Sure, but if they modify the AGPL they need to disclose that prominently in the program or service covered under AGPL, similarly, if they incorporate such code in their own, possible non-AGPL code (e.g., GPL) the combined code base will become AGPLv3.
But sure, given that you upheld to the licenses rules, like the notice of any derivation/change, you can still provide commercial service just fine.
The "power" of the AGPLv3 is that no company can just "steal" your AGPLv3 licensed project, change it to make it seem like it's theirs, and provided it as a service without telling anybody about the actual origin of the upstream project nor laying the changes to contribute back to upstream; something that the GPL would allow (for SaaS like offerings); that can still be a huge advantage for startups; if it's the right choice depends a lot on the product and intentions of such a start-up.
(the quoted words are there for a) not a native speaker, so avoid reading too much into my wording and b) stealing is rather a harsh term I don't like to use in connotation with (free) software code)
But sure, given that you upheld to the licenses rules, like the notice of any derivation/change, you can still provide commercial service just fine.
The "power" of the AGPLv3 is that no company can just "steal" your AGPLv3 licensed project, change it to make it seem like it's theirs, and provided it as a service without telling anybody about the actual origin of the upstream project nor laying the changes to contribute back to upstream; something that the GPL would allow (for SaaS like offerings); that can still be a huge advantage for startups; if it's the right choice depends a lot on the product and intentions of such a start-up.
(the quoted words are there for a) not a native speaker, so avoid reading too much into my wording and b) stealing is rather a harsh term I don't like to use in connotation with (free) software code)