WSJ today on the San Francisco real estate market Pretty good summary what’s going on, and it’s not overly complicated: “An uptick in demand coupled with the city’s notorious lack of housing supply means that fierce bidding wars are breaking out again for single-family homes and condominiums in desirable neighborhoods”

Excited to share that @deeptraceai has raised $5M to identify and fix every alert in production. This round is co-led by @felicis and @matrix, with participation from @ycombinator. As AI generates more of the world’s code, the real leverage shifts to systems that help engineers understand and run it in production. Deeptrace is that reliability layer. Today, teams like @opendoor, @mintlify, and @phantom use Deeptrace to automatically investigate every alert in production and proactively catch issues before they turn into incidents. If you’re looking to automate on-call and use agents to monitor prod, please reach out!

Amazon had four Sev-1 outages (their highest severity level) in a single week. Internal memos say AI-assisted code changes were a contributing factor. The timeline here is wild. In October 2025, Amazon laid off 14,000 corporate employees. In January 2026, another 16,000. That’s about 30,000 people in five months, roughly 10% of the corporate workforce. CEO Andy Jassy said the cuts were about culture, not AI. During those same months, Amazon set a target: 80% of developers using AI coding tools at least once a week. They tracked adoption closely and blocked rival tools like OpenAI’s Codex. Even so, 30% of developers still hadn’t touched Amazon’s in-house tool Kiro by January. In December 2025, Kiro caused a 13-hour AWS outage. The AI tool had production-level permissions and decided the best fix for a bug was to delete and recreate an entire live environment. A second incident involved Amazon Q Developer, another AI tool. Amazon blamed both on “user error, not AI.” But quietly added mandatory peer review for all production access afterward. Then March 5: Amazon’s retail site went down for about six hours. Over 22,000 users reported checkout failures, missing prices, and app crashes. Amazon called it a “software code deployment” error. Five days later, SVP Dave Treadwell made the normally optional weekly engineering meeting mandatory. His memo acknowledged “GenAI tools supplementing or accelerating production change instructions, leading to unsafe practices.” These problems trace back to Q3 2025. Amazon’s own assessment: their GenAI safeguards “are not yet fully established.” The new rule: junior and mid-level engineers now need senior sign-off on any AI-assisted production changes. Treadwell also announced “controlled friction” for the most critical parts of the retail experience. For context, Google’s 2025 DORA report found 90% of developers use AI for coding but only 24% trust it “a lot.” An Uplevel study of 800 developers found Copilot users introduced 41% more bugs with no improvement in output. Amazon is finding out what those numbers look like at the scale of a $500 Billion revenue company, with 30,000 fewer people on staff to catch the mistakes.

We just went live in production on a new feature. It was a busy day but nothing feels as good as shipping products.

At YC, we let our engineers let it rip. There is no limit to the number of tokens you get. If you're at a place that is stingy with tokens, and you have that need for a speed, come to YC and let it rip. ycombinator.com/software

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