Down Round Is SaaS Dead?
Jan 21, 2026
The hosts explore the looming question of AI's impact on B2B SaaS products. They discuss recent declines in SaaS stock versus soaring AI winners like Nvidia. There's a deep dive into how AI could disrupt existing software by eliminating user interface layers. The duo critiques half-baked AI features in popular tools and examines new disruptive business models driven by AI. They conclude that while SaaS isn’t dead, it faces significant evolution and uncertainty ahead.
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SaaS's Old Engine Is Per-Seat Recurring Revenue
- SaaS growth relied on per-seat subscriptions and near-zero marginal cost to scale elegantly.
- That model now faces uncertainty as AI can abstract away UIs and reduce seat-based demand.
No-Code AI Raises Investor Uncertainty
- AI tools like Claude Code accelerate investor doubts by showing non-technical users can build useful automations.
- Markets price that uncertainty by punishing legacy SaaS valuations even if products aren’t immediately obsolete.
Weekend DIY Replacements Spooked Investors
- Some teams reported replacing paid SaaS by stitching AI tools over a weekend and cancelling contracts.
- Those stories alarm investors who worry about rapid DIY competition eating recurring revenue.