95% of Software Deals Could Be Replaced by Prompts, Warns Tiny Co-founder Andrew Wilkinson

Silicon Valley – Andrew Wilkinson, co-founder of the holding company Tiny, has issued a stark warning to the software industry and investors, stating that a staggering 95% of software deals he evaluates could potentially be replaced by simple AI prompts. This assessment underscores a rapidly accelerating shift in the technological landscape, where generative AI is commoditizing traditional software development. Wilkinson, known for acquiring and operating profitable internet and consumer brands, shared his observation via a tweet, stating, > "Me evaluating every software deal right now now: 'Could this just be a prompt?' 95% of the time the answer is yes." This sentiment reflects his long-held view that AI is profoundly disruptive, capable of automating vast swathes of knowledge work. Earlier this year, Wilkinson articulated that "Software that once required millions in R&D can now be vibe-coded by teenagers over a weekend." He emphasized that the competitive dynamics of software are being entirely upended, leading to a future where "10,000x more code will be produced." This surge in AI-driven development is exerting immense pricing pressure on existing software solutions. For investors, Wilkinson advises a strategic pivot, urging them to "Focus on network effects and data moats" when considering new ventures. He has publicly stated that Tiny has "passed on dozens of deals" that would have been attractive just a few years ago, precisely because they lacked these critical, AI-resistant moats. Industry experts largely echo Wilkinson's concerns, with reports from PwC, McKinsey, and BCG highlighting AI as a top priority for business leaders in 2025. These analyses suggest that AI capabilities are becoming seamlessly integrated into core business applications, transforming processes and potentially reshaping demand for traditional software platforms as AI agents fill gaps and extend the life of existing systems.