Fast as Frack: How AI is Redefining the Speed of Business in 2025

Table of Contents

1. Key Highlights:
2. Introduction
3. This Isn’t 2021 “Fast” (That Was Just Demand)
4. The Great Separation is Real (And The Data is Brutal)
5. The AI Explosion Shows What FAF Really Looks Like
6. The 18-Month “Let’s Learn” Window Has Closed
7. The New Rules Are Brutal (But Crystal Clear)
8. What FAF Actually Looks Like in the Wild
9. The Challenges Ahead: Adapt or Die
10. Conclusion
11. FAQ

Key Highlights:

• The rapid integration of AI technologies has fundamentally altered the pace of innovation in the tech industry, surpassing previous growth cycles.
• Unlike the demand-driven growth of 2021, the current market showcases true innovation speed, with companies achieving unprecedented revenue growth and reimagining product capabilities.
• The "Great Separation" is evident, with only a small percentage of software companies demonstrating substantial growth, emphasizing the critical need for businesses to adapt or risk obsolescence.

Introduction

The technology landscape is undergoing a seismic shift unlike anything witnessed in the past two decades. As businesses embrace artificial intelligence (AI), the acceleration of innovation has reached unparalleled heights. The phrase "Fast as Frack" encapsulates this new era, highlighting the drastic increase in operational speed and efficiency that AI tools bring to the table. This transformation is not merely a continuation of trends from previous years; it signifies a fundamental change in how businesses operate and compete.

In 2021, the tech sector experienced explosive growth driven by demand for existing software solutions. However, the landscape of 2025 paints a starkly different picture, one marked by genuine innovation and the emergence of new product categories. Companies that fail to integrate AI capabilities into their offerings risk falling behind as the market bifurcates into high-growth and stagnant segments. This article delves into the current state of the tech industry, examines the implications of AI on business practices, and outlines the critical strategies companies must adopt to thrive in this fast-paced environment.

This Isn’t 2021 “Fast” (That Was Just Demand)

Reflecting on the rapid advancements of 2021, many stakeholders believed that the tech industry was moving at light speed. Startups were achieving monumental milestones, such as scaling from $10 million to $100 million in annual recurring revenue (ARR) within 18 months. The market witnessed an IPO nearly every day, with valuations soaring to unprecedented heights. However, upon closer inspection, the velocity of 2021 was not driven by groundbreaking technological advancements but rather by a temporary surge in demand.

The reality was that the products being offered were largely the same as they had been prior to the pandemic. For example, Zoom continued to function as a video conferencing tool, Slack remained a chat application, and Shopify persisted as an e-commerce platform. The underlying technologies and development cycles saw little alteration. The remarkable growth witnessed during this period was attributed to:

• Customer adoption: The pandemic catalyzed a rapid shift towards digital transformation, prompting businesses to adopt software solutions at an unprecedented rate.
• Sales cycles: The urgency for SaaS solutions meant that sales cycles shrank dramatically, allowing companies to close deals faster than ever before.
• Revenue growth: With a surge in demand for existing solutions, companies experienced significant revenue increases.
• Fundraising: Investors were eager to capitalize on the technology boom, pouring money into companies that exhibited growth potential.
• IPO creation: The public markets were hungry for new offerings, resulting in a flurry of IPOs.

As the dust settled, it became clear that the innovations were not as revolutionary as anticipated. Fast forward to 2025, and the narrative has shifted dramatically. The current climate is characterized by genuine innovation, where companies are redefining their products and capabilities to harness the power of AI.

The Great Separation is Real (And The Data is Brutal)

Recent analyses, such as those from Coatue Research, have illuminated the stark realities facing the tech sector. The so-called "Great Separation" is not a distant reality; it has already manifested, leading to a notable disparity in growth rates among software companies. Shockingly, only 5% of public software companies are currently achieving growth rates exceeding 25%, a sharp decline from 26% in 2021. The median revenue growth has also plummeted from 17% to a mere 9% over the same period.

This data underscores the critical need for companies to innovate rapidly. The implications are clear: if a business has not integrated meaningful AI solutions into its operations by mid-2025, it is not merely facing a strategic shortfall but a significant talent deficiency. The tech landscape is demanding agility and foresight, and those who fail to adapt will find themselves relegated to the margins.

