Software ‘Armageddon’ overblown, say AI founders and venture investors
FOX Business’ Lauren Simonetti has the details from Ashburn, Virginia, on ‘The Big Money Show.’
DOHA, Qatar – This week’s historic $1 trillion rout in U.S. software giants like Microsoft and Salesforce has sent a chill across Silicon Valley and around the world.
Speaking with fast-growing AI unicorn founders and top venture investors at Web Summit Qatar, many argued the software “Armageddon” narrative is overblown – even as they acknowledge AI valuations look stretched.
The founder of the $7 billion agentic AI unicorn Glean, Arvind Jain, said he doesn’t think AI will make software-as-a-service obsolete.
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A computer screen displays an image of artificial intelligence. (iStock)
“I think AI is a really powerful technology that people have to embed,” he said, adding that delivering products and services “will all continue,” arguing integration is how software services will thrive in the future.
Meantime, the $17 billion-valued decacorn Miro’s founder, Andrey Khusid, said AI “valuations are crazy, and valuations will correct,” but in his estimate, valuations will “normalize in the next two years.”
Technology investors also believe the AI bubble is deflating. Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas List, said “it’s just a matter of time,” as he sees the bubble – especially for large companies – deflating.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 401.14 | +7.47 | +1.90% |
| CRM | SALESFORCE INC. | 191.37 | +1.45 | +0.76% |
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Both investors and founders compared the moment to the dot-com era: most startups will fail, but the ones that survive will be the generational winners of the AI revolution. The prevailing view in Doha is that the boom has been more “responsible” than prior cycles because many companies are generating real revenue – even if valuations may still correct.
IPO market: why AI giants may wait
Another point of discussion in Doha was the IPO market, amid reports that AI giants OpenAI and Anthropic are racing to get to market first to scoop up eager investor dollars looking to own a slice of the fastest-growing companies.
Khusid said he prefers to stay private, noting the company has been profitable for years, and he believes he can operate more efficiently without outside public-market pressure.
American flags on the floor at the New York Stock Exchange in New York, on Aug. 18, 2025. (Michael Nagle/Bloomberg via Getty Images)
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Jain said many AI companies also prefer to stay private longer. “Public markets demand predictability,” he said — but “the market is actually changing so fast.”
Many of the world’s most valuable AI startups – including OpenAI and Anthropic – are still not profitable, with reports that OpenAI is set to lose $14 billion this…
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