than simple internal collaboration, provides high-quality, real-world feedback on infrastructure like billing and compute APIs.
In a crowded market where startups offer free or heavily subsidized AI tokens to gain users, Vercel intentionally prices its tokens at cost. They reject undercutting the market, betting instead that a superior, higher-quality product will win customers willing to pay for value.
Instead of tracking hours or rewarding a "996" work culture, the V0 team's performance compass is business impact, measured in dollars. New hires are explicitly expected to deliver millions in impact within their first year by fixing issues that cause customer churn or frustration.
The V0 team dogfoods their own AI prototyping tool to define and communicate new features internally. Instead of writing specification documents, PMs build and share working prototypes. This provides immediate clarity and sparks more effective, tangible feedback from the entire team.
Believing traditional weekly 1-on-1s are inefficient and repetitive, V0's leader eliminated them. He favors discussing shared topics in group settings (like a Slack huddle) and reserves direct 1-on-1 time for specific situations like onboarding, rather than a fixed weekly cadence.