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Diffco

Diffco

Artificial Intelligence

San Jose, California 2,089 followers

Your trusted AI software development partner

About us

Diffco is a San Francisco-based AI-first software engineering partner for growth-oriented teams. We embed senior engineers and product strategists who turn AI vision into shipped, revenue-driving products. Our team has spent the last 18 years building: SaaS platforms, web&mobile apps, and now AI-native systems for best startups to top U.S. enterprises in healthcare, finance, and other regulated industries. Products we developed are used by renowned companies such as American Express, Starbucks, Whole Foods, Mars, and many successful startups like Maze, Happier, and Legion Farm, among many others.

Website
https://diffco.us
Industry
Artificial Intelligence
Company size
51-200 employees
Headquarters
San Jose, California
Type
Privately Held
Founded
2008
Specialties
AI, Computer vision, Image Recognition, Secure development , Team augmentation, AI agents, and Software development

Locations

Employees at Diffco

Updates

  • Its not models, its always harness. Our CEO Vadim Peskov on the Goodfirms podcast: why AI coding tools speed up typing but not teams, and what delivers 5-30X on real systems.

    Coding was never the bottleneck in software. Deciding what and how to build is. I joined the GoodFirms "Conversations That Matter" podcast to talk about why AI coding tools speed up developers but rarely speed up teams. My advice to engineering leaders: it's not the model; it's always the harness. Models change every few months. Specs, memory, security agents, and a weekly testing habit are what you control. What I see across our client work: 1. Faster code completion moves the pile-up to the next step: review, integration, and, above all, the decision about what to build. 2. AI is a wonderful "yes person." A good senior engineer pushes back on weak ideas. So, our systems say no by default, and an idea has to survive questioning before it becomes code. 3. On legacy systems, context beats model choice. Agents need to know why the system looks the way it does, not just what the code says. 4. Security by design used to double a project's cost. With separate security agents and targeted human review, compliance from day one is now the practical option. The ranges we see: 20–30X on new features, 5–10X on complex systems, 2–3X under heavy regulation. One example: a 250-developer enterprise with a 15–20-year-old system went from about 50% gains with AI tools to 7–10X. Same team. Different process. Full episode and write-up in the first comment. Where is your team's real bottleneck right now?

  • Our CEO Vadim Peskov on the NoRobots Podcast, on what clients are actually buying when AI writes the code.

    A founder builds a prototype in Lovable in three days, then asks why the quote is $200K. Vadim Peskov's reply: "Try to do it for $10K. Come back when you fail." He's run Diffco in Silicon Valley for 18 years. Web in 2008, mobile after that, computer vision and ML in 2016, back when he still had to explain to clients what AI was. Then the last six months happened: every project he shipped was 100% AI-written code. So I asked the obvious question. If AI writes the code, what are clients paying for? His answer: nobody ever paid him per line of code. They paid for a partner who tells them when the idea is bad, and knows how to build the right thing when it isn't. The numbers back it up. A project that cost $1M three years ago now comes in under $300K. Diffco has fewer developers than before and is growing faster than ever. The part I keep coming back to: he doesn't hire developers anymore. He hires engineers who design systems that build themselves. A senior with 15 years of experience who isn't doing that today is, in his words, a junior again. Vadim hadn't written code himself in years. In the last eight months, he shipped more than in his whole career. Full episode on YouTube: https://lnkd.in/gYCqnB3f

  • Diffco reposted this

    So your team is 100x now with AI. But 100x at what?" That's roughly where my conversation with Pale Blue Nexus started, and it's the question nobody asks. We've genuinely cut client project costs by 4x. On smaller new builds we're at essentially 100% AI-written code. But the multiplier framing hides the part that actually matters: the limiting factor was never typing speed. It was architecture and product decisions — and those are still made by people. We also talked about why better models won't improve your output much (the harness matters more), why open source wins on private data, and the pricing crisis heading for the mid-market. 42 minutes, no hype: https://lnkd.in/gvXw8VPy

    Why This Veteran Engineer Says Better Models Don't Mean Better Software

    https://www.youtube.com/

  • Diffco reposted this

    Why you still need developers in 2026 — and why "vibe coding everything" is a trap A vibe-coded product usually lasts 3–9 months before the foundations crack. Not because the tools are bad. They're remarkable — a clickable prototype in an afternoon, an internal dashboard before lunch. We use them ourselves. The trap is treating "great for prototypes" as "great for products." What breaks is boringly predictable. Schemas that are roughly right and exactly wrong. Auth that looks plausible and isn't. No tests, no observability, and nobody holding the system in their head. Feature velocity halves, then halves again, and someone eventually rebuilds under time pressure with paying customers watching. Here's the part that surprises founders: one developer brought in during the first 60 days usually prevents the crack entirely. That cost is a fraction of the rebuild. Developers in 2026 type less code than they did in 2024. They make more decisions — and each decision now flows through AI-amplified output, so it compounds faster in both directions. So don't stop vibe coding. Just don't vibe code forever. https://lnkd.in/gT54FR5v

