AI Founders and Venture Investors Dismiss Software ‘Armageddon’ as Exaggerated
FOX Business’ Lauren Simonetti has the details from Ashburn, Virginia, on ‘The Big Money Show.’
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.
At the Web Summit Qatar, discussions with fast-growing AI unicorn founders and top venture investors revealed a consensus: the software “Armageddon” narrative may be exaggerated. While acknowledging that AI valuations appear stretched, many believe that the sector is still poised for growth.
Arvind Jain, founder of the $7 billion agentic AI unicorn Glean, expressed confidence that AI will not render software-as-a-service obsolete. “AI is a really powerful technology that people have to embed,” he stated, emphasizing that the delivery of products and services will continue to thrive through integration.
Meanwhile, Andrey Khusid, founder of the $17 billion decacorn Miro, acknowledged that AI valuations are “crazy” and predicted a correction. However, he believes that valuations will “normalize in the next two years.”
Technology investors share this sentiment, with Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas List, suggesting that the AI bubble is deflating. “It’s just a matter of time,” he noted, particularly for larger companies.
Both investors and founders likened the current climate to the dot-com era, where many startups may fail, but the survivors will emerge as generational winners in the AI revolution. The prevailing view in Doha is that this boom has been more “responsible” than previous cycles, as many companies are generating real revenue, even if valuations may still need adjustment.
IPO market: why AI giants may wait
Another key topic of discussion was the IPO market. Reports indicate that AI giants OpenAI and Anthropic are racing to go public to attract eager investors looking to capitalize on the fastest-growing companies.
Khusid expressed a preference for remaining private, citing years of profitability and the belief that he can operate more efficiently without the pressures of public markets. Jain echoed this sentiment, noting that many AI companies prefer to stay private longer due to the unpredictable nature of the market.
Despite the challenges, many of the world’s most valuable AI startups, including OpenAI and Anthropic, are still not profitable. Reports suggest that OpenAI is set to lose $14 billion this year. Nevertheless, investors continue to pour billions into the sector. According to Forbes, over $340 billion in cash was directed toward 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 enjoy ample access to funding, other startups are finding the market more challenging. Juan Pablo Ortega, founder of Yuno and a previous founder of Latin American unicorn Rappi, noted that non-AI startups are being benchmarked against AI companies that are experiencing extreme growth rates. “You’re getting compared with AI companies that are growing 1000% year over year,” he remarked.
U.S.–China AI race: innovation vs. scale
The U.S.–China AI race was another hot topic, with discussions on which country is leading in technology. Larry Li from Amino Capital stated that while the U.S. is ahead in innovation, China excels in scaling, benefiting from its supply chain and production capacity, as well as a larger pool of AI engineers.
When asked about the potential “winner” of this race, most founders and investors agreed that there is room for both countries to thrive, with opportunities for both closed models like OpenAI and open models developed in China.
Despite the recent turbulence in the stock market, the Dow Jones managed to cross the historic 50,000 level, highlighting the ongoing enthusiasm surrounding the AI race, even as many in Doha anticipate a valuation reset.
FOX Business’ Lauren Simonetti has the details from Ashburn, Virginia, on ‘The Big Money Show.’
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.
At the Web Summit Qatar, discussions with fast-growing AI unicorn founders and top venture investors revealed a consensus: the software “Armageddon” narrative may be exaggerated. While acknowledging that AI valuations appear stretched, many believe that the sector is still poised for growth.
Arvind Jain, founder of the $7 billion agentic AI unicorn Glean, expressed confidence that AI will not render software-as-a-service obsolete. “AI is a really powerful technology that people have to embed,” he stated, emphasizing that the delivery of products and services will continue to thrive through integration.
Meanwhile, Andrey Khusid, founder of the $17 billion decacorn Miro, acknowledged that AI valuations are “crazy” and predicted a correction. However, he believes that valuations will “normalize in the next two years.”
Technology investors share this sentiment, with Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas List, suggesting that the AI bubble is deflating. “It’s just a matter of time,” he noted, particularly for larger companies.
Both investors and founders likened the current climate to the dot-com era, where many startups may fail, but the survivors will emerge as generational winners in the AI revolution. The prevailing view in Doha is that this boom has been more “responsible” than previous cycles, as many companies are generating real revenue, even if valuations may still need adjustment.
IPO market: why AI giants may wait
Another key topic of discussion was the IPO market. Reports indicate that AI giants OpenAI and Anthropic are racing to go public to attract eager investors looking to capitalize on the fastest-growing companies.
Khusid expressed a preference for remaining private, citing years of profitability and the belief that he can operate more efficiently without the pressures of public markets. Jain echoed this sentiment, noting that many AI companies prefer to stay private longer due to the unpredictable nature of the market.
Despite the challenges, many of the world’s most valuable AI startups, including OpenAI and Anthropic, are still not profitable. Reports suggest that OpenAI is set to lose $14 billion this year. Nevertheless, investors continue to pour billions into the sector. According to Forbes, over $340 billion in cash was directed toward 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 enjoy ample access to funding, other startups are finding the market more challenging. Juan Pablo Ortega, founder of Yuno and a previous founder of Latin American unicorn Rappi, noted that non-AI startups are being benchmarked against AI companies that are experiencing extreme growth rates. “You’re getting compared with AI companies that are growing 1000% year over year,” he remarked.
U.S.–China AI race: innovation vs. scale
The U.S.–China AI race was another hot topic, with discussions on which country is leading in technology. Larry Li from Amino Capital stated that while the U.S. is ahead in innovation, China excels in scaling, benefiting from its supply chain and production capacity, as well as a larger pool of AI engineers.
When asked about the potential “winner” of this race, most founders and investors agreed that there is room for both countries to thrive, with opportunities for both closed models like OpenAI and open models developed in China.
Despite the recent turbulence in the stock market, the Dow Jones managed to cross the historic 50,000 level, highlighting the ongoing enthusiasm surrounding the AI race, even as many in Doha anticipate a valuation reset.
