To prevent engineers from gaming output-based pay, 10X assigns a "Technical Strategist" to each project. The engineer is paid for output, but the strategist is incentivized by client retention and account growth (NRR), creating a healthy tension that ensures high-quality work is delivered.
The primary obstacle to creating a fully autonomous AI software engineer isn't just model intelligence but "controlling entropy." This refers to the challenge of preventing the compounding accumulation of small, 1% errors that eventually derail a complex, multi-step task and get the agent irretrievably off track.
Traditional hourly billing for engineers is obsolete when AI creates 10x productivity. 10X compensates engineers based on output (story points), aligning incentives with speed and efficiency. This model allows top engineers to potentially earn over a million dollars in cash compensation annually.
Once AI coding agents reach a high performance level, objective benchmarks become less important than a developer's subjective experience. Like a warrior choosing a sword, the best tool is often the one that has the right "feel," writes code in a preferred style, and integrates seamlessly into a human workflow.
After a sales pitch to a major influencer failed, a 10X engineer built a working version of the proposed app in just four hours. Putting the functional product directly in the influencer's hands immediately vaulted 10X back to the top of their list, demonstrating that rapid AI-enabled prototyping is a powerful sales tool.
In an era where AI can assist with coding challenges, 10X's solution is to make their take-home assignments exceptionally difficult. This approach immediately filters out 50% of candidates who don't even respond, allowing for a much faster and more focused interview process for the elite few who pass.