Bavor argues that demand for frontier AI is unbounded, but not every task requires the most advanced models; simpler tasks can be handled by fine-tuned open-weights models. He highlights Sierra's success, serving 40% of the Fortune 50, and its forward-deployed engineering model, inspired by Palantir, which embeds engineers with clients. Internally, Sierra uses an AI agent called Pinecone and a knowledge base called Sierra Brain to boost productivity. Bavor predicts AI will boost software engineering productivity by at least 20%, effectively doubling team sizes. He emphasizes the company's values of craftsmanship, intensity, and family, and advocates for in-person work to build culture. Sierra's board meetings use a six-week cadence with written memos, focusing on areas for improvement. Bavor also discusses the importance of young, AI-savvy employees and the company's AI-native engineering interviews.