watch21 min
The New Physics of Business — Garry Tan, Y Combinator
Garry Tan (CEO, Y Combinator) · AI Engineer
Tan backs a big thesis — AI agents change the input/output ratios of company building — with data from inside YC: the Winter 2025 batch where 25% of companies had 95% AI-generated codebases was the fastest-growing and most profitable in YC history. The most useful part for builders is the concrete organizational framework: skill files as employees, resolver tables as org charts, and the discipline of turning every one-off task into a reusable skill.
- The core discipline is 'never do one-off work' — after solving anything successfully, skillify it into a reusable file so the agent can repeat it.
- Put computation in the right place: latent space (LLM) for judgment and vague intent, deterministic code for execution and storage — most bugs come from mixing these up.
- Company knowledge bases need hygiene, not just memory: provenance on every fact, contradiction checks, and active pruning by human-agent teams.
- The leverage gap isn't the model — 2x and 100x people use the same Claude and same context window; the difference is how the work is wired.
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