AI Is Quietly Killing the Software Industry That Built Silicon Valley
SaaS companies are so scared of AI eating their lunch that they're doing something they've never done before: showing their homework.
Something weird is happening in the software world. Private SaaS companies, the kind that normally guard their financials like state secrets, are voluntarily posting their earnings to prove they're not dying. That's how scared the industry is right now.
A Fireship video breaking down this exact topic blew up on YouTube this week with over 530,000 views in just one day. The gist? AI is fundamentally breaking the business model that made companies like Salesforce, Slack, and thousands of others worth billions. Instead of paying monthly subscriptions for software, companies are starting to just... build their own tools with AI.
The traditional SaaS model works like this: you pay $50 per month per user for software someone else built. But when an AI coding agent can whip up a custom version of that same tool in an afternoon, why would you keep paying? Global IT spending is projected at $6.15 trillion in 2026, and a growing chunk of that is shifting from buying software to building it with AI.
Some are calling it the 'SaaSocalypse.' Others say it's just evolution. Either way, if you work in tech or own stock in software companies, this is the story you need to understand.
As reported by Gizmodo and Fireship.
Source: Fireship
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