[mrwh]

> investors are simultaneously punishing hyperscaler stocks because AI capex might generate weak returns, while destroying software stocks because AI adoption will be so pervasive it renders all existing software obsolete. Both cannot hold simultaneously.

I don't understand this point. Can't it be possible that the ultimate effect is to devalue, hugely, software? As in it can totally both be true that AI capex has weak returns and at the same time most SaaS companies go bankrupt. To take an analogy: if ever we manage to successfully mine asteroids, and find some vast quantity of platinum, it could both be true that every existing platinum miner loses their shirt, and also that the value of platinum sinks so far that the asteroid mining company cannot cover its costs.

[re-thc]

SaaS companies were just overvalued. They had crazy multiples. Not even an AI thing.

[zozbot234]

It is an AI thing though. AI makes it far easier to create bespoke software targeted at narrow specialized domains, which is the mainstay of modern SaaS. We'll probably see "proper" FLOSS expand into these sectors too, such that the software won't be simply a matter of internal vibecoding by any single business - instead, the maintenance work will be shared.