Latent Space: The AI Engineer Podcast
00:28:21 · S1, Shawn Wang
[00:28:21] S1: Right? Which turned out to be [00:28:22] S0: A lot of crypto people want to be want to be AI. Yes. It is Super AI, and and I think they know that I don't like them. And so, like, they're like, this is embarrassing for my country. You're telling me this is the number one thing in my country? We need something better. And so, yeah, now I think AIE Singapore is is up there. It's at least competitive and maybe maybe better than Super AI, and I'm very proud of the team for doing that. I... And I didn't organize any of it. So I think that is the important thing for every country in [00:28:52] S1: the world to have it, and we can support that. Funny thing is that because I saw you went to Singapore for the first first AI event, and I... Because I knew Lei very well, and I asked him that, hey, AIE came to Singapore for the first time. When when you go to go to Shanghai or or China? And then he told me that he is working with you.
00:28:52 · S1, Shawn Wang
[00:28:52] S1: the world to have it, and we can support that. Funny thing is that because I saw you went to Singapore for the first first AI event, and I... Because I knew Lei very well, and I asked him that, hey, AIE came to Singapore for the first time. When when you go to go to Shanghai or or China? And then he told me that he is working with you. [00:29:12] S0: Yeah. So China is the tricky one, right, because I'm not a... I'm Singapore citizen, I'm a Chinese, obviously there's a lot of restrictions between The US and China. So that is the main tricky part that... Which is why I needed Lei and his team to really own the whole thing. Yeah. Because I, like, I cannot even set up a local entity in China. Right? There's a lot of controls. I don't wanna get in trouble because my main business is US. Mhmm. Right? So I cannot get into trouble with the White House. But if you want to share the brand and run it as your own thing and it's a franchise, whatever, okay. Like, there's lots of franchises. Yeah. As far as we're concerned, I'm McDonald's, and you're McDonald's China. Yeah. Yeah. Like, okay. Yeah. Happy we can bring it. There's KFC? KFC China. Yes. Alright. [00:29:55] S1: Great. Yeah. That... That's great, Sherry. And I guess next topic is something the contest you just shared, like, few few few weeks ago about the Clone My SaaS. Okay. I really like that show because... Yeah. Just tell us something about behind the Clone My and...
00:29:55 · S1, Shawn Wang
[00:29:55] S1: Great. Yeah. That... That's great, Sherry. And I guess next topic is something the contest you just shared, like, few few few weeks ago about the Clone My SaaS. Okay. I really like that show because... Yeah. Just tell us something about behind the Clone My and... [00:30:11] S0: Okay. I'm wondering how many of your listeners will care about this. Okay. You will only care if you own a business. Because most developers do not own businesses, they're like, not that interested. But if you aspire to own a business someday, you will be better care. [00:30:25] S1: And also, you know, because, you know, SaaS was a very hot topic, like several years ago [00:30:30] S0: just now. Oh, yeah. SaaS is dying. [00:30:32] S1: And dying and, you know, being discussed a lot this year. [00:30:36] S0: Yeah. Yeah. [00:30:36] S1: Yeah. Yeah. So I found out that this this show is very interesting and Okay.
00:30:41 · Shawn Wang
[00:30:41] S0: Let me introduce the the the overall context. Yeah. My budget for running a conference is somewhere between 3 to 10,000,000, depending on the size of the conference. Roughly about 300 k of that per conference is software. I'm paying... Like, that's, like, 10% of my budget. That's, like, 10% of my margin that I could be Yeah. Getting back. That is to just somebody else's software that is shitty, slow, ugly, not exactly what we want. And, you know, so I'm paying 300,000... Maybe I'm calling you paying 1,000,000 a year in just, like, SaaS. Like, you want this, you want that to do your work. Okay. Okay. Okay. Okay. Like, as the boss, like, my employee comes to me and wants to use this thing and they say, is it important for their work? Yeah. I'm gonna say yes. But like, when it all adds up, like, it's a lot of money. Supposed to be, yeah. And then like, and then I use it and they use it, they're like, yeah, it doesn't give me what we want, it's like, has, it's slow, like they request, like, as a customer of a SaaS, what happens is you are in a queue for support, right? You want this feature, and they're like, okay, months from now, you know, we'll do it. We'll put you on the q three roadmap. You're very important to us. But, like, it's... You know, we are an AI conference company, and this is 2026, and there's coding agents. Right? Like, we can do this. So the idea was I took a $40,000 SaaS that my employee was proposing to pay, and I said, will pay somebody $10,000 to clone this whole thing. It's open source, and it's exactly what we want. And from here, we can use whatever coding agent, Codex, Claude, coding, Devin, to just customize it, whatever. Right? And we did it. We, you know, announced the competition. We had 69 submissions. When you have a competition like that, you offer free money. Uh-huh. I... I've offered to cover everybody's coding agent subscription. Right? So you have a lot of bad submissions. And so I just, like, this is obviously stop. Like, I didn't I didn't give money for that. But we have 69 good ones, and most of them were, like, usable, about five, I would say, that we would pay for. Like, it was just, like, good. Like, it was done in one week. Yeah. Yeah. As an owner of a SaaS business, you have maybe, like, 50 customers, all of them paying you 40 k.
00:32:55 · Shawn Wang, S1
Imagine that all of them realize this, and then they just turn In one year, your business is gone. You went from earning $20,000,000 a year to nothing. Nothing. Yeah. Yeah. It's very scary, I think, for a business owner. And I think that's the tricky thing of owning a SaaS, right? Like, I own a physical business, so that's not going away anytime soon. Robots are cool, but they're not organizing a conference. But like, people who do software B to B, who own this, like, mid tier SaaS. Salesforce is fine. Like, nobody's worried about Salesforce. But, like, the mid tier SaaS where, like, you know, a lot of small mid... SMB? Do you [00:33:31] S1: guys call it SMB? SMB. [00:33:33] S0: SMBs, they're gonna really struggle, or they are gonna pivot to something that's better. And I think they they really better figure it out now because all of us business owners who are their customers, also can code. Yeah. And it doesn't take that much long time. [00:33:47] S1: We are actual competitors to to their own software right now. [00:33:51] S0: And by the way, the models are very good at clicking through every screen of your software and then replicating it in the... Independently. [00:33:59] S1: Oh, yeah.
00:33:59 · S1, Shawn Wang
[00:33:59] S1: Oh, yeah. [00:34:00] S0: Right? So the moment I have access to your software, I can clone it. So good luck. And so I think that is the the reality. I would say that if you're a SaaS owner, nobody knows that the right answer. Mhmm. I think that you basically end up having to pivot to being an agent builder. So you have to become, like... The US equivalent is, like, Harvey or Open Evidence or... Yeah. Yeah. You own a vertical and you're the top agent in that vertical. Or you own some specialized data and you're basically a data vendor. Anything in between, someone else is gonna just code their own thing. [00:34:34] S1: Yeah. Probably can I follow a question? Because you already answer my first question. Yes. You already give some advice to those those [00:34:42] S0: I'm more interested... Like, so I'm not I'm not so sympathetic to the the the SaaS owners. SaaS owners, they they're big big boys, they can figure it out. Actually, I'm more I'm more keen on advising the business owners. [00:34:51] S1: Oh, business owners?