<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:googleplay="http://www.google.com/schemas/play-podcasts/1.0"><channel><title><![CDATA[Donald Crigler]]></title><description><![CDATA[Donald Crigler]]></description><link>https://the746th.substack.com</link><image><url>https://substackcdn.com/image/fetch/$s_!2pwD!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fthe746th.substack.com%2Fimg%2Fsubstack.png</url><title>Donald Crigler</title><link>https://the746th.substack.com</link></image><generator>Substack</generator><lastBuildDate>Wed, 01 Jul 2026 10:50:20 GMT</lastBuildDate><atom:link href="https://the746th.substack.com/feed" rel="self" type="application/rss+xml"/><copyright><![CDATA[Donald Crigler]]></copyright><language><![CDATA[en]]></language><webMaster><![CDATA[the746th@substack.com]]></webMaster><itunes:owner><itunes:email><![CDATA[the746th@substack.com]]></itunes:email><itunes:name><![CDATA[Donald Crigler-The AI Economy]]></itunes:name></itunes:owner><itunes:author><![CDATA[Donald Crigler-The AI Economy]]></itunes:author><googleplay:owner><![CDATA[the746th@substack.com]]></googleplay:owner><googleplay:email><![CDATA[the746th@substack.com]]></googleplay:email><googleplay:author><![CDATA[Donald Crigler-The AI Economy]]></googleplay:author><itunes:block><![CDATA[Yes]]></itunes:block><item><title><![CDATA[Before You Scale]]></title><description><![CDATA[Why the Smartest Founders Prepare For Growth Long Before is Arrives]]></description><link>https://the746th.substack.com/p/before-you-scale</link><guid isPermaLink="false">https://the746th.substack.com/p/before-you-scale</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Mon, 29 Jun 2026 17:25:16 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!Hb5X!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack.com%2Fapi%2Fv1%2Fpolymarket-embed-image%2Fwill-openai-launch-a-consumer-hardware-product-by%3Ftimestamp%3D29713279" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p></p><p><span>Every day, thousands of entrepreneurs, developers, and indie builders begin creating the next generation of AI products. Some are building AI agents. Others are creating copilots, automation platforms, developer tools, enterprise software, or consumer applications designed to solve problems in entirely new ways.</span></p><p></p><p>The barrier to building has never been lower.</p><p></p><p>With powerful foundation models, low-code platforms, open-source frameworks, and AI-assisted coding, an individual can now accomplish what once required an entire engineering team. Ideas become prototypes in days instead of months, and products can reach users faster than ever before.</p><p></p><p>This is one of the most exciting periods in technology.</p><p></p><p>But it also creates a dangerous illusion.</p><p></p><p>Many founders are preparing to launch.</p><p></p><p>Very few are preparing to scale.</p><p></p><p><strong>Building Is the Beginning</strong></p><p></p><p>For most startups, the first milestone is simple:</p><p></p><p>Can we build it?</p><p></p><p>Can we get users?</p><p></p><p>Can we prove someone wants this?</p><p></p><p>Those are important questions.</p><p></p><p>Yet there's another set of questions that often remain unanswered until it's too late:</p><p></p><p>What happens if thousands of users arrive?</p><p></p><p>Can our infrastructure handle the demand?</p><p></p><p>How quickly will our token usage increase?</p><p></p><p>Will inference costs outpace revenue?</p><p></p><p>Can our architecture support multiple AI models?</p><p></p><p>What happens when dozens of AI agents begin working simultaneously?</p><p></p><p>Growth isn't simply "more users."</p><p></p><p>Growth changes everything.</p><div class="polymarket-embed" data-attrs="{&quot;eventSlug&quot;:&quot;will-openai-launch-a-consumer-hardware-product-by&quot;,&quot;marketSlug&quot;:&quot;&quot;,&quot;profileName&quot;:&quot;&quot;,&quot;belowTheFold&quot;:true,&quot;fullEmbedUrl&quot;:&quot;https://substack.com/embed/polymarket/will-openai-launch-a-consumer-hardware-product-by?graphMode=true&quot;,&quot;isGraphMode&quot;:true}" data-component-name="PolymarketToDOM"></div><p><strong>AI Doesn't Scale Like Traditional Software</strong></p><p></p><p>Traditional SaaS products certainly become more expensive as they grow.</p><p></p><p>AI products behave differently.</p><p></p><p>Every conversation, prompt, embedding, retrieval request, image generation, or autonomous workflow consumes computational resources.</p><p></p><p>As your customer base grows, so does:</p><p></p><p>* Token consumption</p><p>* Model inference</p><p>* Context window usage</p><p>* Vector database operations</p><p>* Retrieval pipelines</p><p>* GPU utilization</p><p>* API requests</p><p>* Storage requirements</p><p>* Engineering complexity</p><p></p><p>One successful product launch can dramatically change your operational profile overnight.