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FOX Business’ Lauren Simonetti has the details from Asburn, Virginia on “The Big Money Show.”
DOHA, Qatar: This week’s historic $1 trillion rout of US software giants like Microsoft and Salesforce has sent chills through Silicon Valley and around the world.
Speaking of rapid growth i have a unicorn Founders and top venture investors at Web Summit Qatar, many argued that the software “Armageddon” narrative is overblown, although they acknowledge that AI valuations appear overblown.
Arvind Jain, founder of the $7 billion agent AI unicorn, said he doesn’t think AI will make software-as-a-service obsolete.
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A computer screen shows an image of artificial intelligence. (iStock)
“I think AI is a really powerful technology that people need to embrace,” he said, adding that product and service delivery “will continue,” arguing that integration is how software services will thrive in the future.
Meanwhile, $17 billion decacorn Miro founder Andrey Khusid said AI “valuations are crazy and valuations will correct,” but he estimates valuations will “normalize in the next two years.”
Tech investors also believe the AI bubble is deflating. Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas list, said “it’s only a matter of time” as he sees the bubble, especially for large companies, deflate.
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 401.14 | +7.47 |
+1.90% |
| CRM | SALESFORCE INC. | 191.37 | +1.45 |
+0.76% |
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Investors and founders alike compared the moment to the dot-com era: most startups will fail, but those that survive will be the generational winners of the AI revolution. The prevailing view in Doha is that the boom has been more “responsible” than previous cycles because many companies are generating real income – even if the ratings can still be corrected.
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Another point of discussion in Doha was the IPO marketamid reports that AI giants OpenAI and Anthropic are scrambling to get to market first to raise dollars from eager investors looking to own a piece of the fastest-growing companies.
Khusid said he prefers to stay private, noting that the company has been profitable for years and believes it can operate more efficiently without outside pressure from the public market.
American flags on the floor of the New York Stock Exchange in New York on August 18, 2025. (Michael Nagle/Bloomberg via Getty Images)
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Jain said many AI companies also prefer to stay private longer. “Public markets demand predictability,” he said, but “the market is changing so quickly.”
Many of the world’s most valuable AI startups, including OpenAI and Anthropic, are still unprofitable, with reports that OpenAI will lose $14 billion this year. That hasn’t stopped investors from pouring billions into the sector. According to Forbes, more than $340 billion in cash chased global startups by 2025, with more than 65% of that capital invested in AI companies.
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While AI companies still have abundant access to cash, other startups say the funding market is tougher. Speaking on a panel moderated by FOX Business, Yuno founder Juan Pablo Ortega, who also founded Latin American unicorn Rappi, said non-AI startups are being compared to AI companies that are growing at breakneck rates.
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“You’re being compared to AI companies that are growing 1,000% year over year and are doing things that aren’t possible for the rest of us,” he said.
Artificial intelligence logo on a circuit board. (iStock)
US-China AI Race: Innovation vs. ladder
Another hot topic: the US-China AI race and which country is ahead in technology. Amino Capital’s Li said the US is ahead in innovation, however China is ahead in scale, arguing that China has an advantage through supply chain and production capacity, as well as a greater number of AI engineers.
When asked whether the US or China will “win,” most founders and investors said there is room for both, with growth for closed models like OpenAI and open models, including those developed in China.
Despite the turmoil in the stock market this week, the Dow Jones still managed to cross the historical level of 50,000, underscoring the continued exuberance surrounding the AI race, even as many in Doha expect a valuation reset.
