Most founders worry about AI replacing jobs. Lucas Swisser, co-head of growth investing at CO2, hears it all the time. But he thinks that common fear misses the point entirely. Swisser argues that AI, like all prior technological waves, isn't shrinking the economy; it's making it bigger, creating new jobs and entirely new forms of wealth.

He backs this claim with a powerful lens from physics and philosophy. “My model of this is David Deutsche's beginning of infinity,” Swisser explains, referring to physicist David Deutsch's framework. “He argues that innovation is infinite. Meaning as you make innovations and you have other innovations, they start to innovate and integrate with each other which create new innovations.”

At CO2, Swisser has seen this play out firsthand. He notes, “We have more developers at COTU than we did a year ago but all of our developers are way way more productive than they were a year ago.” AI isn't cutting developer jobs; it's giving them "superpowers," making them faster and better, which in turn increases demand for their output. This isn't about moving pie slices around; it's about baking a much larger pie.

Key Takeaways

  • The fear of massive job loss from AI is a common misconception, often rooted in a zero-sum view of the economy.
  • AI, like past technologies, primarily drives increased productivity, which historically leads to the creation of new jobs and expanded economic opportunities.
  • CO2, Lucas Swisser's firm, has seen its developer team grow while simultaneously becoming significantly more productive, directly challenging the notion of AI-driven unemployment in high-skill roles.
  • Technology fundamentally expands the total economic pie, rather than simply redistributing existing resources, by unlocking new innovations and increasing overall wealth.
  • This perspective is rooted in David Deutsch's "Beginning of Infinity" framework, which posits innovation as an endless, compounding force for societal advancement.

The David Deutsch's "Beginning of Infinity" Framework on Innovation and Wealth

Lucas Swisser references David Deutsch's framework to explain why AI will drive net job creation and wealth. Here are its core components:

  • Innovation is Infinite: innovation is infinite. Meaning as you make innovations and you have other innovations, they start to innovate and integrate with each other which create new innovations.
  • Positive Sum World: We don't live in a zero- sum world. We live in a positive sum world... Technology fundamentally grows the pie. It makes the whole world more productive.
  • Wealth as Productivity: Wealth is not zero sum. Wealth is not a dollar bill. Wealth is a unit of productivity.

When This Works (and When It Doesn't)

Swisser sees this framework playing out as technology makes the world wealthier. He concedes there will be cost reductions in some areas, but crucially, “you're also going to have the creation of incredible jobs around for deployed engineers to be able to get the technology to work in production.” This works best when you view the economy as dynamic and ever-expanding, not a fixed resource pool. It applies when new efficiencies don't just reduce headcount, but free up capital and human talent to create entirely new products or services.

The framework is less comforting if you're stuck in a narrow, highly repetitive role that's directly automatable without obvious adjacencies for re-skilling. While the overall economic pie grows, individual transitions can be difficult. The onus is on individuals and businesses to see the new opportunities technology creates, rather than just the old ones it displaces. It requires a mindset shift from defense to offense.