Artificial Intelligence (AI) in the form of large language models (LLMs) has made quite incredible strides in coding capabilities in the past year. As a result, stocks of software companies are coming under pressure (the clumsily-named “SaaSpocalypse”). It seems that each time a new frontier model drops, the stock market reacts negatively. The underlying logic appears to be that “anyone can build their own software to do X” and that therefore existing companies selling software doing X are going to go out of business. I don’t think that checks out. AI is definitely causing massive changes to the software industry, but the Saaspocalypse looks overhyped.
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