</p><p></p><p>Success has a cost.</p><p></p><p>The question is whether you're prepared for it.</p><p></p><p><strong>The Hidden Costs Nobody Talks About</strong></p><p></p><p>When people discuss AI costs, they usually think about API pricing.</p><p></p><p>Those costs matter.</p><p></p><p>But they're only one piece of the puzzle.</p><p></p><p>The hidden costs often become much larger.</p><p></p><p>Engineering teams begin spending more time optimizing prompts.</p><p></p><p>Latency increases.</p><p></p><p>Infrastructure bottlenecks emerge.</p><p></p><p>Workflows that performed perfectly with one hundred users begin failing under ten thousand.</p><p></p><p>Developers spend weeks tuning systems instead of building new features.</p><p></p><p>Customer experience suffers.</p><p></p><p>The opportunity cost becomes enormous.</p><p></p><p>Sometimes the most expensive part of scaling isn't the AI bill.</p><p></p><p>It's the engineering hours spent reacting instead of innovating.</p><p></p><p><strong>The Difference Between Guessing and Planning</strong></p><p></p><p>Many founders forecast revenue.</p><p></p><p>Few forecast infrastructure.</p><p></p><p>Many project customer acquisition.</p><p></p><p>Few project AI consumption.</p><p></p><p>Many estimate funding needs.</p><p></p><p>Few estimate operational complexity.</p><p></p><p>Planning doesn't eliminate uncertainty.</p><p></p><p>But it dramatically reduces avoidable surprises.</p><p></p><p>The companies that thrive in the next decade won't necessarily be those with the most advanced models.</p><p></p><p>They'll be the organizations that understand how their systems behave before they reach production scale.</p><p></p><p><strong>Every Pilot Trains Before Flying</strong></p><p></p><p>Commercial pilots don't wait until passengers are onboard to discover how an aircraft responds during turbulence.</p><p></p><p>They train.</p><p></p><p>They simulate.</p><p></p><p>They practice emergencies repeatedly before they happen.</p><p></p><p>The aviation industry learned long ago that preparation saves lives.</p><p></p><p>AI companies should adopt a similar mindset.</p><p></p><p>Before deploying millions of AI requests...</p><p></p><p>Before onboarding enterprise customers...</p><p></p><p>Before launching globally...</p><p></p><p>Before investing heavily in infrastructure...</p><p></p><p>Run the simulation.</p><p></p><p>Understand the scenarios.</p><p></p><p>Challenge your assumptions.</p><p></p><p>Find weaknesses while they're inexpensive to fix.</p><p></p><p><strong>Scaling Is Becoming an Operational Discipline</strong></p><p></p><p>We're entering a new phase of the AI economy.</p><p></p><p>The first generation focused on model capability.</p><p></p><p>The second focused on application development.</p><p></p><p>The next generation will focus on operations.</p><p></p><p>Questions like these will become increasingly important:</p><p></p><p>* Which model delivers the best cost-performance ratio?</p><p>* How does routing requests affect spend?</p><p>* What happens when workloads increase 50x?</p><p>* Which workflows should be cached?</p><p>* Where should infrastructure be upgraded first?</p><p>* Which AI providers create the best long-term economics?</p><p></p><p>These are no longer engineering questions alone.</p><p></p><p>They're business questions.</p><p></p><p>Operational questions.</p><p></p><p>Strategic questions.</p><p></p><p><strong>Success Shouldn't Surprise You</strong></p><p></p><p>Ironically, many startups spend years preparing for failure.</p><p></p><p>They create contingency plans.</p><p></p><p>They conserve cash.</p><p></p><p>They reduce burn.</p><p></p><p>But they rarely prepare for success.</p><p></p><p>What if your product goes viral?</p><p></p><p>What if your enterprise customer signs tomorrow?</p><p></p><p>What if usage increases tenfold over the weekend?</p><p></p><p>Will your architecture support it?</p><p></p><p>Will your pricing model still work?</p><p></p><p>Will your AI costs remain sustainable?</p><p></p><p>Preparation isn't pessimism.</p><p></p><p>It's professionalism.</p><div class="latex-rendered" data-attrs="{&quot;persistentExpression&quot;:&quot;&quot;,&quot;id&quot;:&quot;DQVDRZFWZS&quot;}" data-component-name="LatexBlockToDOM"></div><p></p><p><strong>Before You Scale</strong></p><p></p><p>The AI economy is moving at extraordinary speed.</p><p></p><p>The tools will continue improving.</p><p></p><p>Models will become faster.</p><p></p><p>Costs will fluctuate.</p><p></p><p>New providers will emerge.</p><p></p><p>Competition will increase.</p><p></p><p>But one principle is unlikely to change:</p><p></p><p>Growth rewards preparation.</p><p></p><p>Founders who understand the economics of scale before they experience scale will make better technical decisions, better business decisions, and better investment decisions.