The AI Explosion Shows What FAF Really Looks Like

The acceleration of AI technologies has exemplified what true speed looks like in today’s market. The coding AI sector alone skyrocketed from $300 million in ARR to $1.6 billion in just a year, resulting in a staggering $1.3 billion in net-new revenue. This growth is not an isolated incident; numerous companies are leading the charge in redefining the pace of innovation:

• Cursor: Achieved $100 million ARR in just 12 months, doubling to $200 million ARR shortly thereafter—ten times faster than traditional SaaS models.
• Loveable: Reached $1 million in ARR within eight days, $10 million in two months, and $60 million in just six months, marking it as Europe’s fastest-growing AI startup.
• Anthropic: Jumped from zero to $1 billion ARR in 21 months, subsequently growing to $3 billion in just seven months.
• Sierra: Secured a valuation of $4.5 billion with a growth rate exceeding 300%.
• Harvey AI: Surpassed $50 million ARR and is on track to reach $100 million within eight months at a valuation of $3 billion.
• Mercor: Achieved $75 million ARR in two years with impressive month-over-month growth of 51%.
• Artisan: Generated $6 million in ARR from AI sales development representatives in under six months.

These companies are not merely capitalizing on existing demand; they are creating entirely new categories and capabilities that were non-existent just 18 months prior. The landscape of AI-driven B2B companies is characterized by extraordinary growth rates, often exceeding 500%, and the formation of billion-dollar markets in a matter of months.

The 18-Month “Let’s Learn” Window Has Closed

The launch of ChatGPT in November 2022 marked the beginning of a transformative phase for AI in business. By early 2024, companies across the spectrum gained access to advanced AI capabilities at minimal costs. This provided businesses with an 18-month window to experiment and integrate AI technology into their operations. Companies that maximized this period are not just competing; they are outpacing their rivals significantly.

The distinction between 2021 and 2025 lies in the nature of product offerings. In 2021, many companies could ride a wave of demand with minor enhancements to their existing products, such as adding a mobile application or improving user interface design. However, in 2025, the expectation is different. Companies must fundamentally rebuild their products around AI capabilities or risk becoming obsolete.

The New Rules Are Brutal (But Crystal Clear)

The current landscape delineated by Coatue’s decision matrix presents stark choices for businesses:

• Growing >25% + Profitable? -> File your S-1 immediately and prepare for public offerings.
• **Growing <25% + Profitable?** -> Aggressively pursue offensive strategies to boost growth.
• Growing >25% + Unprofitable? -> Focus on building a fortress balance sheet to prepare for future challenges.
• **Growing <25% + Unprofitable?** -> Consider a complete business reinvention.

The binary nature of today’s market leaves little room for complacency. Companies must either excel or confront fierce competition for survival.

What FAF Actually Looks Like in the Wild

The extreme concentration of capital in the tech industry is a testament to the current landscape. OpenAI’s remarkable $40 billion fundraising round in 2025 eclipses the total of the top fundraises from the previous seven years combined. Today, the top ten companies account for 52% of all venture funding, a significant increase from 16% in 2015.

Recent IPOs are also demonstrating exceptional performance, with median returns of 24% in 2025, starkly contrasting the -52% returns typical during the zero interest rate policy (ZIRP) era. Companies like Circle, CoreWeave, and Reddit have seen astonishing returns, further highlighting the flourishing environment for quality tech companies.

The Challenges Ahead: Adapt or Die

As the pace of business accelerates, the challenges facing companies intensify. The rapid evolution of AI technology demands constant adaptation and innovation. Businesses that cling to outdated strategies or fail to recognize the importance of AI integration will likely find themselves at a severe disadvantage.

Organizations must cultivate a culture of agility, encouraging teams to embrace change and leverage AI tools to enhance productivity and creativity. This may involve upskilling employees, investing in new technologies, or even rethinking entire business models.

Conclusion

The tech industry is in the midst of a historic transformation driven by the rapid integration of AI technologies. The shift from demand-driven growth to innovation speed marks a new chapter in the evolution of business practices. Companies that effectively harness the power of AI and adapt to the new pace of business will emerge as leaders in their respective fields. In contrast, those that fail to recognize and adapt to these changes will be left behind, struggling to compete in a landscape that is increasingly unforgiving.

FAQ

What is the "Great Separation"? The "Great Separation" refers to the widening gap between high-growth and low-growth companies in the tech sector, highlighting the stark differences in performance and innovation capabilities.

How does AI impact business speed? AI enhances operational efficiency, enabling companies to innovate faster and respond more rapidly to market demands, thus significantly increasing the speed of business.

What strategies should companies adopt to thrive in the AI era? Businesses should focus on integrating AI into their products and workflows, invest in employee training, and maintain agility to adapt to rapid changes in the market.

What are the consequences of failing to adopt AI technologies? Companies that do not embrace AI risk falling behind competitors, experiencing stagnant growth, and ultimately becoming irrelevant in an increasingly fast-paced market.