Anthropic co-founder and chief executive Dario Amodei says some software companies will go bankrupt as AI disrupts the industry.
In an interview with Andrew Ross Sorkin, Amodei says the outcome for individual software-as-a-service (SaaS) companies will depend entirely on how quickly and seriously they respond to the threat AI poses to their existing business models.
“I think individual SaaS companies, it’s very possible for them to lose market value, go bankrupt, completely go bust, but it depends on the response. I think there are incumbents today that are going to see very clearly, the moats here are going away, we’re really going to pivot, and we’ll do better than we did before, and there are others who are not going to pay attention, who are going to be blindsided, and they’re going to have a really bad time.”
The iShares Expanded Tech-Software Sector ETF (IGV), which tracks the investment results of an index composed of North American equities in the software industry, has been beaten down this year amid concerns that AI startups can now replicate a company’s codebase and offer services at a much lower cost.
Billionaire Chamath Palihapitiya previously said that investors don’t want to pay a large premium for the potential future earnings of software companies if someone else can disrupt their business.
Amodei also notes that regulators should keep a close watch on AI models and intervene when appropriate, but warns against regulations that slow down progress.
“We don’t want a Wild West where you can just do anything. We chose to do what we did with Mythos, but there was literally no law, no requirement, preventing us from just offering this thing in the wild with no safeguards…
The FDA slows down medical progress a lot. That’s a cautionary tale on the other direction.”
Photo by Mohammad Rahmani on Unsplash
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