</p><p></p><p>Building an AI product is exciting.</p><p></p><p>Building one that can thrive under real-world growth is where enduring companies are created.</p><p></p><p>So before you chase your next customer&#8230;</p><p></p><p>Before you deploy another agent&#8230;</p><p></p><p>Before you celebrate your next milestone&#8230;</p><p></p><p>Pause for a moment.</p><p></p><p>Ask yourself one simple question:</p><p></p><p>**Am I prepared for success?**</p><p></p><p>Because in the AI economy, the companies that endure won't simply be the fastest builders.</p><p></p><p>They'll be the ones who planned for tomorrow before tomorrow arrived.</p><p></p><p>**Before you scale, simulate.**</p><p></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA["The Hidden Cost of AI Success: Why Every AI Founder Needs to Forecast Before They Scale"]]></title><description><![CDATA[In the AI Economy, growth isn't the biggest challenge. Understanding the cost of growth is.]]></description><link>https://the746th.substack.com/p/the-hidden-cost-of-ai-success-why</link><guid isPermaLink="false">https://the746th.substack.com/p/the-hidden-cost-of-ai-success-why</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Thu, 18 Jun 2026 21:30:20 GMT</pubDate><enclosure url="https://substack-post-media.s3.amazonaws.com/public/images/87d71882-3903-4a54-962c-248dcb8b94a6_1080x1091.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<ul><li><p>A founder can go from an idea to a working AI product in a weekend. AI-powered applications, agents, copilots, and automation platforms are launching every day. The barriers to building have never been lower.</p></li></ul><p></p><p>But there is a question many founders fail to ask:</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p></p><p>**What happens if this actually succeeds?**</p><p></p><p>It's a strange problem to have, but success itself can become one of the biggest risks facing an AI startup.</p><p></p><p>## The New Reality of Building AI</p><p></p><p>For years, software companies primarily worried about development costs and customer acquisition. Once the product was built, adding users often came at relatively predictable costs.</p><p></p><p>AI changes that equation.</p><p></p><p>Every new user can generate:</p><p></p><p>* Token consumption</p><p>* API requests</p><p>* Compute usage</p><p>* Storage requirements</p><p>* Infrastructure demand</p><p>* Monitoring and operational overhead</p><p></p><p>As usage increases, costs can rise dramatically.</p><p></p><p>A product that costs $100 per month to operate at launch may cost thousands&#8212;or even tens of thousands&#8212;of dollars per month as adoption grows.</p><p></p><p>The challenge is that many founders don't discover these realities until after growth arrives.</p><p></p><p>## The Passion Trap</p><p></p><p>Many builders are driven by passion.</p><p></p><p>They love solving problems. They love creating products. They love shipping features.</p><p></p><p>Passion is one of the most powerful forces in entrepreneurship.</p><p></p><p>But passion can also create blind spots.</p><p></p><p>When you're focused on launching your AI product, it's easy to become obsessed with:</p><p></p><p>* Features</p><p>* User experience</p><p>* Growth</p><p>* Marketing</p><p>* Product development</p><p></p><p></p><div class="image-gallery-embed" data-attrs="{&quot;gallery&quot;:{&quot;images&quot;:[{&quot;type&quot;:&quot;image/png&quot;,&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a711ca39-90e6-4bdb-a837-1332ac359ee1_1254x1254.png&quot;},{&quot;type&quot;:&quot;image/png&quot;,&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/fc9ccce7-4966-43af-b054-5c34589943ca_1254x1254.png&quot;}],&quot;caption&quot;:&quot;Sponsored by LargentIQ.com - AI-Orchestrated Lending Operations and Aiscalesimulator.com - Predict AI Costs Before You Scale&quot;,&quot;alt&quot;:&quot;&quot;,&quot;staticGalleryImage&quot;:{&quot;type&quot;:&quot;image/png&quot;,&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/00206c4a-5723-4bd6-acbc-c9a3e5545a53_1456x720.png&quot;}},&quot;isEditorNode&quot;:true}"></div><p>What often gets overlooked is operational planning.</p><p></p><p>Questions like:</p><p></p><p>* What will my AI costs be at 10,000 users?</p><p>* What happens at 100,000 users?</p><p>* Can my infrastructure handle growth?</p><p>* What does profitability look like at scale?</p><p>* Which AI models make financial sense long-term?</p><p></p><p>These aren't exciting questions.</p><p></p><p>But they are often the questions that determine whether a company survives.</p><p></p><p>## Growth Without Planning Is Risk</p><p></p><p>In traditional startups, growth is almost always celebrated.</p><p></p><p>In AI businesses, growth without preparation can become dangerous.