The AI Economy Is Stabilizing

Jared Friedman reflects on one of his biggest surprises of 2025: how much the AI economy has stabilized. After a period of rapid, uncertain change in 2024, the ecosystem now feels more mature, with clear layers—models, infrastructure, and applications—and a more established playbook for building AI-native companies. While models have continued to improve, progress has been incremental rather than disruptive, helping the overall market settle.