Chatbase to Double Its Workforce as AI is Considered Too Limited

Yasser Elsaid revises his stance on ultra-small teams. The founder of Chatbase plans to hire as he believes AI models are still insufficiently autonomous to operate without human decisions and interactions. His position contrasts with job cuts observed elsewhere.

At Chatbase, 90% of engineering work is product-focused

Yasser Elsaid estimates that about 90% of the work of Chatbase engineers now pertains to the product, from research to client interactions, and transforming this feedback into actionable specifications for an AI agent. The remaining work requires engineers capable of understanding the code and preventing different AI agents from conflicting. According to him, current AI models are not autonomous enough to replace humans: decisions still need to be made about what to build, direction must be provided, and it must be ensured that the outcome meets client expectations. He describes code as binary, while the choice of what to build and the experience to offer differentiates a product. He adds that the models are very intelligent and capable, but not fully independent, noting that this could evolve in the future, but it is not the case today.

Announced hiring and current workforce of 40 people

The leader plans to double the size of the team in the next six months from a current workforce of 40 people. Chatbase is also hiring for client-facing roles, particularly in sales and customer success, to meet business expectations. The company, based in San Francisco, offers a platform that allows businesses to create AI agents for customer service and support.

The temptation of micro-teams is taking hold elsewhere in the industry

This trajectory contrasts with a broader trend of team reductions in the age of AI. Block cut nearly half of its workforce in February, with CEO Jack Dorsey linking this move to AI and smaller, flatter organizations. In May, Coinbase laid off 14% of its workforce, highlighting increased productivity and experimenting with native AI pods of reduced size, even down to a single-person team. Sam Altman suggested that a billion-dollar company could be run by a single individual. According to Sacra, Cursor saw its annual recurring revenue grow from $1 million to $100 million in less than twelve months while remaining under 50 employees.

Strategic shift: from a bet on code to product ambition

Yasser Elsaid admits he may have made a mistake by betting on very small teams. He specifies that in January, Chatbase had 17 full-time employees for most of its first three years, with most hires focused on engineering. He now believes that this choice was likely a poor option and warns founders about the danger of projecting into a future that does not yet exist. Advances in coding models, such as Claude Opus 5.5, had led him to consider operating with fewer staff, but he qualifies this: this logic only holds if the roadmap remains unchanged. He states that he has decided to raise product ambition, believing that while building becomes easier, the focus should be on more challenging and enduring projects. In this context, he maintains that AI is not fully independent and that he chooses to hire rather than reduce staff.