AI leaders argue software will adapt — not die — but valuations are stretched

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

Speaking with fast-growing AI unicorn founders and top venture investors at Web Summit Qatar, many argued the software “Armageddon” narrative is overblown – even as they acknowledge AI valuations look stretched.

The founder of the $7 billion agentic AI unicorn Glean, Arvind Jain, said he doesn’t think AI will make software-as-a-service obsolete.

GOOGLE PLANS TO SPEND BIG AS AI RACE WITH RIVALS INTENSIFIES

“I think AI is a really powerful technology that people have to embed,” he said, adding that delivering products and services “will all continue,” arguing integration is how software services will thrive in the future.

Meantime, the $17 billion-valued decacorn Miro’s founder, Andrey Khusid, said AI “valuations are crazy, and valuations will correct,” but in his estimate, valuations will “normalize in the next two years.”

Technology investors also believe the AI bubble is deflating. Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas List, said “it’s just a matter of time,” as he sees the bubble – especially for large companies – deflating.

APPLE SEES BIGGEST SALES JUMP IN 4 YEARS, POWERED BY ‘STAGGERING’ IPHONE DEMAND

Both investors and founders compared the moment to the dot-com era: most startups will fail, but the ones that survive will be the generational winners of the AI revolution. The prevailing view in Doha is that the boom has been more “responsible” than prior cycles because many companies are generating real revenue – even if valuations may still correct.

IPO market: why AI giants may wait

Another point of discussion in Doha was the IPO market, amid reports that AI giants OpenAI and Anthropic are racing to get to market first to scoop up eager investor dollars looking to own a slice of the fastest-growing companies.

Khusid said he prefers to stay private, noting the company has been profitable for years, and he believes he can operate more efficiently without outside public-market pressure.

NVIDIA CEO SAYS AI BOOM WILL CREATE ‘SIX-FIGURE’ CONSTRUCTION JOBS

Jain said many AI companies also prefer to stay private longer. “Public markets demand predictability,” he said — but “the market is actually changing so fast.”

Many of the world’s most valuable AI startups – including OpenAI and Anthropic – are still not profitable, with reports that OpenAI is set to lose $14 billion this year. That has not deterred investors from pouring billions into the sector. According to Forbes, more than $340 billion in cash chased global startups in 2025 – with more than 65% of that capital invested in AI companies.

“Compared to AI”: the new fundraising benchmark

While AI companies still have abundant access to cash, other startups say the funding market is tougher. Speaking on a panel moderated by FOX Business, Yuno founder Juan Pablo Ortega – who also founded Latin American unicorn Rappi — said non-AI startups are being benchmarked against AI companies growing at extreme rates.

CLICK HERE TO GET FOX BUSINESS ON THE GO

“You’re getting compared with AI companies that are growing 1,000% year over year and are doing things that are not possible for the rest of us,” he said.

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

Another hot topic: the U.S.–China AI race and which country is ahead in the technology. Amino Capital’s Li said the U.S. is ahead in innovation, but China is ahead in scaling, arguing China has an advantage through supply chain and production capacity as well as a higher number of AI engineers.

When asked whether the U.S. or China will “win,” most founders and investors said there is room for both — with growth for closed models like OpenAI and open models, including those developed in China.

Despite the stock market turbulence this week, the Dow Jones managed to cross the historic 50,000 level, underscoring the continued exuberance surrounding the AI race — even as many in Doha expect a valuation reset.