Asks about the term 'SASpocalypse' and the impact of Anthropic press releases driving hundreds of billions in software selloffs.
Host
Dan Ives
Dismisses the idea of Anthropic taking out the software index as extremely unlikely, comparing it to him becoming a figure skater.
Dan Ives
States the hearts and lungs of AI will be the use cases, and companies like ServiceNow and Salesforce will play instrumental roles and grow because of AI.
Dan Ives
Calls the current software selloff a 'knee-jerk' reaction and 'Armageddon-like trade'. In his career since the late 90s, it is the most head-scratching selloff relative to the positive outcome he expects.
Counters that the selloff isn't head-scratching, as a big company with great AI could just tell a chatbot to copy its CRM software to avoid monthly fees.
Host
Dan Ives
Acknowledges the high-level theory makes sense but argues the reality is different due to decades of embedded customer data, security, and long implementation cycles (e.g., 2 years for a demo).
Dan Ives
Core thesis: For every dollar spent on an NVIDIA chip, there's an $8-$10 multiplier across software infrastructure. This is a 'deep sea-type moment' in tech and a golden buying opportunity.
Presents the counter-argument: corporate clients are shifting spending to AI at the expense of enterprise software, creating a near-term headwind.
Host
Dan Ives
Agrees it's a fair point and a near-term headwind, as 67% of IT budgets require an AI focus.
Dan Ives
Argues that as use cases play out (citing Palantir as a poster child), companies like MongoDB and Snowflake will play huge roles. The AI revolution cannot reach its heights without software and infrastructure from Microsoft, Oracle, etc.
Asks about the changing business model of hyperscalers (no longer asset-light) and references Katrina Dudley's view that massive CapEx is digging a deeper moat.
Host
Dan Ives
Compares hyperscaler CapEx to building new cities like 1950s Vegas or modern Dubai. Big tech will not slow down; they must spend or miss the fourth industrial revolution.
Asks if disruption will come from AI startups (like a tax strategy AI startup that hit Schwab's stock) or from foundational models/hyperscalers.
Host
Dan Ives
Says it's a combination. For the first time in 30 years, the US is ahead of China in tech, leading to a period of innovation from startups, hyperscalers, and M&A.
Dan Ives
Investment thesis: 'Follow the yellow brick road, follow CapEx.' Increasing CapEx is bullish for tech and will eventually broaden the market rally into energy, financials, and healthcare.