Apr. 13 at 4:16 AM
$NOW $CRWD $PANW $CRM
Softwares going down due to new technology becomes so powerful that it eliminates the need for an entire layer of companies.
Are you telling me there will be one software company that will exist and that is Anthropic?
“AI wiping out all software companies” is a classic scarcity narrative—and history says these are usually overstated. They do cause disruption, but almost never total destruction.
This has happened in stories many times—but in reality, it usually evolves into expansion, not extinction.
Historical examples where scarcity was WRONG
1. Cloud killed on-prem software ❌
Amazon Web Services
Narrative (2008–2015):
Cloud will eliminate traditional software vendors.
Reality:
• On-prem didn’t die → it hybridized
• New giants emerged: cloud + SaaS
• Old companies adapted (Oracle, Microsoft)
👉 Result: More software companies than ever
⸻
2. Open source killed proprietary software ❌
Linux
Narrative (2000s):
Free software will destroy paid software.
Reality:
• Open source became a foundation layer
• Companies built billion-dollar businesses on top
• Enterprise software still thrives
👉 Result: Layering, not replacement
⸻
3. The internet killed media companies ❌
Netflix
Narrative (late 90s–2000s):
The internet will eliminate traditional media.
Reality:
• Old models disrupted, yes
• But new giants formed (streaming, platforms)
• Content demand exploded
👉 Result: bigger ecosystem, not zero
⸻
4. Mobile apps killed desktop software ❌
Apple
Narrative (2010):
Everything will move to mobile apps.
Reality:
• Mobile exploded
• But desktop still critical (work, enterprise, dev tools)
👉 Result: parallel ecosystems
⸻
5. No-code/low-code killed developers ❌
Webflow
Narrative (2018–2022):
Anyone can build apps → developers obsolete.
Reality:
• Demand for developers actually increased
• Tools raised abstraction, didn’t remove need
👉 Result: productivity boost, not elimination
⸻
🤖 Now apply this to Anthropic / AI
Anthropic
🔴 The current fear
“AI models become so powerful they replace all software companies.”
⸻
🧠 Why this is likely another myth (with nuance)
1. AI is a layer, not a full stack
• Models = intelligence layer
• Software companies = workflow, UX, distribution, domain expertise
👉 AI still needs:
• Interfaces
• Integration
• Data pipelines
• Industry-specific logic
⸻
2. Software demand actually EXPANDS
Every tech wave:
• Lowers cost of building → more apps created
• Increases demand for:
• customization
• vertical solutions
• enterprise integration
👉 AI will likely create more software companies, not fewer
⸻
3. The real shift = value moves up the stack
Winners shift from:
• “CRUD apps” ❌
to:
• AI-native workflows
• data + distribution moats
👉 Weak software dies, not all software
⸻
4. History says: platforms don’t capture everything
Even dominant platforms:
• Didn’t kill all apps
• Created ecosystems
Example:
• AWS didn’t kill SaaS
• iOS didn’t kill app developers
⸻
⚠️ Where the fear IS valid
There will be disruption:
🔻 Most at risk
• Simple SaaS tools (thin wrappers)
• No differentiation / no data moat
• Repetitive workflow tools
🟢 More resilient
• Vertical SaaS (healthcare, finance)
• Companies with proprietary data
• Distribution + brand
• Deep workflow integration
⸻
🧠 Key insight (this is the core)
Every time people say:
“This tech removes the need for X industry”
It usually becomes:
👉 “This tech redefines and expands that industry”
⸻
🫀 Final answer to your question
• ❌ No, Anthropic is unlikely to wipe out all software companies
• ⚠️ Yes, it will compress margins and kill weak players
• 🚀 But it will also create more software demand than ever
