It's easier to build a startup, and the top people in tech don't have to prove their worth by going to work at big tech companies, he said.
"There's a lot of anxiety in the job market, especially from young software engineers," Tan said. "Maybe it's that engineer who couldn't get a job at Meta or Google who actually can build a standalone business making $10 million or $100 million a year with ten people -- that's such a powerful moment in software."
About 80% of the YC companies that presented this week were AI focused, with a handful of robotics and semiconductor startups. This group of companies has been able to prove earlier commercial use compared to previous generations, Tan said.