When the AI Tool Becomes the Firm
Published on: 10/12/2026
By Sidharth Menon
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what happens when an AI company stops selling the tool and starts doing the work itself?
We analysed 2,760 Y Combinator companies from 2022-26 and found early signs of exactly that shift: 𝗳𝗿𝗼𝗺 𝗰𝗼𝗽𝗶𝗹𝗼𝘁𝘀 → 𝗮𝗴𝗲𝗻𝘁𝘀 → 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄𝘀 → 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆, 𝘁𝗵𝗲 𝗳𝗶𝗿𝗺 𝗶𝘁𝘀𝗲𝗹𝗳.
The implications could be significant for what AI companies build, how they charge, and the markets they compete for.
We unpack it in our latest newsletter. Read the full piece & subscribe on Substack.
Companies featured: Fintool, Lio, Moritz, Denki (YC F25), Arden (YC P26), Cranston AI, Balance (YC W26) & Kinro (YC P26)