SaaS is dead?
Greg Isenberg argues that classic per-seat SaaS is dead because AI makes building software easy, and lays out a new model: give the tool away free, then charge for AI agents and human services.
The gist
-
Isenberg says the old SaaS model of engineers building a tool and charging per seat, like $9.99 or $29.99, no longer works.
-
He argues AI models are now so capable that building the software itself is no longer the hard part.
-
His proposed model gives the tool away free, with users paying in data and network effects that help build a moat.
-
Money comes from upselling AI agents or human services, like paid meal plans or a weekly weight coach on a free calorie tracker.
-
Isenberg expects SaaS for small businesses and individuals to trend toward free, while enterprises may still pay per seat for security.
Greg, This Week in Startups, Riley and Chris agree on 40 things
See what they all use, in their own words. Paid ads are left out.
See what they all swear by Or pick your own peopleAlso mentioned
2:05
Slack
· "I mean, there's so many examples of SaaS companies that made billions of dollars. Slack, for example, I..."
2:23
Claude
· "AI makes the ability to create the SaaS super easy. I think, you know, when we hit the Opus 5.5, GPT-6,..."
2:23
ChatGPT
· "I think, you know, when we hit the Opus 5.5, GPT-6, that like a level of model, these models are so good..."
◎
Related episodes
Episodes covering similar topics
More from Greg Isenberg
The $1M+ Solo Grok Bot Business (Full Course)
Nov 02, 2026
$100M ARR Founder: The Next Big AI Opportunity
Oct 28, 2026
The $1,000/hour 1-person AI business
Oct 26, 2026
The 9 Stages of AI Agent Adoption, Explained
Oct 21, 2026
Meta Muse Will Create 1,000 Millionaires
Oct 19, 2026