Skeptical of the 'SaaSpocalypse'? Bill Gurley says you should channel your inner Warren Buffett and strike (www.businessinsider.com)

In a recent interview on CNBC's Squawk Box, investor Bill Gurley urged those skeptical of the Software-as-a-Service (SaaS) sector to reconsider their stance and invest, despite the ongoing decline in SaaS stock prices as fears of a "SaaSpocalypse" loom. He compared the current anxiety around SaaS companies to earlier disruptions in the tech industry and emphasized that even AI-native organizations continue to rely on traditional software vendors, indicating that there's still inherent value in these companies. Gurley also raised concerns about the increasingly circular nature of AI and cloud infrastructure deals, citing examples like Meta's acquisition of computing power from AMD. He likened the structure of these transactions to past financial scandals like Enron, suggesting that such models could lead to future risks. Despite the challenges, he remains optimistic about AI's potential to enhance productivity and skills, referring to it as "jet fuel" for workers. Gurley's take underscores the dual narrative of caution and opportunity within the rapidly evolving AI landscape, prompting investors to navigate with both prudence and strategic foresight.