Software Stock Swoon Signals Extraordinary Faith in AI
Summary
SaaS stocks plunged sharply, erasing roughly $1 trillion in market value as investors rotate capital toward AI and question how quickly AI firms can displace established software vendors. The sell-off hit recent IPOs like Figma and Navan and has made new software IPOs less appealing, while crypto losses add further pressure on venture returns. A personal feud between Sam Altman and Anthropic played out publicly after Anthropic ran Super Bowl ads criticizing OpenAI, underscoring high stakes around AI business models and revenue approaches. Separate items note a study that supports scaling laws for large models and several major funding rounds, including Waymo ($16B), Cerebras ($1B), ElevenLabs ($500M), Resolve AI ($125M), Osmo ($70M), and Fundamental ($255M).
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