Silicon Valley is buzzing about a significant shift in software development productivity, attributed to advances in coding models from companies like Anthropic, OpenAI, and others. Sarah Tavel from Benchmark noted in a board meeting that many companies suddenly have no feature backlog due to the increased output capabilities of engineers using these models. Developers are now leveraging tools like Claude Code to automate coding tasks, leading to impressive productivity gains and allowing even small teams to deliver substantial amounts of work in shorter timeframes. There are four types of companies in this new landscape. The first group includes those already seeing substantial benefits from agentic engineering, particularly firms developing these coding models. The second group consists of companies generating a lot of code but lacking the advanced capabilities of the first group. The third group is just starting to experiment with these technologies, while the fourth is largely unaware of the changes taking place. The article emphasizes that any company not adapting to these advancements risks falling behind as competitors harness the power of AI tools. The recent downturn in public software stocks, termed a "SaaSacre," is partly driven by market awareness of how easily software can be developed now. This creates pressure on public SaaS companies to demonstrate their ability to utilize agentic engineering effectively, showcasing rapid feature deployment and improved profitability. Companies aiming for an IPO also need to highlight their proficiency in using these tools to attract investor confidence, as the landscape continues to evolve quickly.