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Reading: Software program ‘Armageddon’ overblown, say AI founders and enterprise traders
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Business

Software program ‘Armageddon’ overblown, say AI founders and enterprise traders

Editor
Last updated: February 7, 2026 6:36 pm
Editor
Published: February 7, 2026
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Software program ‘Armageddon’ overblown, say AI founders and enterprise traders



Contents
  • IPO market: why AI giants could wait
  • “In comparison with AI”: the brand new fundraising benchmark
  • U.S.–China AI race: innovation vs. scale

FOX Enterprise’ Lauren Simonetti has the main points from Asburn, Virginia, on ‘The Huge Cash Present.’

DOHA, Qatar – This week’s historic $1 trillion rout in U.S. software program giants like Microsoft and Salesforce has despatched a chill throughout Silicon Valley and around the globe.

Talking with fast-growing AI unicorn founders and prime enterprise traders at Internet Summit Qatar, many argued the software program “Armageddon” narrative is overblown – whilst they acknowledge AI valuations look stretched.

The founding father of the $7 billion agentic AI unicorn Glean, Arvind Jain, stated he doesn’t suppose AI will make software-as-a-service out of date.

“I feel AI is a extremely highly effective know-how that individuals must embed,” he stated, including that delivering services “will all proceed,” arguing integration is how software program companies will thrive sooner or later.

Meantime, the $17 billion-valued decacorn Miro’s founder, Andrey Khusid, stated AI “valuations are loopy, and valuations will right,” however in his estimate, valuations will “normalize within the subsequent two years.”

Know-how traders additionally consider the AI bubble is deflating. Larry Li, founding father of Amino Capital and a member of Forbes’ annual Midas Checklist, stated “it’s only a matter of time,” as he sees the bubble – particularly for giant firms – deflating.

Each traders and founders in contrast the second to the dot-com period: most startups will fail, however the ones that survive would be the generational winners of the AI revolution. The prevailing view in Doha is that the growth has been extra “accountable” than prior cycles as a result of many firms are producing actual income – even when valuations should still right.

IPO market: why AI giants could wait

One other level of dialogue in Doha was the IPO market, amid studies that AI giants OpenAI and Anthropic are racing to get to market first to scoop up keen investor {dollars} seeking to personal a slice of the fastest-growing firms.

Khusid stated he prefers to remain personal, noting the corporate has been worthwhile for years, and he believes he can function extra effectively with out outdoors public-market strain.

Jain stated many AI firms additionally choose to remain personal longer. “Public markets demand predictability,” he stated – however “the market is definitely altering so quick.”

Lots of the world’s most respected AI startups – together with OpenAI and Anthropic – are nonetheless not worthwhile, with studies that OpenAI is about to lose $14 billion this yr. That has not deterred traders from pouring billions into the sector. In response to Forbes, greater than $340 billion in money chased world startups in 2025 – with greater than 65% of that capital invested in AI firms.

“In comparison with AI”: the brand new fundraising benchmark

Whereas AI firms nonetheless have plentiful entry to money, different startups say the funding market is harder. Talking on a panel moderated by FOX Enterprise, Yuno founder Juan Pablo Ortega – who additionally based Latin American unicorn Rappi – stated non-AI startups are being benchmarked towards AI firms rising at excessive charges.

“You’re getting in contrast with AI firms which are rising 1000% yr over yr and are doing issues that aren’t attainable for the remainder of us,” he stated.

U.S.–China AI race: innovation vs. scale

One other scorching subject: the U.S.–China AI race and which nation is forward within the know-how. Amino Capital’s Li stated the U.S. is forward in innovation, however China is forward in scaling, arguing China has a bonus by means of provide chain and manufacturing capability in addition to a better variety of AI engineers.

When requested if the U.S. or China will “win,” most founders and traders stated there’s room for each – with progress for closed fashions like OpenAI and open fashions, together with these developed in China.

Regardless of the inventory market turbulence this week, the Dow Jones nonetheless managed to cross the historic 50,000 stage, underscoring the continued exuberance surrounding the AI race – whilst many in Doha count on a valuation reset.

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