TLDR Tech / Founders
How Much of the Software Slowdown Is Just Budgets Flowing to Anthropic and OpenAI? Maybe As Much As 70%
Almost every major public software company has printed lower growth rates every single year since the 2021 peak. The conventional explanation is that vibe coding is eating software, but what's actually happening is simpler and more damaging: companies have finite budgets, and they're pouring an unprecedented share of those budgets into AI infrastructure and foundation model providers. The software budget pool is now shared with a new category that went from zero to over $40 billion in two years. This structural rebalancing will take several years to sort itself out, and it is going to hurt a lot of software companies before it does.
Read the full story