</p><p></p><p>Imagine waking up to find your product has gone viral.</p><p></p><p>Thousands of new users begin interacting with your platform.</p><p></p><p>Engagement skyrockets.</p><p></p><p>The headlines look great.</p><p></p><p>Then the invoices arrive.</p><p></p><p>Your infrastructure begins struggling.</p><p></p><p>Response times slow.</p><p></p><p>Operational costs accelerate faster than revenue.</p><p></p><p>The success you hoped for suddenly becomes a crisis.</p><p></p><p>This isn't a hypothetical scenario.</p><p></p><p>It's becoming increasingly common across the AI ecosystem.</p><p></p><p>## The Rise of AI Operational Intelligence</p><p></p><p>The next wave of innovation in AI won't just be about generating better outputs.</p><p></p><p>It will be about understanding the economics behind those outputs.</p><p></p><p>Founders need visibility into:</p><p></p><p>* Future AI consumption</p><p>* Infrastructure requirements</p><p>* Cost forecasting</p><p>* Capacity planning</p><p>* Scaling scenarios</p><p>* Operational risks</p><p></p><p>In other words, they need to understand not only how AI works&#8212;but how AI scales.</p><p></p><p>The companies that master this will have a significant competitive advantage.</p><p></p><p>## Why Forecasting Matters</p><p></p><p>Forecasting doesn't eliminate uncertainty.</p><p></p><p>It reduces surprises.</p><p></p><p>When founders can model future scenarios, they gain the ability to:</p><p></p><p>* Make better infrastructure decisions</p><p>* Select more efficient AI providers</p><p>* Budget more accurately</p><p>* Raise capital more effectively</p><p>* Improve margins</p><p>* Scale with confidence</p><p></p><p>The goal isn't predicting the future perfectly.</p><p></p><p>The goal is being prepared for it.</p><p></p><p>## The Future Belongs to Prepared Builders</p><p></p><p>The AI economy is still in its early innings.</p><p></p><p>Thousands of companies will emerge over the next decade.</p><p></p><p>Many will build remarkable products.</p><p></p><p>Some will achieve extraordinary growth.</p><p></p><p>But the most successful organizations won't just be the ones that build great AI.</p><p></p><p>They'll be the ones that understand what happens when great AI reaches scale.</p><p></p><p>Building is important.</p><p></p><p>Growth is exciting.</p><p></p><p>But preparation is what turns momentum into sustainability.</p><p></p><p>In the AI economy, predicting costs before you scale may become just as important as building the product itself.</p><p></p><p>The future belongs to builders who plan for success before success arrives.</p><p></p><p>**Suggested Substack title:**</p><p></p><p>**"The Hidden Cost of AI Success: Why Every AI Founder Needs to Forecast Before They Scale"**</p><p></p><p>**Suggested subtitle:**</p><p></p><p>*In the AI economy, growth isn't the biggest challenge. Understanding the cost of growth is.*</p><p></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[Think Like a CFO Before a Founder ]]></title><description><![CDATA[AI Economy- Why the Future of AI Won't Just Belong to Builders&#8212;It Will Belong to Operators]]></description><link>https://the746th.substack.com/p/think-like-a-cfo-before-a-founder-706</link><guid isPermaLink="false">https://the746th.substack.com/p/think-like-a-cfo-before-a-founder-706</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Sun, 14 Jun 2026 04:27:52 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!38E7!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p>The AI economy has made it easier than ever to build.</p><p>A solo founder can create applications that once required entire engineering teams. A vibe coder can launch a product over a weekend. An indie hacker can deploy agents, workflows, and automation systems that rival what established companies were building just a few years ago.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>This is one of the most exciting moments in technology history.</p><p>The barriers to entry have collapsed.</p><p>Ideas move from concept to reality faster than ever.</p><p>And thousands of founders are shipping products every day.</p><p>But amid all this excitement, I've noticed something interesting.</p><p>Most founders spend nearly all of their time thinking about what they're building.</p><p>Very few spend time thinking about what it will cost to operate if it succeeds.</p><p>That's where I believe many AI startups are making a mistake.</p><p></p><p><em><strong>The Builder Mindset</strong></em></p><p></p><p>When you're creating something new, it's natural to focus on product development.</p><p>You're thinking about:</p><p>* Features</p><p>* User experience</p><p>* Growth</p><p>* Distribution</p><p>* Customer acquisition</p><p>* Product-market fit</p><p>These things matter.</p><p>In fact, they matter a lot.