AI is revolutionizing firms by enabling skill replication and seamless knowledge sharing, unlike human employees. AIs can learn from vast datasets, transforming capital into labor and blurring traditional boundaries between firms. The merging of AIs accelerates cultural evolution, creating unified intelligence that surpasses human limitations. As AI firms grow, compute-intensive roles like CEO functions become costly due to high resource consumption. These firms optimize valuable abilities while being constrained by available compute power. Additionally, AI firms exhibit software-like characteristics that enhance their adaptability compared to human firms, which face challenges in replication. Balancing internal planning with external feedback remains crucial as AI systems advance.