AI Experts Downplay Software ‘Armageddon’
Despite a dramatic $1 trillion market dip for software giants such as Microsoft and Salesforce, leading AI entrepreneurs and venture capitalists argue that talk of a software “Armageddon” is exaggerated. At the Web Summit in Doha, Qatar, founders of fast-growing AI companies and top investors shared a more optimistic view, acknowledging inflated valuations but expressing confidence in the sector’s resilience.
Arvind Jain, the founder of Glean—a $7 billion agentic AI company—dismissed fears that artificial intelligence will render software-as-a-service (SaaS) obsolete. “AI is a powerful technology that must be embedded,” Jain said. “However, the delivery of products and services will continue. Integration is the path forward for software services.”
Valuations May Normalize, Not Collapse
Andrey Khusid, founder of Miro—a $17 billion-valued company—agreed that AI valuations are stretched but predicted a market correction rather than a crash. “Valuations are crazy right now,” he said, “but I expect them to normalize within the next two years.”
Technology investors also anticipate a gradual deflation of the AI investment bubble. Larry Li, founder of Amino Capital and a member of Forbes’ Midas List, remarked, “It’s just a matter of time. Particularly for large companies, the bubble is starting to ease.”
Despite recent market turbulence, Microsoft (MSFT) and Salesforce (CRM) saw modest stock gains, signaling persistent investor interest in AI-driven growth stories.
Comparisons to the Dot-Com Era
Many at the summit likened the current AI boom to the dot-com era, suggesting that while most startups may fail, the survivors could become generational leaders. However, this time around, the prevailing sentiment is that the growth has been more grounded. Numerous AI companies are generating real revenue, which makes this cycle more sustainable—even if valuations still need to adjust.
IPO Hesitations Among AI Giants
Another hot topic in Doha was the IPO landscape. As companies like OpenAI and Anthropic prepare potential public offerings, many founders are hesitant to go public too soon. Khusid emphasized the benefits of staying private, stating that Miro has been profitable for years and operates more efficiently outside the scrutiny of public markets.
Jain echoed this sentiment, saying, “Public markets demand predictability. But in a rapidly changing environment like this, that’s difficult to provide.”
Despite their reluctance to go public, AI companies continue to draw massive investment. Reports indicate that OpenAI could lose up to $14 billion this year, yet investor interest remains high. According to Forbes, over $340 billion was invested in global startups in 2025, with more than 65% going to AI ventures.
Non-AI Startups Struggle for Attention
While AI startups enjoy abundant funding, other sectors are facing tighter investment conditions. Juan Pablo Ortega, founder of Yuno and co-founder of Rappi, shared his concerns during a panel discussion moderated by FOX Business. “Non-AI startups are being unfairly compared to AI firms growing at 1,000% annually,” he noted. “It’s become nearly impossible to compete at that scale.”
The U.S.–China AI Rivalry
The summit also addressed the ongoing AI race between the U.S. and China. Larry Li noted that while the U.S. leads in innovation, China excels in scaling AI technologies. He credited China’s advantage to its robust supply chain, production capacities, and a larger pool of AI engineers.
When asked who would “win” the AI race, most panelists agreed there’s room for both. Growth is expected in both closed-source models like OpenAI and open-source alternatives emerging from China.
Market Optimism Persists
Despite concerns about overvaluations and market volatility, optimism remains high. The Dow Jones recently surpassed the 50,000 mark, highlighting continued enthusiasm around AI technologies. While experts at the Web Summit anticipate a correction in valuation, they believe this is part of a healthy market evolution rather than a catastrophic collapse.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.