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Based on Grok identifying the company correctly, that would amount to ~3% of annual revenue and 30% of profits which seems insane to me for the cost of a single
by vlovich123 16d ago
Based on Grok identifying the company correctly, that would amount to ~3% of annual revenue and 30% of profits which seems insane to me for the cost of a single project.
Anyway, even if that were true, rewrites are becoming drastically cheaper, simpler, and more correct with AI. The Bun rewrite is the largest experiment and seems to be 5-10x cheaper and completed ~100x faster and these costs are likely to come down further. So your claimed $1B rewrite today costs $100M and carries less risk. In 5 years it'll probably cost at most $10M and be finished drastically more quickly. And the vast majority of software doesn't cost $1B to translate.
- bluGill 15d agoThe rewrite was done over several years which is going to complicate your analysis. It's been making money and over fist for the company for the last 10 years and the investment to R&D has gone down some since the rewrite but not a lot.
- vlovich123 15d agoSure I was assuming it wasn't a 1 year outlay. Still, even over several years that's a lot for just software - you're talking about $250M/year in development costs split over 4 years across 600 developers. I'm assuming the bulk of that cost must have been a HW rearchitecture though right and you don't have 600 people trying simultaneously to do a rewrite? Either that or someone was significantly overpaying consultants on the project. It seems suspect to me is all; the repayment time on $1B from a rewrite of an existing software stack isn't generally huge unless it also enabled adding new features that weren't possible before which enabled significant new revenue streams that justify that $1B outlay.