Fly.io CEO Kurt Mackey announces he's stepping down, tagging in Scott Johnston as new CEO. The company has raised additional funding and is pivoting focus to Sprites—computers designed for AI coding agents. Mackey admits the company faced an "identity crisis" despite strong financial quarters, prompted by Theo Browne's skepticism about Fly.io's longevity.

Mackey explains that AI has fundamentally changed software development, making traditional cloud infrastructure principles less relevant. He argues that as AI enables anyone to build programs, conventional public cloud design bets against personalized, adaptive software. The company's original principles—deploying close to users and simplifying cloud complexity—are now secondary to serving agent-driven workflows.

Sprites address what agents actually need: ephemeral, on-demand computers with 100GB durable storage, metered billing that pauses when idle, and instant scalability. Unlike sandboxes, agents want full computers. The new Sprite iteration introduces the Sprite Block Device (SBD) and other subsystems, moving Sprites from skunkworks to company-wide focus while maintaining existing Fly Machines and PaaS features.