</p><p>Without a great product, none of the rest matters.</p><p>But AI has introduced something different into the startup equation.</p><p>Every prompt costs money.</p><p>Every workflow costs money.</p><p>Every agent costs money.</p><p>Every model call costs money.</p><p>Every automation costs money.</p><p>The more successful your product becomes, the more these costs compound.</p><p>And yet most founders don't think about them until they become a problem.</p><p></p><p><em><strong>The Hidden Side of AI</strong></em></p><p>One of the reasons AI feels magical is because the infrastructure is mostly invisible.</p><p>You send a prompt.</p><p>You receive a response.</p><p>Everything works.</p><p>But beneath that simple interaction sits an economic engine.</p><p>Tokens are being consumed.</p><p>Models are being called.</p><p>Requests are being processed.</p><p>Credits are being depleted.</p><p>Costs are accumulating.</p><p>The challenge is that these costs often remain small in the beginning.</p><p>A few dollars here.</p><p>A few dollars there.</p><p>Nothing that seems worth worrying about.</p><p>Until growth arrives.</p><p>Then the economics change.</p><p></p><p> <em><strong>Success Can Become Expensive</strong></em></p><p></p><p>Every founder dreams about growth.</p><p>More users.</p><p>More customers.</p><p>More engagement.</p><p>More adoption.</p><p>But growth amplifies everything.</p><p>Including costs.</p><p>Imagine your AI product costs $100 per month to operate today.</p><p>That feels manageable.</p><p>Now imagine your user base increases by 10x.</p><p>Or 50x.</p><p>Or 100x.</p><p>Do you know what happens to your AI costs?</p><p>Many founders don't.</p><p>Not because they aren't intelligent.</p><p>Not because they don't care.</p><p>But because they've never taken the time to model the economics behind their product.</p><p>They've been focused on building.</p><p>Not operating.</p><p></p><p><em><strong>Think Like a CFO</strong></em></p><p></p><p>The best founders I've observed eventually develop a second mindset.</p><p>They remain builders.</p><p>But they also become operators.</p><p>And operators ask different questions.</p><p>Instead of:</p><p>"Can we build this?"</p><p>They ask:</p><p>"Can we afford to operate this at scale?"</p><p>Instead of:</p><p>"Which model is the most powerful?"</p><p>They ask:</p><p>"Which model delivers the best value?"</p><p>Instead of:</p><p>"How quickly can we ship?"</p><p>They ask:</p><p>"How efficiently can we scale?"</p><p>This is CFO thinking<em><strong>.</strong></em></p><p>Not because it's conservative.</p><p>But because it's sustainable.</p><p></p><p><em><strong>Questions Every AI Founder Should Be Asking</strong></em></p><p></p><p>Do you know your cost per user?</p><p>Do you know your cost per workflow?</p><p>Do you know your most expensive AI process?</p><p>Do you know which provider consumes the majority of your budget?</p><p>Do you know what happens to your costs if usage grows 10x?</p><p>Do you know where your optimization opportunities exist?</p><p>If the answer to most of these questions is no, you're not alone.</p><p>Most AI startups can't answer them.</p><p>Yet.</p><p></p><p><em><strong>Builders, Vibe Coders, and Indie Hackers</strong></em></p><p></p><p>This isn't just an enterprise problem.</p><p>It's a builder problem.</p><p>In fact, it may be an even bigger problem for solo founders.</p><p>The tools available today make it incredibly easy to connect APIs, deploy agents, chain workflows, and build sophisticated AI products.</p><p>But because development is moving so quickly, many creators are unknowingly building future operational challenges into their products.</p><p>The irony is that the easier AI becomes to build with, the more important it becomes to understand its economics.</p><p>The best builders won't just be great creators.</p><p>They'll become great operators too.</p><p></p><p><em><strong>The Next Competitive Advantage</strong></em></p><p></p><p>For years, companies competed on software.</p><p>Now they're competing on intelligence.</p><p>Soon they'll compete on efficiency.</p><p>Because eventually every AI company reaches the same point:</p><p>Growth arrives.</p><p>Usage increases.</p><p>Costs rise.</p><p>Margins tighten.</p><p>And operational visibility becomes essential.</p><p>At that moment, the companies that understand their economics will have a significant advantage over those that don't.</p><p></p><p><em><strong>Final Thought</strong></em></p><p></p><p>AI is transforming the way we build.</p><p>But building is only half of the equation.</p><p>The future won't belong solely to the founders who create the most products.</p><p>It will belong to the founders who understand how those products operate.</p><p>The ones who know their costs.</p><p>The ones who understand their margins.</p><p>The ones who prepare for scale before scale arrives.