Latent Space: The AI Engineer Podcast
Latent Space: The AI Engineer Podcast

AI for the Fortune 2000: How Tenex Builds an AI-Native SDLC — Alex Lieberman & CJ Hess

October 21, 2026

AI Summary

5 min read

AI for the Fortune 2000: How Tenex Builds an AI-Native SDLC

Tenex is an applied AI partner for Fortune 2000 companies, helping them move from using AI apps to becoming AI-native. The company's core belief is that AI provides raw intelligence, but the hardest problem is the "final mile" of diffusing it through the economy. Co-founder Alex Lieberman and Director of Engineering CJ Hess describe a business that has grown to 75 people in 18 months, with 90% of employees being engineers or AI strategists, and roughly half their customers now in the Fortune 2000.

The Output-Based Compensation Model

Tenex pays engineers based on story points rather than hours, a model CJ was drawn to after running his own engineering consulting firm. "I just felt my output getting better and faster and ultimately getting paid less," he says, because he was charging hourly. The thesis is that AI is a leveraged bet on a human's intellect and work ethic, creating wider variance in earning capacity. The highest-paid engineer at Tenex earns roughly four times what the lowest-paid engineer earns.

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Guests on this episode

Show Notes

Alex Lieberman and CJ Hess join swyx at AI Engineer New York to discuss Tenex’s approach to AI-native engineering, paying for outcomes, MetaHarness, enterprise AI adoption and rebuilding SaaS.

Show notes:

Tenex: https://www.tenex.co/

Building an AI-native SDLC: https://www.tenex.co/blog/building-an-ai-native-sdlc

Earlier Tenex episode: https://www.latent.space/p/10x-ai-engineers-with-1m-salaries

Kill My SaaS: https://www.youtube.com/watch?v=zlD-CkLVKtU

Full video: https://www.youtube.com/watch?v=Vki6cklFqxo

0:00 Cold open

0:26 Introductions

0:51 What Tenex does

1:32 Why CJ joined Tenex

3:17 Paying engineers for outcomes

7:20 Inside MetaHarness

10:25 Models and long-running tasks

15:11 Token spending and ROI

19:29 The enterprise AI adoption gap

23:22 Why agent deployment is hard

24:42 Vertical AI and enterprise software

30:32 Kill My SaaS

35:23 AI and jobs

38:18 New York’s AI ecosystem

42:28 Hiring at Tenex



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Latent Space: The AI Engineer Podcast