Y Combinator CEO advocates massive investment in AI agents despite high costs

Y Combinator CEO Garry Tan publicly recommended entrepreneurs aggressively invest in token spending for AI agents, regardless of high costs. Tan argues that running agents at maximum power, processing hundreds of thousands of tokens per session, enables entrepreneurs to access AI capabilities that most people won't have access to for years. Tan estimates that maintaining agents in continuous operation at maximum intensity could cost between $50,000 and $100,000 annually, representing a significant but justifiable investment to gain competitive advantage. The proposed strategy involves converting successful procedures into reusable instructions in Markdown format, essentially creating digital employees that execute tasks consistently and reliably. This approach contrasts with alternative positions in the technology industry, where some executives warn that the era of massive token consumption is ending and efficiency will become the crucial differentiator.