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Sridhar Vembu Warns AI Is Deflating SaaS Bubble
Sridhar Vembu says AI-driven efficiency is deflating SaaS valuations, warning that only AI-native businesses will sustain long-term growth.
Sridhar Vembu warned that rapid advances in artificial intelligence are deflating the global SaaS boom, as AI tools sharply cut software development and support costs. Reacting to market volatility after a major AI release, he said many subscription businesses were overvalued. Vembu argued durable firms will be those rebuilding products around AI efficiency, not chasing inflated growth narratives as markets reassess technology valuations worldwide quickly.