</p><p>The ones who think like CFOs before they need one.</p><p>Because in the AI economy, success isn't just about building something people want.</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!38E7!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!38E7!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 424w, https://substackcdn.com/image/fetch/$s_!38E7!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 848w, https://substackcdn.com/image/fetch/$s_!38E7!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!38E7!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!38E7!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg" width="1080" height="2068" 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srcset="https://substackcdn.com/image/fetch/$s_!38E7!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 424w, https://substackcdn.com/image/fetch/$s_!38E7!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 848w, https://substackcdn.com/image/fetch/$s_!38E7!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!38E7!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4d5de0cd-7dde-42d2-9840-139178d26015_1080x2068.jpeg 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>It's about building something that can survive its own success.</p><p></p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[Think Like a CFO Before a Founder ]]></title><description><![CDATA[AI Economy]]></description><link>https://the746th.substack.com/p/think-like-a-cfo-before-a-founder</link><guid isPermaLink="false">https://the746th.substack.com/p/think-like-a-cfo-before-a-founder</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Mon, 08 Jun 2026 04:29:53 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!hfh2!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F24e280f1-1a09-4c0f-9ba4-39cfffecb5b0_1024x608.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p>The AI economy has made it easier than ever to build.</p><p></p><p>A single founder can launch products that would have required entire engineering teams just a few years ago. AI coding assistants, agents, foundation models, and no-code platforms have dramatically lowered the barriers to creating software.</p><p></p><p>As a result, thousands of AI startups are being launched every month.</p><p></p><p>But while founders are becoming increasingly skilled at building products, many are overlooking a critical question:</p><p></p><p>What happens if the product succeeds?</p><p></p><p>This may sound counterintuitive, but one of the biggest risks facing AI startups today is not a lack of growth.</p><p></p><p>It's the cost of growth.</p><p></p><p>Most founders spend countless hours thinking about features, user acquisition, fundraising, and product-market fit. They obsess over onboarding flows, retention metrics, and customer feedback.</p><p></p><p>Far fewer spend time thinking about the economics behind the AI systems powering their products.</p><p></p><p>How much does each user interaction cost?</p><p></p><p>Which model is being used?</p><p></p><p>How many tokens are consumed per request?</p><p></p><p>What happens when usage increases 10x? 50x? 100x?</p><p></p><p>Many teams don't know the answers.</p><p></p><p>And that's understandable.</p><p></p><p>When you're launching an AI startup, your first priority is proving that customers actually want what you're building.</p><p></p><p>But eventually every successful AI company reaches a point where operational economics become impossible to ignore.</p><p></p><p>The same AI workflow that costs a few dollars today may cost thousands tomorrow.</p><p></p><p>The same model that feels affordable during development may become a significant expense when serving thousands of users.</p><p></p><p>The same agent that seems efficient now may become one of the largest operational costs in the business.</p><p></p><p>This is why I believe founders should begin thinking like CFOs long before they hire one.</p><p></p><p>Not because they need complex financial models.</p><p></p><p>Not because they should avoid experimentation.</p><p></p><p>But because understanding the economics of AI is becoming a competitive advantage.</p><p></p><p>The organizations that win in the AI economy may not simply be the ones building the most advanced products.</p><p></p><p>They may be the ones that understand their costs the best.</p><p></p><p>They'll know:</p><p></p><p>* Their cost per request</p><p></p><p>* Their cost per user</p><p></p><p>* Their most expensive workflows</p><p></p><p>* Their most efficient models</p><p></p><p>* Their biggest optimization opportunities</p><p></p><p>They'll understand where AI is creating value and where it is creating unnecessary expense.</p><p></p><p>This is a pattern we've seen before.