The current AI-driven downturn in SaaS valuations will primarily eliminate low-end, commoditized tools. Large enterprise platforms are protected because implementing AI effectively is complex and requires the deep, trusted C-suite relationships and integration capabilities that incumbents possess.

The SaaS market isn't dying; it's splitting. While legacy SaaS stocks falter, a 'Cambrian explosion' of new, AI-native B2B companies is thriving. Founders must align with this 'wired' category, as the market for 'grandpa's software' is vanishing.

Contrary to the "SaaS-pocalypse" theory, AI agents will become a new, high-volume user base for SaaS tools. This will drive massive growth for companies that adapt their products to be usable by both humans and AI agents simultaneously.

Just as the shift from on-premise to SaaS created a major valuation rerating for software companies, the move to 'agentic AI' will do the same. Companies that successfully become 'agentic' will capture more economic rent, potentially leading to exit multiples higher than the 6-8x revenue seen today.

The idea that AI will kill SaaS is flawed. Instead, SaaS is evolving to integrate "agentic" capabilities. This creates a hybrid model where humans and AI agents collaborate within optimized workflows, delivering more value than either could alone. This fusion expands the market rather than destroying it.

SaaS products like Salesforce won't be easily ripped out. The real danger is that new AI agents will operate across all SaaS tools, becoming the primary user interface and capturing the next wave of value. This relegates existing SaaS platforms to a lower, less valuable infrastructure layer.

Contrary to fears of a 'SaaS apocalypse,' AI agents could make platforms more valuable. By removing human limits like learning curves and work hours, agents can use software tools 24/7 at scale. This unlocks immense, previously untapped utility, shifting value from per-seat fees to high-volume consumption revenue.

The panic in SaaS is over, but the market is now split. Companies whose products are leveraged by AI agents (like Twilio and Datadog) are re-accelerating. In contrast, traditional software selling more seats to humans is seeing stagnant growth as AI token spend cannibalizes those budgets.

Contrary to the "SaaS-pocalypse" fear, Nvidia's CEO believes AI agents will boost the software industry. He argues agents will use existing tools like databases and calculators rather than replace them. This suggests a future of AI-driven augmentation, where agents become users of and distribution channels for specialized SaaS products.