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In this video, I revisit my earlier claim about AI turning software markets into a red ocean — and admit that I was partially wrong. The reality is actually much worse. I explain how AI has drastically lowered the barrier to building software, turning consumers into SaaS founders overnight. This explosion of competition is causing price deflation, collapsing demand, and skyrocketing customer acquisition costs — making profitability nearly impossible for most startups. 🚨 The result? A shrinking total addressable market, ads becoming money pits, and only a few AI monopolies truly winning. Chapters 0:00 Intro & Recap 0:24 The AI Startup Explosion 🚀 0:48 My Original Assumption Was Wrong 0:57 When Consumers Become Software Vendors 1:31 Anyone Can Launch a SaaS Now 1:39 Customers Start Building Their Own Tools 2:00 The Market Shrinks From Both Ends 📉 2:09 Competition Drives Acquisition Costs Up 2:20 Startup Costs: Then vs Now 2:54 The New Advertising Arms Race 💰 3:06 Click Costs & AI Click Fraud 3:19 Why Profit Is Becoming Impossible 3:36 Who Actually Wins in the AI Economy 3:41 The Ironic Future of Tech 🪿🌾 I made this video with https://drawonscreen.com/ #ai #redocean #saaspocalypse #drawonscreen