</p><p></p><p>When cloud computing first emerged, organizations rushed to adopt it. The focus was speed, innovation, and deployment.</p><p></p><p>Then cloud costs began growing.</p><p></p><p>Suddenly companies needed visibility.</p><p></p><p>They needed governance.</p><p></p><p>They needed optimization.</p><p></p><p>Entire industries emerged around helping organizations manage cloud spending more effectively.</p><p></p><p>I believe AI is heading down a similar path.</p><p></p><p>Today, most conversations are about building.</p><p></p><p>Tomorrow, more conversations will be about operating.</p><p></p><p>As AI adoption expands across every industry, organizations will need to answer questions they aren't asking today:</p><p></p><p>Which provider is most cost-effective?</p><p></p><p>Which workflows should be optimized?</p><p></p><p>Which teams are consuming the most resources?</p><p></p><p>How can AI usage be governed without slowing innovation?</p><p></p><p>How do we scale AI without allowing costs to spiral out of control?</p><p></p><p>These are operational questions.</p><p></p><p>And operational questions eventually become financial questions.</p><p></p><p>That's why I encourage founders to think beyond product development.</p><p></p><p>Think beyond launch day.</p><p></p><p>Think beyond your first hundred users.</p><p></p><p>Imagine what happens when your product works.</p><p></p><p>Imagine what happens when adoption accelerates.</p><p></p><p>Imagine what happens when AI becomes deeply embedded into your business.</p><p></p><p>Can you still explain where every dollar is going?</p><p></p><p>Can you still optimize efficiently?</p><p></p><p>Can you still scale profitably?</p><p></p><p>The founders who can answer those questions today will likely be better positioned tomorrow.</p><p></p><p>AI is creating incredible opportunities.</p><p></p><p>But sustainable growth isn't just about building.</p><p></p><p>It's about understanding the economics behind what you're building before those economics begin making decisions for you.</p><p></p><p>The best time to think about AI costs isn't after they become a problem.</p><p></p><p>It's before they become one.</p><p></p><p></p><p></p><p></p>]]></content:encoded></item><item><title><![CDATA[Why AI Spend Will Become Every Startup’s Biggest Invisible Cost]]></title><description><![CDATA[AI used to feel cheap.]]></description><link>https://the746th.substack.com/p/why-ai-spend-will-become-every-startups</link><guid isPermaLink="false">https://the746th.substack.com/p/why-ai-spend-will-become-every-startups</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Fri, 22 May 2026 18:15:01 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!hfh2!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F24e280f1-1a09-4c0f-9ba4-39cfffecb5b0_1024x608.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p>AI used to feel cheap.</p><p>At first, it still does.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p>A developer signs up for an API key, tests a few prompts, builds a quick workflow, and ships an early prototype. The first month might cost only a few dollars. Maybe $20. Maybe $100. The usage feels manageable because the product is small and the requests are limited.</p><p>Then the product starts growing.</p><p>Users interact more frequently. Prompts become longer. Context windows expand. Agents begin chaining tasks together. Workflows become persistent. Teams add memory, retrieval systems, embeddings, tool calls, reasoning models, image generation, and multi-step orchestration.</p><p>Suddenly AI costs stop behaving like software costs.</p><p>They start behaving like infrastructure costs.</p><p>That is the shift many startups are quietly walking into right now.</p><p>A simple GPT-4 level request can cost significantly more than traditional API calls depending on prompt size and context usage. Claude Opus, GPT-4o, Gemini Advanced, and reasoning-heavy models introduce different pricing structures, context costs, and operational tradeoffs that compound quickly as usage scales.</p><p>A startup with just 5,000 active users can easily generate hundreds of thousands or millions of tokens daily. Add autonomous workflows or AI agents running continuously in the background and operational costs begin accelerating far faster than most founders originally modeled.</p><p>Consider a typical AI workflow:</p><p>* a user prompt</p><p>* retrieval from a vector database</p><p>* multiple reasoning passes</p><p>* model routing</p><p>* agent execution</p><p>* summarization</p><p>* memory updates</p><p>* API tool calls</p><p>One workflow may trigger 10&#8211;20 separate model interactions behind the scenes.</p><p>Now multiply that by:</p><p>* thousands of users</p><p>* daily sessions</p><p>* automated agents</p><p>* long context windows</p><p>* multimodal inputs</p><p>* enterprise workloads</p><p>The economics change dramatically.