The future of business when everyone is a FANG engineer

I worry that the old advice of just investing in index funds may be obsolete as tech companies lose their advantage.

My thesis is that the moat of large tech companies will be removed as everyone gets access to powerful large language models. Everyone will have the ability to become a FANG engineer. I feel like their margins will drop as anyone can create custom software.

FB and Alphabet killed local newspapers and advertising. Uber killed local taxi services. They were extractive businesses as silicon valley earned a tribute for providing software. Now anyone will do it. Local businesses will easily be able to create custom solutions. Business will move away from large corporations towards indie developers and small businesses.

For decades the value in indices has moved from tangible to intangible business. I feel like this will reverse. The business of "doing" will be more valuable.
Perhaps Amazon, Alphabet and Microsoft will end up like IBM of old, and earn their money from hardware via server space on their cloud rather than their software.

I personally use google a lot less now that I have access to ChatGPT. I also program my own solutions now. This will only accelerate. Why would anyone buy off the shelf software anymore?

Maybe we should dump the likes of Salesforce and invest in energy, transport, and companies with physical, capital or regulatory moats. Small businesses will dominate tech, and big businesses will only be for capital intensive areas.

It will flip, the future will be to “Sell atoms, not electrons.”