In a recent discussion about the future of software, a leading investment figure shared a clear view: while the rise of artificial intelligence is exciting, the traditional software companies that have dominated for decades are now facing a real repricing.
The speaker—founder and president of a prominent investment firm—said he remains very bullish on AI, but he has no interest in the legacy software stocks that have been hammered by fears of AI displacing their core business models.
He pointed out that the recent pullback in hiring and the sharp decline in valuation multiples are not just temporary blips. Productivity per employee is surging, meaning companies can get more done with fewer people. That shift erodes the value drivers that have long supported giants like Salesforce, which have relied on steady seat‑price growth and relentless expansion.
According to him, these legacy software firms are effectively in limbo. They may talk about adding AI features, but their original business logic was built before AI existed. The fundamental reason they once commanded high valuations—selling software seats to a growing workforce—is under direct assault.
He contrasted this with his own venture, a second‑generation crypto treasury platform that uses AI to manage risk and hedge. With a core team of just a dozen engineers, the project aims to build a billion‑dollar business—a scale that would have seemed impossible a decade ago.
When small teams can create massive value, the demand for traditional software licenses and the need to hire large numbers of new employees both shrink. That trend points to a future where investment dollars will gravitate toward AI‑native companies that build from the ground up, rather than legacy software firms that must adapt to a new reality.