</p><p>Many startups are now discovering that AI spend compounds quietly.</p><p>Unlike traditional SaaS, AI costs scale with usage intensity, not just customer count.</p><p>More usage means:</p><p>* more tokens</p><p>* more compute</p><p>* larger context windows</p><p>* more inference</p><p>* higher latency optimization costs</p><p>* greater GPU demand</p><p>A product can appear profitable early while hidden infrastructure costs quietly accumulate underneath the surface.</p><p>The challenge becomes even larger across multiple providers.</p><p>Modern AI stacks often use:</p><p>* OpenAI</p><p>* Anthropic</p><p>* Gemini</p><p>* Mistral</p><p>* Cohere</p><p>* open-source models</p><p>* vector databases</p><p>* orchestration frameworks</p><p>* workflow automation tools</p><p>Each platform introduces:</p><p>* different billing systems</p><p>* separate dashboards</p><p>* unique token pricing</p><p>* varying rate limits</p><p>* fragmented visibility</p><p>Operational management becomes increasingly difficult as companies scale.</p><p>This is why AI spending is beginning to resemble cloud infrastructure economics more than traditional software subscriptions.</p><p>And history already showed what happens next.</p><p>Cloud computing eventually created:</p><p>* observability platforms</p><p>* cloud optimization systems</p><p>* infrastructure monitoring</p><p>* FinOps tooling</p><p>* orchestration layers</p><p>AI is now entering the same phase.</p><p>Because eventually every company building with AI starts asking the same questions:</p><p>* Which model is most cost efficient?</p><p>* Which workflows consume the most resources?</p><p>* How do we reduce unnecessary inference?</p><p>* How do we optimize agent behavior?</p><p>* How do we manage usage across providers?</p><p>* How do we prevent runaway AI spend?</p><p>The companies that survive long term may not simply have the smartest AI.</p><p>They may have the most operationally efficient AI systems.</p><p>This becomes especially important with AI agents.</p><p>Autonomous agents can:</p><p>* run continuously</p><p>* call APIs repeatedly</p><p>* generate recursive workflows</p><p>* consume massive token volumes</p><p>* execute multi-step reasoning loops</p><p>* operate across multiple environments simultaneously</p><p>Without controls, visibility, and optimization, operational costs can escalate extremely fast.</p><p>An AI coding agent operating continuously across a production team may generate millions of tokens weekly. Multiply that across engineering, support, research, marketing, and internal copilots, and startups suddenly find themselves managing infrastructure economics they never anticipated.</p><p>AI is quietly transforming software from fixed-cost systems into dynamic economic systems.</p><p>Every prompt becomes a resource decision.</p><p>Every workflow becomes a cost structure.</p><p>Every agent becomes an operational actor consuming measurable infrastructure.</p><p>And most startups are still underestimating how quickly those costs scale.</p><p>The invisible nature of AI spend is what makes it dangerous.</p><p>It compounds quietly beneath growth.</p><p>Until eventually the company realizes:</p><p>the AI product was scaling faster than the operational model supporting it.</p><p>The next generation of successful AI startups may not win purely because of intelligence.</p><p>They may win because they understand how to operate intelligence efficiently at scale.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://the746th.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div>]]></content:encoded></item><item><title><![CDATA[The AI Stack Is Becoming Financially Aware]]></title><description><![CDATA[As more companies build with AI, operational questions are starting to matter just as much as product questions.]]></description><link>https://the746th.substack.com/p/the-ai-stack-is-becoming-financially</link><guid isPermaLink="false">https://the746th.substack.com/p/the-ai-stack-is-becoming-financially</guid><dc:creator><![CDATA[Donald Crigler-The AI Economy]]></dc:creator><pubDate>Tue, 19 May 2026 17:22:37 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!hfh2!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F24e280f1-1a09-4c0f-9ba4-39cfffecb5b0_1024x608.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<p>As more companies build with AI, operational questions are starting to matter just as much as product questions.</p><p>Not: &#8220;Can this model generate text?&#8221;</p><p>But:</p><p>Which model should handle this task?</p><p>How much does this workflow cost?</p><p>Which provider is most efficient?</p><p>What happens when usage scales 100x?</p><p>How do teams track AI consumption across tools?</p><p>Who manages agent spending?</p>]]></content:encoded></item></channel></rss>