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  • Diffco reposted this

    AI-native vs AI-assist development. Two completely different conversations are happening under the label "AI in software development," and leaders keep budgeting for one while asking for the other. AI-assist is engineers shipping faster with Copilot, Cursor, Claude Code. The product behaves identically — the user can't tell AI was involved. AI-native is software whose runtime behavior depends on models. Probabilistic, drifting, expensive per request. The user absolutely can tell. Different skills. Different failure modes. Different hires. For AI-assist you don't hire "AI engineers" — you hire strong product engineers and invest in review rigor, type safety, and test discipline so the AI is a multiplier instead of a liability. For AI-native you hire people who have operated LLM systems in production. Shipped a RAG system with an eval set. Have war stories about prompt regressions. Rarer and more expensive. Plan for it. The costly mistake: treating AI-assist productivity as evidence your team can ship AI-native. Don't let "we're using AI" be one line on the roadmap. Split it, fund each separately, measure each on its own terms. https://lnkd.in/gDntfQjR

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  • Diffco reposted this

    AI in fintech: building secure agentic workflows for regulated environments Fintech AI runs 12–18 months behind the broader market. Not because the engineering is harder — because the failure cost is higher and the path through compliance is longer. You can compress that lag without inheriting the risk that created it. A few positions we hold firmly: Models propose, deterministic services execute. The model never holds the keys to a money-moving API. It emits a structured action object; a service re-validates every field and applies policy checks before anything happens. Even after the user confirms. Policy gates are code, not prompts. "Amount over X requires dual approval" is a unit-tested function with explicit failure behavior. The model can make mistakes. The gate cannot. Audit logging at the model layer. Every prompt, output, model version, tool call, retry — with identity, timestamp, and policy decision. Write-once. Searchable by compliance without engineering in the loop. And the one we don't move on: no agent takes an action against money or identity without a human confirming, regardless of how confident it looks. The best predictor of success isn't architecture. It's whether compliance was in the room in week one. https://lnkd.in/gcPmasDr #Fintech

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  • Diffco reposted this

    Self-hosted vs API-based LLMs: the 2026 cost-and-control tradeoff "Should we self-host to save money?" lands in our inbox a few times a quarter. Usually from a CFO staring at a bill. The honest answer is that most teams who run the numbers properly stay on the API — and the ones who don't run the numbers end up paying more for worse output. What gets left out of the self-hosted estimate: GPU fleets sized for peak sit idle most of the time, so real utilization lands at 30–60% and effective cost is 1.5–3x the headline rate. Then inference engineering — batching, KV-cache, speculative decoding — which is free in API pricing and 3–5x throughput if you skip it. Then the engineering time, the eval ownership, the reliability scar tissue you haven't earned yet. Break-even usually arrives at sustained hundreds of millions of tokens a day. Not before. But cost is sometimes the wrong frame entirely. Data residency, sovereign cloud, latency floors, big LoRA portfolios — there the comparison isn't self-hosted vs API, it's self-hosted vs no product. The strongest architectures we see are hybrid: frontier API for the hard 20%, small self-hosted model for the easy 80%, cache in front, router deciding. Pick a posture, not a religion. https://lnkd.in/gDev7myh

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  • Diffco reposted this

    Multi-agent system architecture: a teardown of how we built a customer support agent We shipped a customer support agent handling a five-figure number of tickets a week. 84% resolution in month one, 88% by month three. We did not start by deciding to build a multi-agent system. We started with a problem and an eval set, and got there over four iterations because single-agent kept hitting walls. Iteration 1: one model, one 4,000-token prompt, all five ticket categories. Instructions bled across categories. Middling accuracy, premium rates for what should have been cheap classification. Iteration 2: router plus one solver. Bleed-through stopped, complex categories still failed. Iteration 3: router plus specialists. 58% → 81% in a week. Then we noticed 7% of tickets touch two categories and the router was throwing half the answer away. Iteration 4, shipped: triage classifier, parallel specialists, orchestrator that stitches structured outputs, reviewer, and a confirmation step. Deliberately unfashionable choices — agents communicate in JSON, not English. No autonomous actions on money or identity. Strict tool boundaries per agent. If you're reaching for multi-agent because it's interesting rather than because single-agent failed you, you're going to overspend. https://lnkd.in/gMm7Ek7J

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